I use to own luv and lost money slowly, lately I have made some good gains on AMR but I see LUV is still stinking it up. Whats is the deal, is it a good time to buy, will this ever move, is there something holding it down.
LUV is the best of breed in a lousy industry, and has not been decimated nor does it get major rallies. Its simply a very good trading stock due to its profitability, cost structure and superior balance sheet financially as well as superior in customer satisfaction surveys. IF the airline industry ever gets healthy again, LUV could rally back into the twenties. Bankruptcies and consolidation might fix the industry. Looks like America West might help mightily by consolidating US Air and Delta and America West into one! Reduce the number of competitors and watch for a rationalization of ticket prices. Both US Air and Delta had to go into BK first so killer debt and its legacy cost structure could be fixed first before an airline would want to take it over.