i have been in and out of this stock for years and have considered it a good friend. great product, excellent niche. IMHO i would wait to buy at the 14-14.5 range. this stock will follow the industry to a point, regardless of whether they do or don't tack on the surcharge. good luck to all.......holger
As I said, I think the odds are now good that we will test the 52-week low of 14 3/8. My reason is simple, oil at a nine-year high will mean NO profit growth for LUV in Y2K. Unfortunately, LUV doesn't hedge much to protect itself from rising fuel costs. The entire industry is hurting at this point, but LUV more than others from fuel costs.
Having said this, I had to buy a block at 15 3/8 just to get back in at this low price. I realize that I will have a good chance to buy more at 14 3/8, and even possibly lower. But hey, LUV is the best, period, in airlines and no matter how much altitude it loses, it will climb back (and usually quickly). My outside prediction on the downside assuming oil continues to rise and LUV gets hammered along with the rest of the industry is 12. If it goes below that (and I have already bought at 15/14/13/12 3/8), I'll put 100% of my active account in this stock, because I'm a believer!