Southwest Stock prices.

[NewHampshire Black Bears]

WN stock prices FOREVER stay in the $13-$15 range.

If the stock EVER hit (say) $17, I swear, I'd "Sh!t a brick" !

WHY ????

 

[jimntx]

WN wants their stock to remain cheap and tradable. When it gets above $20/shr they split it. Those splits are the reason that some long-time WN employees are millionaires today. And, I mean employees like flight attendants, mechanics and stock clerks--not just executives.

Sure, it may drop to $10/shr, but within a month or two it's back in the $13-$17 range. Wouldn't you like for shares that you own to rebound 30-70 per cent in a couple of months?

 

[BoeingBoy]

WN is the only U.S. airline that I know of that routinely pays a dividend, also. That allows the shareholders to achieve a return without stock price appreciation - unlike everyone else.

Jim

 

[NewHampshire Black Bears]

"Ah..HA"

(With a lil' help from my homies') NOW I Understand !!

THANX Guys !

 

[BoeingBoy]

NHBB's,

FWIW, I personally see WN as the only "investment" stock among the U.S. carriers - i.e. buy and hold for years. The rest, with their price swings, are better "trading" stocks. And as we've seen with 4 of the 6 "legacies" (5 of the current 6 if you go back a couple of decades), their stockholders can get wiped out. Something unlikely to happen anytime soon with WN.

Jim

 

[KCFlyer]

NHBB's,

FWIW, I personally see WN as the only "investment" stock among the U.S. carriers - i.e. buy and hold for years. The rest, with their price swings, are better "trading" stocks. And as we've seen with 4 of the 6 "legacies" (5 of the current 6 if you go back a couple of decades), their stockholders can get wiped out. Something unlikely to happen anytime soon with WN.

Jim

I'll differ here Jim...LUV has been pretty stagnant since 9/11. Maybe if they filed bankruptcy, Wall Street would think higher of them. Wall Street after all is all about "growth". I really don't see what's wrong with a company that makes a profit and doesn't have to go international or start service to Hays, Kansas as a "growth plan". Profits apparently don't mean diddly squat these days.

 

[BoeingBoy]

I'll differ here Jim...LUV has been pretty stagnant since 9/11.

Well, personally I consider 10-20 years as the minimum time frame to look at for "investment" stocks - unlike Wall Street which seems to look no further than next quarter or next year (which I consider "trading" time frames). For example, I've got a few "investment" stocks in my daughter's IRA that I expect to contribute to a nice retirement fund - she's 30 now - thanks to reinvested dividends/splits/slow price appreciation. I also "trade" some stocks for her, two of which she's owned for about 15 months so far (and with 70 and 100% gains I'm still thinking there some gain left, but will dump them when I think the time is right).

So my "investment" & "trading" time frames are probably longer than most people's.

Jim

 

[CynicalResAgent]

There are some WN employees that are millionaires based on their stock value. I'm talking about some very senior employees that have had stock for many years.

Compare that with US employees, many senior ones that held stock and lost a lot during BK#1.

 

[FWAAA]

I agree with BoeingBoy. And for those who agree that WN is an investment (as opposed to a speculative gamble - like other airline stocks), WN closed down about 3% today and is bumping into its 52-week low at about $13.75 or so. Time to buy more if you've got cash sitting around. If oil spikes higher, WN is better protected than just about any other airline. If oil prices collapse, look for a quick rebound to $16 or $18 or higher. Buy another 100 shares (or 1000, if you've got the money) and just let it sit. Buy and hold has worked out pretty well for stockholders of this company.

 

[Flying Photog]

WN wants their stock to remain cheap and tradable. When it gets above $20/shr they split it. Those splits are the reason that some long-time WN employees are millionaires today. And, I mean employees like flight attendants, mechanics and stock clerks--not just executives.

Sure, it may drop to $10/shr, but within a month or two it's back in the $13-$17 range. Wouldn't you like for shares that you own to rebound 30-70 per cent in a couple of months?

LUV has been virtually flat the past 5 years for those who have left their money in it. I moved my 401K and profit sharing out of LUV because it's been flat. It has been out-performed by the Dow, NASDAQ and S&P.

See chart:
http://quote.fool.com/chart.aspx?s=LUV&amp...IXIC&c=^DJI

 

[BoeingBoy]

I'll differ here Jim...LUV has been pretty stagnant since 9/11.

LUV has been virtually flat the past 5 years for those who have left their money in it.

You're both right, but 911 and it's aftermath was hopefully a one-time event. Even taking that into consideration, look how the "legacy" airlines have performed since then - either wiped out in BK or down. So in comparison, WN stock has performed pretty well.

Don't get me wrong - I'm not saying that airline stocks are necessarily good investments (as opposed to trading). Just that WN would be the one airline stock that I'd personally pick if I were looking to invest long-term in a U.S. airline. (disclaimer - I've never bought an airline stock for investment but have bought several airline's stock for trading over the years).

Jim