Cashmaker's hot stocks and trading

[cash-maker]

GYMB earnings beat Street, co raises FY view

GYMB earnings beat Street, co raises FY view

Wed Nov 16, 2005 04:34 PM ET
(Adds forecast, other details)

LOS ANGELES, Nov 16 (Reuters) - Gymboree Corp. (GYMB.O: Quote, Profile, Research) on Wednesday reported third-quarter results that beat Wall Street analysts' estimates and raised its profit outlook for the year on improved sales at its children's apparel stores.

Net income for the third quarter tripled to $12.6 million, or 39 cents per share, from $4.2 million, or 13 cents per share, a year ago.

Wall Street analysts had expected the San Francisco-based company to report earnings of between 35 cents and 38 cents per share with an average view of 37 cents per share, according to Reuters Estimates.

Total sales rose nearly 14 percent to $177.1 million, slightly ahead of analysts' average estimate of $174.8 million, according to Reuters Estimates.

Sales at stores open at least a year, a key measure for retailers, rose 10 percent during the quarter.

Gymboree said it still expects earnings from continuing operations of 37 cents to 39 cents per share in the fourth quarter.

For the year, the company forecast earnings from continuing operations of 81 cents to 83 cents a share. It had said previously that earnings would be in the range of 77 cents to 81 cents a share.

For next year, Gymboree said it expects to earn $1.03 per share to $1.09 per share, above analysts' average estimate of $1.01 per share. Costs for expensing stock-based compensation, however, will reduce earnings by 8 cents to 10 cents a share, the company said.

Gymboree shares closed at $19.62 Wednesday on Nasdaq.

My target $25 at the end of 2005, $30 next year. Tomorrow, easy to jump $1-2 like LAZ several days ago. GYMB's earning is better than LAZ and raise the outlook in 2006

 

[cash-maker]

The Gymboree Corporation upgrade on Q4 and FY 2005 EPS Outlook; Issues FY 2006 contin

The Gymboree Corporation upgrade on Q4 and FY 2005 EPS Outlook; Issues FY 2006 continue growing. GYMBOREE CORP - GYMB: Q3 Results Adj 39c vs 24c; Beats 37c Est; Raise 2006 guidance.

Easy money here. Target $25, should see $1-2 jump today. I believe GYMB's earning is much better than LAZ and GYMB 's financial ratios are more attractive with less outstanding shares. Moreover, company repurchase 55M shares started from Oct 28th 2005. My long term target for this one is $30 by 2006.

GYMB is a safe play with lot of upper space.

 

[cash-maker]

Add more GYMB shares here, no much downside risk, play with momentum. $21 today is ve

Add more GYMB shares here, no much downside risk, play with momentum. $21 today is very possible. Same pattern, samll investors sell on news in the beginning, followed by the institutional investor buy more.

 

[cash-maker]

VALUELINE raise its target on GYMB from range $17-30 last week to today's $20-$30, th

VALUELINE raise its target on GYMB from range $17-30 last week to today's $20-$30, the lowest price for GYMB in the next 12 months above $20 and the Timeliness raised to No 1. recently.

Here is the research report on GYMB on Nov 11.

Sales trends at Gymboree appear to be improving markedly. In the last three-month period, the retailer of children's clothing registered better-than-anticipated same-store sales gains, aided by a continued pickup in the boys' category. Despite certain promotional events being pushed out later in the quarter, store traffic remained brisk and gross margins strengthened. Indeed, the gross margin improvement reflects a favorable customer response to the merchandise, leading to fewer markdowns and more full-priced selling.

We've raised our earnings estimate for fiscal 2005 (ends January 28, 2006). Assuming mall traffic around the holidays doesn't slow, we expect a healthy finish to the year. Gross margins should benefit from several measures implemented recently, including supply-chain initiatives intended to lower product costs. Better coordinating the timing of product offerings with key selling seasons and running promotions at strategic times of the year are other steps being taken to shore up margins. Stable SG&A costs should increase leverage on the expense front, meantime. All told, we look for share-earnings to jump more than 55% this year. We also think a profit advance of about 23% is within reach in 2006, on wider margins and a lower share count.

Long-term growth prospects seem encouraging, given the company's two other retail concepts. So far, the Janie & Jack chain is performing well. Customer traffic at the J&J shops, which offer premium-priced, high-quality apparel and gift items for newborns and toddlers, continues to be strong. GYMB expects this division to be slightly accretive to earnings this year and more so next year. Expanding the 60-store chain to 150-200 units over the next few years should help drive sales and profits. Although too early to tell, the Janeville concept, which is still in test mode, has the potential to make contributions in the coming years, as well. This assumes its line of casual apparel is accepted by its target market, women in their 30s.

 

[cash-maker]

ValuEngine gives 3 stars to GYMB with all positive forecast: Target $25 in the next 1

ValuEngine gives 3 stars to GYMB with all positive forecast: Target $25 in the next 12 month period:

Target Price* Expected Return
1-Month 19.71 0.45%
3-Month 19.84 1.10%
6-Month 20.21 3.03%
1-Year 20.66 5.32%
2-Year 21.39 9.04%
3-Year 23.93 21.98%


ValuEngine Smart Ratings
Very Attractive: To Day Traders
Very Attractive: To Momentum Investors
Attractive: To Market Leader Investors
Attractive: To Growth-at- Reasonable-Price Investors
Neutral: To Balanced Investors
Neutral: To Classic- Value Investors
Neutral: To Conservative Investors

I bet GYMB still cheap at $20 level, will hold it until at least $23

 

[cash-maker]

In IM and EMC here, both software industry and hightech company with strong financial

In IM and EMC here, both software industry and hightech company with strong financial. IM improve its revenue growth and profit margin and EMC square is well known with strong earning background. Both of these two stocks heavily undervalued.

 

[cash-maker]

Buy some LSI shares follow my TA model alert. Very good bottom formed with good earni

Buy some LSI shares follow my TA model alert. Very good bottom formed with good earning recently.

LSI is well positioned to extend its leadership role in the storage market. In the RAID segment, its 1078 system chip continues to exceed expectations in both silicon readiness and in execution. Design wins for next-generation connectivity products (serial attached SCSI) continue to rise at a brisk pace, which augurs well for this quickly growing market. LSI is doing well in the RAID host bus adapter area, as well. As business in the white box server market grows, it should yield incrementally higher margins. New product releases should help boost revenues on the storage system side, too.

LSI's investments in the consumer business should pay off. This unit experienced robust gains of 22%, year over year, in the June quarter, and new orders here promise further strength ahead. The DVD recorder market should be a big boon. Analysts look for this market to double in 2005, with LSI taking about a 45%-50% share. Design wins for its single-chip processor designed for combination units, which contain both a DVD recorder and a DVR (uses a hard drive), have been good. Analysts look for this market to grow substantially over the next 12 months.

RapidChip (RC) seems to be gaining traction. This line combines the high-performance benefits of ASIC chips with the quick time-to-market and customization attributes of field-programmable gate arrays. The affordability of RC should make it a hit with small and mid-sized businesses. Larger customers, too, appear to be interested in using RC as a development platform. They would still switch over to ASIC at some point, but be able to reach full-volume production in a fraction of the time. Analysts look for RC volume to ramp up in the coming quarters.

Profitability should rise. R&D will probably remain high, but the operating line should benefit from lower SG&A outlays. A reduction in depreciation expense is probable, too, due to the impairment of the Gresham facility. All told, share profits should make sizable gains in 2005 and 2006.

Timely LSI stock has strong appeal, thanks to the good earnings growth prospects. If LSI rebounce, it maybe test $10 soon.

 

[cash-maker]

Add more shares SCS with its business growth and TA timliness.3 month chart looks luc

Add more shares SCS with its business growth and TA timliness.3 month chart looks lucrative.

Also built more position on LSI, my TA model shows a bottom play here. LSI valued by Valueline with target $17 to $30 with timeliness 2. I am bullish here.

Steelcase's Think(R) Chair Wins the Design for Asia Award

543 words
21 November 2005
07:00 am
PR Newswire (U.S.)
English
Copyright © 2005 PR Newswire Association LLC. All Rights Reserved.

GRAND RAPIDS, Mich., Nov. 21 /PRNewswire-FirstCall/ -- Steelcase Inc. , a global office environments manufacturer, today announced that it has been selected as a recipient of the 2005 Design for Asia Award, an international design competition sponsored by the Hong Kong Design Centre, that awards companies for designs that reflect, or have an impact on, the Asian lifestyle. Steelcase received this distinction for the Think(R) chair - a smart, simple and environmentally sustainable seating product.

Created in collaboration with designer Glen Oliver Low, McDonough Braungart Design Chemistry and the Institute for Product Development in Copenhagen, the Think chair conforms to the highest environmental standards and raises the bar in cradle-to-cradle design and life-cycle thinking. Think addresses the growing need for ergonomic seating and was lauded at the Design for Asia Awards ceremony as an outstanding achievement in design.

The Think chair provides ultimate support for a full range of postures, allowing users to stay focused without distraction or fatigue. Combined with an elegant and innovative design, the Think chair also adheres to the toughest environmental standards, including Japan's "Green Purchasing Law," which was designed to increase the percentage of materials and parts that have a reduced environmental impact and have the ability to be completely recycled (cradle- to-grave development process).

"It is an honor to receive the Design for Asia Award, which is recognized as one of the most prestigious international awards in design," said James Ludwig, Director of Design for Steelcase. "This award pays tribute to Steelcase's ability to create user-centered products that combine aesthetic appeal with function and environmental sensibility, attributes that are extremely important to the Asian market."

The Think chair officially launched in Asia in March 2005 and was met with great success. The chair experienced double digit growth in Japan this year and Steelcase expects similar growth in the Asian market over the next few years. Based on the chair's success in Asia and North America, the Think chair also debuted in Australia this past August.

The Design for Asia Award is dedicated to promoting design excellence and seeks to raise awareness that good design is an important factor for business success. Judged on the design's excellence, its impact and influence within Asia and on Asian lifestyles, and the commercial success of the design, Steelcase's Think chair was chosen from over 500 entries (including apparel and accessories, communication, interior/spatial, and product designs) from North America, Europe and Asia.

 

[cash-maker]

CHB, a Hurricane play, easy money here.

CHB, a Hurricane play, easy money here.
Now the whole Louisiana (and some other states) need to be rebuilted in a short time under government's funding. The demand side on the factory-built homes is enormous (more than you can imagine).CHB is the number one factory-built homes company and has strong relationship with government. I bet most of the factory-built homes order will give to CHB.

Here is the proof: CHB recently received a $60 million order for 2,000 single-section manufactured homes from FEMA, in connection with Hurricane Katrina relief efforts, which should lift CHB's top and bottom lines during the final stanza of 2005. Excluding the FEMA order, Champion's backlog at the end of the third quarter was up 47%, relative to the year-ago figure. However, with the FEMA request taken into account, third-quarter backlog jumped an impressive 97%.

I will say even $30 for CHB won't suprise me. It is so cheap here, good time to buy.

 

[cash-maker]

$2 for a Pillow? Pillow can tell the story about the efficiency. LUV is still the bes

$2 for a Pillow? Pillow can tell the story about the efficiency. LUV is still the best discount airline in US.

The legacy airlines have become no-frill airlines while the discounters such as Southwest Airlines and jetBlue Airways now offer more perks and free services. For example, most domestic flights on American, Northwest and Delta Air Lines don't have pillows anymore. But Southwest does.

The Middle Seat: Latest Inflight Fee: $2 for a Pillow --- Fuel Costs, Competition Spur Airlines to Yank More Perks And Add Even More Fees

By Scott McCartney
894 words
22 November 2005
The Wall Street Journal
D5
English
(Copyright (c) 2005, Dow Jones & Company, Inc.)

THE FEE FRENZY at many big U.S. airlines is increasing: as of this month, a pillow on most Air Canada flights costs you $2. And a seat in the exit row (with more leg room) on most United flights now has a price tag of between $24 and $99, unless you're an elite-level frequent flier.

That isn't all. It costs $2 (plus tip) to use the services of a skycap to check a bag at some airports on American Airlines, UAL Corp.'s United Airlines, Northwest Airlines, US Airways and Alaska Airlines, a division of Alaska Air Group Inc. Northwest is charging $1 for some trail mix to go with your beverage. Both American and Northwest have stopped serving pretzels to coach passengers on many domestic flights. And keep your wallet handy when you head to the airport this Thanksgiving -- several carriers recently started charging $25 to confirm a seat on a different flight if you want to get home early.

Big carriers once positioned as full-service providers have slashed amenities for coach passengers and found more services for which they can charge added fees. With fuel prices high and fare prices low, big airlines have continued to pile up billions in losses despite slashing billions of costs from their operations through lower pay, less-expensive airplane leases and more productivity. So they are seeking added revenue wherever they can.

As a result, the legacy airlines have become no-frill airlines while the discounters such as Southwest Airlines and jetBlue Airways now offer more perks and free services. For example, most domestic flights on American, Northwest and Delta Air Lines don't have pillows anymore. But Southwest does.

 

[cash-maker]

JDSU, TheSUBWAY.com Posts Stock Pick List: New Deal for New Subsidiary!

JDSU, TheSUBWAY.com Posts Stock Pick List: New Deal for New Subsidiary!

652 words
22 November 2005
Market Wire
English
(c) Copyright 2005 Market Wire, Inc.

NOTE TO EDITORS: The Following Is an Investment Opinion Being Issued by Peter Antipatis of Capital Research Group Inc.

WESTON, FL -- (MARKET WIRE) -- Nov 22, 2005 -- TheSUBWAY.com names the following stocks to its Stock Pick List: Genesis Technology Group, Inc. (OTC BB: GTEC), JDS Uniphase Corporation (NASDAQ: JDSU), eBay Inc. (NASDAQ: EBAY), CIENA Corporation (NASDAQ: CIEN).

Genesis Technology Group, Inc. (OTC BB: GTEC) announced that the World Bank Group has invested $4.6 million in the China Vocational Education Satellite Network, the contract partner to its new subsidiary, Genesis Distance Learning Division (GDLD). Genesis management has estimated that its contract could have a value exceeding $10 million in profits for the Company in an industry estimated to yield billions of dollars globally.

Other stocks highlighted include JDS Uniphase Corporation (NASDAQ: JDSU): Stock Pick List, up 7% on 54 million shares; eBay Inc. (NASDAQ: EBAY): Stock Pick List, up 2% on 18 million shares; CIENA Corporation (NASDAQ: CIEN): Stock Pick List, up 3% on 7 million shares.

"Analysts are continuing the debate on the fate of the market in the near term, some saying a traditional spring rally is in store, while others say the market must further consolidate its recent gains. To this end, investors will be highly focused on corporate announcements and the release of any economic data that could shed light on the state of the U.S. economy, and the renewed growth phase it has been enjoying." More is available at: http://www.thesubway.com .

 

[cash-maker]

Steelcase wins tax appeal 2 Million dollars

Steelcase wins tax appeal 2 Million dollars

The Grand Rapids Press
108 words
21 November 2005
The Grand Rapids Press
All Editions
B3
English
© 2005 Grand Rapids Press. Provided by ProQuest Information and Learning. All rights reserved.

KENTWOOD -- Kentwood Public Schools has to return $2 million in property taxes to Steelcase Inc. The district was ordered to do so by the Michigan Tax Tribunal. Steelcase argued city assessors overestimated the value of company properties. Of the $2 million, the school district will be reimbursed $1.433 million by the state, However, it still will lose $592,783 in interest and from debt, building and site funds. The practice of contesting property values has become increasingly common among businesses, and hurts cash- strapped districts and other institutions dependent on taxes, Assistant Superintendent Steve Zakem said.

 

[cash-maker]

Add more shares IM here, target >$20 in two weeks. Zacks also gives a Strong Buy last

Add more shares IM here, target >$20 in two weeks. Zacks also gives a Strong Buy last week. IM and EMC are now my two major positions in software sector.

Zacks Buy List Highlights: CommScope, Inc., Ingram Micro Inc., Rockwell Automation, Inc., and Too, Inc.

(c) 2005 Business Wire. All Rights Reserved.

CHICAGO - (BUSINESS WIRE) - Nov. 23, 2005 - Zacks.com releases another list of stocks that are currently members of the coveted Zacks #1 Rank (Strong Buy) List. The #1 Rank stocks highlighted today are CommScope, Inc. (NYSE:CTV) and Ingram Micro Inc. (NYSE:IM). Further, Zacks announced #2 Rankings (Buy) on two other widely held stocks: Rockwell Automation, Inc. (NYSE:ROK) and Too, Inc. (NYSE:TOO). To see the full Zacks #1 Rank (Strong Buy) List, or the rank for any other stock, visit: http://at.zacks.com/?id=88

Stocks ranked #1 (Strong Buy) by Zacks have produced an average annual return of +33% since inception in 1988. During the 2000-2002 bear market, Zacks #1 Rank stocks gained 43.8% while the S&P 500 tumbled 37.6%.

Here is a synopsis of why CTV and IM have a Zacks Rank of 1. Note that a #1 Strong Buy rating is applied to only 5% of all the stocks Zacks ranks:

CommScope, Inc. (NYSE:CTV) recently reported third-quarter adjusted earnings of 34 cents per share, surpassing the consensus estimate by almost 26% and improving on last year's result. The company commented that it managed costs effectively, achieved operating profits in all segments, including the Carrier segment, and expanded overall operating margins. Earnings estimates for the year ending December 2005 moved up seven cents, or almost 8%, form one month ago.

Ingram Micro Inc. (NYSE:IM) recently posted third-quarter non-GAAP earnings of 36 cents per share, beating last year's 21 cents and jumping ahead of the consensus estimate by roughly 16%. The company stated that over the last eight quarters it has consistently delivered solid sales growth, and this quarter IM drove much of it to the bottom line. The company issued a fourth-quarter earnings guidance of 47 cents to 50 cents. Current Wall Street estimates are 48 cents per share, which is almost 7% more than the forecast of one month prior.

Here is a synopsis of why ROK and TOO have a Zacks Rank of 2 (Buy). Note that a #2 Buy rating is applied to 15% of all the stocks ranked by Zacks:

Rockwell Automation, Inc. (NYSE:ROK) recently reiterated its earnings guidance of $3.00 to $3.10 for the year ending September 2006. Current analysts' expectations of $3.07 per share are almost 2% above one month ago levels. In early November, the company announced fiscal fourth-quarter earnings of 69 cents per share, matching the consensus estimate and topping last year's total.

Too, Inc. (NYSE:TOO) recently released fiscal third-quarter earnings of 48 cents per share, exceeding the consensus estimate by almost 12% and outperforming the year ago total of 33 cents. The company expects earnings of 80 cents to 82 cents per share for the fourth quarter. Wall Street projects 81 cents, almost 4% above last week's estimates.

Truly taking advantage of the Zacks Rank requires the understanding of how it works. The free special report, "Zacks Rank Guide: Harnessing the Power of Earnings Estimate Revisions," provides an insightful background about this wealth-building tool. Download your free copy of the report now to prosper in the years to come by visiting http://at.zacks.com/?id=93 .

 

[cash-maker]

SCS good buy here, TA model alert uptrend chart, just like my model alert AIRT when i

SCS good buy here, TA model alert uptrend chart, just like my model alert AIRT when it was $11. My model doing pretty good at short term TA alert with thin volume stocks.

Also Zack shows that mean recommendation is 1.5, very close to strong buy 1.

Zacks Rank 3
Target Price Consensus 17.33
Last Quarter (200508) EPS .13
Last Quarter EPS Surprise -7.14%
Avg. Broker Recommendation 1.5
(1 = strong buy)

I am bullish on SCS here. Holding shares tight, waiting for my meat.

 

[cash-maker]

Ravenswood Investment Company holding CHB position under its aggrasive growth investm

Ravenswood Investment Company holding CHB position under its aggrasive growth investment stratergy.

DJ TIP SHEET: Ravenswood Investment Patiently Satisfies

By Alex Davidson Of DOW JONES NEWSWIRES
675 words
22 November 2005
06:42 pm
Dow Jones Chinese Financial Wire
English
Copyright (c) 2005, Dow Jones & Company, Inc.

NEW YORK (Dow Jones)--Robert Robotti, managing member of The Ravenswood Investment Company, L.P, combines the aggressive nature of a hedge fund with the patience of a mutual fund to form a unique investment partnership.

Ravenswood, which includes an investment advisory business and a broker/dealer arm, acts like a hedge fund by buying stocks with the potential to double in three years, charging a performance fee and setting a minimum initial investment sum.

But Robotti said Ravenswood should not be lumped with other hedge funds because of its longer-term approach and multi-faceted operations.

'It is an investment partnership,' Robotti said. 'Ravenswood differs in many ways from the other investment partnerships that are multiplying the way the world fears the Asian bird flu might multiply.'

'Our investment approach is more sane and reasoned, and time tested as to produce returns above the indices with less volatility.'

Indeed, during the past three years as of Oct. 31, Ravenswood posted a net rate-of-return of 32%, compared with the S&P's 3.6% increase in the same period.

For the last 12 months, Ravenswood has a 31% return rate, versus the S&P's 11% rise, and the year-to-date net return for Ravenswood is 17%, ahead of the S&P's 1%.

As of June 31, Robotti said Ravenswood holds 81 positions with $169 million in assets, excluding holdings in pink sheets, cash and cash equivalents and foreign holdings.

To get to this point, Robotti said Ravenswood has focused on growth opportunities in industries like manufactured housing.

One company Ravenswood has bought a significant position in during the last two years is Decorator Industries Inc. (DII), listed on the American Stock Exchange. Ravenswood owns about 20% of the company and started buying shares when they were near the $2 level, below its current $8.

'We think the industry makes sense long term,' Robotti said. 'Where it is today, it's at the bottom of a cycle and we think there's room for improvement.'

Robotti said Decorator Industries has bounced back from a sector-wide depression along with its peers and is currently operating at 40% capacity with little debt - leaving a lot of room for the company, and investors, to benefit from improvements.

'The incremental kick to earnings will be very substantial' when the company's at higher capacity, Robotti said.

Other manufactured housing companies Ravenswood owns positions in include Fleetwood Enterprises Inc. (FLE), Champion Enterprises Inc. (CHB), Cavalier Homes Inc. (CAV) and Skyline Corp. (SKY).

 

[cash-maker]

Out all GYMB and ACN, double my position on LUV and FLEX and CHB.

Out all GYMB and ACN, double my position on LUV and FLEX and CHB.

Oil price down to $56 range, will go down more. Although LUV hedge the oil risk, the lower oil price will lift the airline sector in a certain level. The whole airline industry recovering since recently with summer oil crisis bursted.

FLEX will benifit on XBOX360 and Euro headset and cellphone companies' big order. And FLEX invest hefty in Indian and CHina to reduce the cost in order to keep the market shares and competition.

CHB received FNMA's contract shows the relationship with government. To rebuit some states within a short time is impossible unless use factory-built house and I believe this is what the government will do. CHB go to $30 won't surprise me at all.

 

[cash-maker]

Great news to Southwest Airline: Bush signs bill exempting Missouri from Wright Amend

Great news to Southwest Airline: Bush signs bill exempting Missouri from Wright Amendment.Southwest to Fight American On Dallas-to-Missouri Routes

By SAM HANANEL
Associated Press Writer
482 words
30 November 2005
06:55 pm
Associated Press Newswires
English
(c) 2005. The Associated Press. All Rights Reserved.

WASHINGTON (AP) - It's official -- Missourians are now free to fly to Dallas on Southwest Airlines.

President Bush signed a transportation bill Wednesday that allows air travel between Love Field airport in Dallas and points in Missouri for the first time since the Wright Amendment restricted flights 26 years ago.

Southwest officials are now rushing to add daily service from Love Field -- home base of the low-cost carrier -- to Kansas City and St. Louis. The airline is expected to announce details this week.

"It would certainly be our hope to get the service started by the end of the year," Southwest Airlines spokeswoman Beth Harbin said Wednesday. "It's exciting for Southwest and customers in Missouri who are finally going to get low-fare access to Dallas."

Harbin said the company already has an ad campaign in the works that's been waiting for the bill to be signed.

The Wright Amendment was designed to help growth at newer Dallas-Fort Worth International Airport -- home to American Airlines -- when it was built in the 1970s. The restriction said airlines at Love Field could only fly within Texas, its four neighboring states and Kansas, Mississippi and Alabama.

Earlier this year, Sen. Kit Bond, R-Mo., inserted a provision into the annual transportation spending bill making Missouri the ninth state to be exempt from the law.

The move is expected to bring dramatically lower air fares to Missouri, where Southwest is the largest carrier at Kansas City International Airport and the second largest at Lambert-St. Louis International Airport.

Minutes after the bill-signing was official, American Airlines announced plans to compete with Southwest from up to three gates at Love Field.

"Following up on its recent meeting with Dallas Love Field Airport officials, American Airlines today formally notified the airport that it intends to start service from Love Field as soon as it can obtain and prepare appropriate facilities," American spokesman Tim Wagner said.

He said the airline would announce a schedule soon. The company has spent years fighting any repeal of the Wright Amendment, fearing it could lose hundreds of millions a year.

Wagner said opening up Love Field to Missouri flights is significant because many travelers from St. Louis and Kansas City visit the Dallas area and don't just connect with other flights.

"We are afraid those travelers will move over to Love Field because it is closer to downtown Dallas," Wagner said. "There's quite a bit of that local traffic. That's what we've said we'll need to protect."

American lowered its fares to St. Louis and Kansas City in early October, but Wagner said the move was unrelated to the Wright Amendment exemption. American now offers 11 daily flights from DFW to Kansas City and 13 to St. Louis.

 

[cash-maker]

US Airline Industry Poised For Upturn -Analyst

US Airline Industry Poised For Upturn -Analyst


11-30-05 02:42 PM EST
CHICAGO -(Dow Jones)- Having lost $22.3 billion since 2001, the U.S. airline industry now is ready to take off, thanks in part to this year's high fuel prices, according to a research analyst.

"Currently, we believe that the industry is at an inflection point, and could be positioned to accumulate substantial profits over the next couple of years," Stefan Lumiere, special situations analyst at Oscar Gruss & Son, a New York research firm, wrote Wednesday.

Airline passenger revenue hasn't kept pace with the economy, Lumiere wrote. Today, passenger revenue is 0.65% of U.S. GDP, down from 0.95% in 1995. Low-cost airlines have driven ticket prices down across the industry, the analyst said. Lower revenue left many of the major airlines vulnerable to the recent spike in the cost of jet fuel, forcing two of them into bankruptcy.

But, he said, "In addition to low-cost carriers, we believe that skyrocketing fuel prices have been a blessing in disguise for all carriers." The industry not only has cut costs quickly, but has raised ticket prices, he said.

Major airlines in bankruptcy, including United Air Lines, a unit of UAL Corp. (UALAQ), Delta Air Lines Inc. (DAL) and Northwest Airlines Corp. (NWAC), along with US Airways (LCC), which recently emerged from Chapter 11 reorganization, have cut unprofitable routes and renegotiated expensive labor contracts. That's put them in a competitive position with low-cost leaders like Southwest Airlines Co. (LUV) and JetBlue Airways Corp. (JBLU).

At the same time, consumers now believe that airlines need to raise fares to cover rising costs, Lumiere said. For the first time in a long while, higher airline ticket prices will "stick," he believes. "If energy prices subside, margins should expand, thereby resulting in greater profitability for the airlines."

Investors should keep some competitive issues in mind, Lumiere said. First, fuel hedges enjoyed by some airlines will gradually be rolling off, making a more level playing field for carriers like Southwest Airlines, which has enjoyed a significant fuel-cost advantage. But some carriers operate much more fuel- efficient fleets. JetBlue has the most efficient and the youngest fleet of all domestic carriers, Lumiere wrote.

Lumiere on Wednesday initiated coverage on most U.S. airlines and several foreign carriers. But, despite his bullish stance on the industry, he hasn't rated individual stocks. He said it would require more in-depth analysis of off- balance-sheet items and operations excluding hedging contracts, as well as a thorough examination of the indentures and covenants.

-By Ann Keeton

 

[cash-maker]

Southwest Airlines Announces New Nonstop Service From Dallas Love Field to Kansas Cit

Southwest Airlines Announces New Nonstop Service From Dallas Love Field to Kansas City and St. Louis





12-01-05 10:10 AM EST | New Law Makes St. Louis and Kansas City Southwest's First New Nonstop Routes From Love Field in 25 Years

/PRNewswire-FirstCall/ -- President George W. Bush recently signed a transportation appropriations bill containing language that exempts Missouri from federal restrictions placed on Dallas' Love Field airport. This exemption now makes it possible for Southwest Airlines (NYSE: LUV), the signature carrier at Love Field, to initiate new nonstop jet service from Dallas to its Missouri operations in Kansas City and St. Louis.

Southwest will start service to St. Louis and Kansas City from Dallas on Dec. 13, 2005, with four daily nonstop flights to each city. The one-way fare from Dallas to either city will be just $79 with 14-day advance purchase. The unrestricted "walk-up" fare is just $129 each way, compared to fares as high as $599 each way on American Airlines.

"Southwest Airlines has served Missouri for more than 20 years but Congress has prevented us from offering low-fare service between Missouri and our home airport at Dallas' Love Field," said Herb Kelleher, Southwest's executive chairman and co-founder. "Missouri has been punished far too long by the resulting high-fare monopoly. We are delighted by Senator Bond's efforts to wipe out the last vestige of airline regulation for the people of Missouri."

Under the leadership of Senator Christopher "Kit" Bond (R-MO), Missouri has been added to the list of states eligible for nonstop commercial air service from Love Field. Since 1979, nonstop service from Love Field has been restricted to Texas and its four surrounding states due to the Wright Amendment, named for then-Speaker of the House Jim Wright who sought to protect Dallas/Ft. Worth International (DFW) Airport. In 1997, Senator Richard Shelby (D-AL) succeeded in adding Alabama, Mississippi, and Kansas to the list. The "Bond Amendment" of 2005 allows competitive air service at Love Field to reach one state further.

"When these two Missouri airports gain new Southwest Airlines service, history tells us that airport traffic will increase as more people are able to fly at a lower price," Kelleher said.

A study by the Campbell-Hill Aviation Group, commissioned by Southwest Airlines, predicts nearly 500,000 additional Missouri passengers per year will be generated through fare savings estimated to be more than $77 million. The US Department of Transportation calls this well-documented stimulation of passenger traffic through low fares the "Southwest Effect." Campbell-Hill also predicts an additional $218 million per year will go to the Missouri economy in related spending.

All eyes will be on Missouri to see if the venerated "Southwest Effect" takes hold in an established market. History, and Southwest Airlines, say that it can. "They don't call Missouri the 'Show Me State' for nothing!" Kelleher said. "The push from Missouri allows us to create a competition laboratory, if you will, to prove our case. Our experience in 60 other markets tells us that all carriers serving these markets will decrease their fares and increase their Missouri traffic. I can't think of a state that wouldn't want that."

Southwest Airlines, the nation's largest carrier in terms of domestic passengers enplaned, currently serves 61 cities in 31 states. Based in Dallas, Southwest currently operates more than 2,900 flights a day and has 31,000+ Employees systemwide.

Fare Rules

Fares are available one-way and are combinable with all other fares. When combining fares, all ticketing restrictions apply. The fares are available for purchase today through the end of Southwest's published schedule (currently March 31, 2006). Tickets must be purchased at least 14 days before departure. Seats are limited. Fares may vary by flight and day of week and will not be available on some flights that operate during very busy travel times. Fares do not include a $3.20 federal segment tax per takeoff and landing. Fares do not include airport-assessed passenger facility charges (PFC) of up to $9 one-way and a U.S. government-imposed September 11th Security Fee of up to $5 one-way. Fares are subject to change until ticketed. Tickets are nonrefundable but may be applied toward the purchase of future travel on Southwest Airlines. Fares are valid on published, scheduled service only. Any change in itinerary may result in an increase in fare.

 

[cash-maker]

Out half LSI, 10% for a week. My TA model showing the presure at $8.7. Long term is s

Out half LSI, 10% for a week. My TA model showing the presure at $8.7. Long term is still good, but just out some follow my model alert. Will buy back more if it down to around $8.3. Up too much a day for 6%, maybe pull back tomorrow.