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Harley,
Two additional thoughts on NWAC..
1. I certainly agree as to the direction of the trend, even though the
airline is already selling at less than 1/2 its recent sock price. Wow.
Perhaps there will be consolidation in the airlines, as we are seeing in
other industries. When we see that start to happen, perhaps the trend
will reverse?
2. The rule of thumb used to be that when oil prices decline, that
airlines would profit, and the stocks of fuel dependant industries would
increase. The fact that we have been seeing the reverse testifies to the
weakness of the airline business; as you stated in your analysis.
Larry
_________
Harley Meyer wrote:
<snip>
> This is a little speculative on my part as far as timing but by end of
> year I can see NWAC near $20 per share.
> Why?
> In order of importance:
>
> 1- the global economic picture doesn't look good.
> 2 - Increased costs do to higher labor cost accompanied with decreased
> demand form passengers.
> 3 - Expenses associated with the strike.
> 4 - I am under the impression that the airlines will be increasing
> capacity by adding more planes.
> 5 - The code sharing between Continental Airlines will not go through.
> 6 - The trend is your friend.
>
> Harley
>
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<BR>Harley,
<BR>Two additional thoughts on NWAC..
<P>1. I certainly agree as to the direction of the trend, even though
the airline is already selling at less than 1/2 its recent sock price.
Wow. Perhaps there will be consolidation in the airlines, as we are
seeing in other industries. When we see that start to happen, perhaps
the trend will reverse?
<P>2. The rule of thumb used to be that when oil prices decline,
that airlines would profit, and the stocks of fuel dependant industries
would increase. The fact that we have been seeing the reverse testifies
to the weakness of the airline business; as you stated in your analysis.
<BR>Larry
<BR>_________
<P>Harley Meyer wrote:
<BR><snip>
<BLOCKQUOTE TYPE=CITE>This is a little speculative on my part as far as
timing but by end of
<BR>year I can see NWAC near $20 per share.
<BR>Why?
<BR>In order of importance:
<P>1- the global economic picture doesn't look good.
<BR>2 - Increased costs do to higher labor cost accompanied with decreased
<BR>demand form passengers.
<BR>3 - Expenses associated with the strike.
<BR>4 - I am under the impression that the airlines will be increasing
<BR>capacity by adding more planes.
<BR>5 - The code sharing between Continental Airlines will not go through.
<BR>6 - The trend is your friend.
<P>Harley
<BR> </BLOCKQUOTE>
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