I'm keep looking for a reasons why it shouldn't go higher
Four years of consistent earnings, 2013 eps should be $3+ (75% of the earnings taxed, so really $4+ for comparison purposes), only a 6 p/e after tax in an industry in an up-cycle, ... so, tell me some negatives.
As always, the greatest risks are systematic risks, These can be hedged in a variety of ways. I do expect higher oil this summer (as always), but down again mid-September, so depending on your investment time frame ...
LCC (now LCC + AMR) deserves the lowest PE multiple in the industry. Very poor balance sheet, LCC operations are "worst of breed" (MAYBE better with AMR) and the costs & disruptions of merging still lie ahead.
None-the-less, LCC is likely to see a rising PE as long as profits rise. Memories are short on Wall StreetL LCC is the highly leveraged stock and this could benefit longs in the
COO presenting Wednesday, if he says 2q and summer lookin good as DAL did this week, pps will keep rising barring market pullback which is overdue or blowup in MEasat.I am still waiting for a short squeeze, thought would come this week...Kirby said fuel savings would flow to bottom line as long as demand holds up, but he did not say whether demand was holding up...COO will most likely comment on current demand and summer outlook.