SJCguy From United States of America, joined Apr 2001, 579 posts, RR: 1 Posted (12 years 9 months 1 day 13 hours ago) and read 1204 times:
From the San Francisco Chronicle today Dec. 26, 2001
"...By last week, Southwest's value had soared past $14billion, topping the combined values of American Airlines, United Airlines, Delta Air Lines, Continental Airlines, Northwest Airlines, and USAirways..."
As a Southwest employee, reading this just gives me chills and I can't help but brag. It is so great working for a company that is doing so well in light of all the industry's fallouts, and having fun while doing it! To all my fellow Southwest Employees, keep up the good work, and to all of our loyal Passengers, thanks for flying with us! Southwest will NEVER let you down...
Yyz717 From Canada, joined Sep 2001, 16282 posts, RR: 56
Reply 1, posted (12 years 9 months 1 day 13 hours ago) and read 1178 times:
Interesting but scary. Generally, total capitalization of a company should approximate their revenue and/or earnings (RPS or EPS).
So, we have either SWA currently grossly overvalued (despite Sept 11) or the other airlines collectively grossly undervalued (due t Sept 11). Suggests to me that in the near term SW is due for a share price fall and the other majors an increase.
We have the same phenon in Canada. Westjet (with about 7% the revenue of AC and about 10% the fleet size) has a larger market cap than AC right now.
Having said all this, the 2 airlines I would buy stock in right now are SWA and Westjet!
Panam, TWA, Ansett, Eastern.......AC next? Might be good for Canada.
Greg From United Kingdom, joined May 2005, 0 posts, RR: 0
Reply 3, posted (12 years 9 months 1 day 5 hours ago) and read 1122 times:
I own some Southwest shares that I bought about five years ago when I was into transportation stocks. You're right, they have done very well.
JetBlue is a little more interesting since they have some very expensive operating leases and are likely highly leveraged. Cheap fares make for very small margins. If you ask a broker, they will probably have a 'wait and see' attitude before suggesting buying on the initial IPO.