BloggingStocks

Resources Connection (RECN): Price in bullish 'flag' formation

Larry Schutts — 2008-07-21T14:32:00+00:00

Filed under: Earnings reports, Analyst upgrades and downgrades, Southwest Airlines (LUV), Technical Analysis, Stocks to Buy

Resources Connection (NASDAQ: RECN) provides professional services to corporations, in support of client-led projects and initiatives. Areas of expertise include finance, accounting, risk management, internal auditing, information technology, human resources, supply chain management, and legal matters. The firm serves 2,400 companies from more than 80 offices around the world. The client list includes Southwest Airlines (NYSE: LUV) and Exelon Corporation (NYSE: EXC).

Resources Connection pleased investors last week, when it reported fiscal Q4 EPS of 35 cents and revenues of $236.7 million. Analysts had been expecting 28 cents and $228.0 million. During the quarter, the company repurchased about 1.1 million RECN shares. Deutsche Securities subsequently reiterated its "buy" rating on the issue.

The stock popped on the news and then moved into a bullish "flag" consolidation pattern. Prices frequently exit flags moving in the same direction they were traveling on entry. In this case, that would be to the upside.

Brokers recommend the shares with one "strong buy", one "buy" and eight "holds". Analysts expect an 18% average annual growth rate, through the next five years. The RECN PEG ratio (1.08), Price to Sales ratio (1.09), Sales Growth rate (18.05%) and Return on Assets (11.94%) compare favorably with industry, sector and S&P 500 averages. Over the past 52 weeks, RECN has traded between $15.39 and $34.74. A stop-loss of $19.85 looks good here.

Larry Schutts is a contributing editor for Theflyonthewall.com and the Vice-President of Stockwinners.com. He does not hold positions in any of the stocks mentioned above.

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Will Bush throw a change-up at Yankee Stadium?

Sheldon Liber — 2008-07-15T14:45:00+00:00

Filed under: Other issues, Rants and raves, JPMorgan Chase (JPM), Charles Schwab Corp (SCHW), Merrill Lynch (MER), Southwest Airlines (LUV), Wells Fargo (WFC), Politics, Presidential elections, Commodities, Lehman Br Holdings (LEH), Federal Reserve, Recession

There are many ironies in the fact that President George W. Bush will throw the first pitch at Major League Baseball's All-Star Game in New York. For one, President Bush is the first managing general partner of a Major League team (the Texas Rangers) to become President of the United States.

President Franklin Roosevelt was the first to attend an All-Star Game and throw out the first pitch, starting the tradition. He too had to deal with a poor economy and by the time he threw out that first ball the groundwork was being laid for World War II. President Bush has had to contend with his own war.

While there are differing views as to whether we should have gone into Iraq and whether we should stay or get out, this will always be viewed as George's war, fair or not. And the state of our economy in 2008 will also be viewed as George's economy, fair or not.

The ultimate irony for me is that Yankee Stadium is scheduled to be torn apart at the end of the season. This is YANKEE Stadium and the last president to set foot in it will be George W. Bush. The stadium with the greatest heritage in baseball, the 'House That Ruth Built', is going to be torn apart while our economy is also being torn apart. It is being torn out at its roots.

Major manufacturing jobs are being lost every day. But that's not the roots. The financial sector is crumbling to dust, but that is not the roots. Housing and construction are gasping for air. But that is not the roots. The roots of the United States of America have been and always will be the people and their ideas. We are a nation founded on ideals and ideas. These are being tested severely.

The negativity in the marketplace creates a dampening of our spirit but not the end of our reign as a nation of ideals and ideas. The confidence that people are lacking and that the Federal Reserve is trying to shore up will be restored, even as things are at their worst.

In my mind, President Bush has been a man with ideals. Unfortunately, he has not been a man with many ideas nor has he had much respect for people of differing ideas. This was underscored by the trio of "my way or the highway" guys -- Dick Cheney, Donald Rumsfeld and Karl Rove.

However, when Bush throws that baseball it will symbolize to me the rounding of third base for his administration, the end of a grand piece of Americana and the bottom of our recession. A new president, be he Democrat or Republican, will bring new ideas and a new stadium and be the beginning of a new era. The bottoming out of our bad situation does not mean a rapid rise but we are a nation of success stories and the new stories will soon be set in motion even as the old ones wear on. But it is hard to see it sometimes when you are in the middle of the storm.

Food for thought:

When folks are taking money out of one bank they are usually putting it in another. That we have not read about. Are deposits increasing at J. P. Morgan Chase (NYSE: JPM) or Wells Fargo (NYSE: WFC)? A quick call to my Wells Fargo VP, Sherry, informed me deposits have been on the rise, significantly.
Brokerage houses and investment banks like Merrill Lynch (NYSE: MER) and Lehman Brothers (NYSE: LEH) are suffering but Charles Schwab (NASDAQ: SCHW) did not stick its neck out and looks to clean up going forward.
After the airlines go down for the third time, what will emerge? Is the stage being set for Southwest Airlines(NYSE: LUV) to make another three decade run?

While the economy is doing poorly, many sectors are built to last and have the cash to back it up. Pharmaceuticals, energy, software, metals, defense, food, communications and many more are down but will continue to prosper even if it is at a slower pace.

By the time the "Boys of Summer" start spring training next year everything will look very different.

Sheldon Liber is the CEO of a small private investment company and the principal for design and research at an architecture & planning firm. He writes the columns Chasing Value and Serious Money. Disclosure: I own shares of WFC.

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Cramer on BloggingStocks: The breadth of the danger is staggering

Jim Cramer — 2008-07-15T08:56:00+00:00

Filed under: Bad news, Industry, Ford Motor (F), General Motors (GM), Market matters, Citigroup Inc. (C), Advanced Micro Dev (AMD), Regions Financial (RF), AutoNation Inc (AN), Bank of America (BAC), BB and T (BBT), Merrill Lynch (MER), Sears Holdings (SHLD), Federal Natl Mtge (FNM), Comerica Inc (CMA), D.R.Horton (DHI), Amer Intl Group (AIG), Lennar Corp'A' (LEN), Southwest Airlines (LUV), Wachovia Corp (WB), Washington Mutual (WM), IndyMac Bancorp (IMB), Lehman Br Holdings (LEH), Cramer on BloggingStocks, MBIA Inc (MBI)

TheStreet.com's Jim Cramer says our problems are so widespread, he sees lots more IndyMacs before we're out.

You don't need me to tell you it's awful out there. You don't need me to tell you that there's no quick fix for any of these things. But what might help you understand why it feels so bad this time is that I have never, in my career, seen so many companies go off track at the same time. This is one unbelievable moment, and it is made more horrible by the day as companies' stocks just get pummeled, causing people to then question the very viability of the companies involved.

First, obviously, are Fannie Mae (NYSE: FNM) (Cramer's Take) and Freddie Mac (NYSE: FRE) (Cramer's Take). We don't know what will happen, but we do know that their futures are much darker than their pasts. Their best hope: a Democrat becomes president and shows the usual love to both. But as investments, they are pretty much perma-losers going forward. The losses are that heavy. Yes, it is true that two years from now they will be better, but will the government let them limp through to that? View them as calls on a Democratic win.

We all know that Citigroup (NYSE: C) (Cramer's Take), Wachovia (NYSE: WB) (Cramer's Take), Washington Mutual (NYSE: WM) (Cramer's Take) and National City (NYSE: NCC) (Cramer's Take) are in trouble. Bank of America (NYSE: BAC) (Cramer's Take) says it isn't in trouble, but obviously the market doesn't believe management because the stock failed to rally when it said its dividend was safe. Any short-selling hedge fund could hire 30 actors and have them line up at a Washington Mutual or two and get a bank run going. Then we would have to hear about a "hasty" Treasury department plan to bail out WM. Hasty? How can these guys not see it coming?

No revelation that Lehman (NYSE: LEH) (Cramer's Take) or Merrill's (NYSE: MER) (Cramer's Take) in the soup, although I do marvel that at no price do they seem interesting to anyone -- value guys, takeover guys, or acquirers in general. But how about Comerica (NYSE: CMA) (Cramer's Take), Regions Financial (NYSE: RF) (Cramer's Take), Sovereign (NYSE: SOV) (Cramer's Take), Huntington Bancshares (NASDAQ: HBAN) (Cramer's Take), Suntrust (NYSE: STI) (Cramer's Take), Fifth Third (NASDAQ: FITB) (Cramer's Take), First Horizon (NYSE: FHN) (Cramer's Take), Marshall & Ilsley (NYSE: MI) (Cramer's Take), Zions (NASDAQ: ZION) (Cramer's Take), Key (NYSE: KEY) (Cramer's Take), Colonial (NYSE: CNB) (Cramer's Take) and BB&T (NYSE: BBT) (Cramer's Take)? Their charts are indicating there is much more devastation ahead. Every one of them is small enough to fail, and no one would give a darn. If the FDIC follows the trail blazed by IndyMac (NYSE: IMB) (Cramer's Take) it would be great because IndyMac Federal isn't foreclosing anymore. Get rid of the foreclosures, get rid of some of the overhang. But is that the plan, or do they have no place to put the foreclosed loans?

We know that the Gang of Four -- MBIA (NYSE: MBI) (Cramer's Take), MGIC (NYSE: MTG) (Cramer's Take), PMI (NYSE: PMI) (Cramer's Take) and Ambac (NYSE: ABK) (Cramer's Take) -- has been obliterated, a long-running saga of puffing by management and disastrous numbers. These companies are important, even if everyone seems to think that they have gone down without much repercussion other than the 40th story about how private mortgage insurers are now raising rates. Golly gee, who is paying them anything? They don't have enough money to pay the bank back for heaven's sake!

For example, they are very important to AIG (NYSE: AIG) (Cramer's Take), which seems to have found no bottom. None at all. Remember that funny dividend boost at AIG? What was that about?

There are tons of other financial insurers no one's paying attention to that seem to go down pretty constantly. An outfit like XL (NYSE: XL) (Cramer's Take) seems like it is a wasting asset. Or how about Genworth (NYSE: GNW) (Cramer's Take), which is selling well below book value?

Then there is everything auto, not just Ford (NYSE: F) (Cramer's Take) and GM (NYSE: GM) (Cramer's Take) (although do you really need anything else to go wrong there?) -- outfits like Visteon (NYSE: VC) (Cramer's Take) or Autonation (NYSE: AN) (Cramer's Take) or Carmax (NYSE: KMX) (Cramer's Take) aren't going to get through this one unscathed.

Or how about the homebuilders? Does anyone think that Hovnanian (NYSE: HOV) (Cramer's Take), Lennar (NYSE: LEN) (Cramer's Take), Pulte (NYSE: PHM) (Cramer's Take) and Horton (NYSE: DHI) (Cramer's Take) will all make it? I don't. How about that nifty Lennar upgrade by UBS? Sold to you, UBS (NYSE: UBS) (Cramer's Take), along with all of the toxic mortgages you STILL OWN!

I am not even going to include the airlines, they are all hopeless in my opinion, except for maybe Southwest (NYSE: LUV) (Cramer's Take). They are charities.

Other areas have problems -- retail has some busted stocks, and so do restaurants. Chico's (NYSE: CHS) (Cramer's Take)? Charming Shoppes (NASDAQ: CHRS) (Cramer's Take)? How about Macy's (NYSE: M) (Cramer's Take) -- where's that headed? Sears (NASDAQ: SHLD) (Cramer's Take)? OUCH!

You can see some techs folding, but only a handful. Maybe because only AMD (NYSE: AMD) (Cramer's Take) is on the fiscal ropes do people see "relative strength" in tech, whatever that means.

The problem is that the dire stocks, the ones I have listed, are so numerous and so concentrated with so little hope for rescue that it is hard to imagine anything but more downside for these stocks and therefore more downside for the rest of the market, simply because they are so glaring, are owned by so many mutual funds and have so many roles to play in the real economy.

We know that things have gotten out of control because the IndyMac collapse -- widely predicted -- used a huge amount of the surplus the FDIC has, suddenly making the safety net seem like a flimsy piece of Brawny.

The bottom line here -- there is too much going wrong right now, too much to put us anywhere near sound footing. I suspect that every rally will be met with selling until we see a multitude of collapses like IndyMac.

I am not going to search for positives in any of these groups yet, and if they rally off the decision by the Treasury to make more explicit the Fannie and Freddie guarantees, I would scale out of them once again on any short squeeze like the one we had at yesterday's opening.

Someone asked me yesterday, "When do we bottom?" I said it wouldn't be until all the banks that have to fail do so and GM files bankruptcy along with Ford. I said it matter-of-factly, because I meant it and because it is obvious.

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RELATED LINKS:
IndyMac Insurance Tab Could Hit $8B
Fannie, Freddie Plan Staves Off Housing Disaster
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Jim Cramer is a director and co-founder of TheStreet.com. He contributes daily market commentary for TheStreet.com's sites and serves as an adviser to the company's CEO. At the time of publication, Cramer had no positions in the stocks mentioned.

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Profit from fantastic four, southwest secrets to success & behind the booze brands - Today in Money 7/8

Allan Halprin — 2008-07-08T08:40:00+00:00

Filed under: Home Depot (HD), Berkshire Hathaway (BRK.A), India, China, Brazil, Russia, Penney (J.C.) (JCP), Money and Finance Today, Sears Holdings (SHLD), Federal Natl Mtge (FNM), Lowe's Cos (LOW), Office Depot (ODP), Southwest Airlines (LUV), IndyMac Bancorp (IMB)

In the News:

· Fed Eyes Extending Emergency Loans for Wall Street

· Siemens Cutting 16,750 Jobs Worldwide

· Microsoft Is Icahn's Ally in Pursuit of Yahoo

· Fannie & Freddie Plunge on Capital Concerns

· IndyMac Halts New Loans, to Cut 3,800 Jobs

· Office Depot Sees 10% Drop in Sales

· Texas Oilman T. Boone Pickens Wants to Replace Oil With Wind

· AirTran Cutting 480 Pilot & Flight Attendant Jobs

· J.C. Penney Launches Brand for Young Adults

· Warren Buffett Gives Away $2 Billion in Stock to 3 Charities

Profit From the Fantastic Four
Take a look at these 26 stocks, funds and exchange-traded funds that key in on the fast-growing BRIC nations -- Brazil, Russia, India and China.
Profit From the Fantastic Four - Kiplinger.com

Southwest's Seven Secrets for Success
By some estimates, the country's major carriers have consumed perhaps $100 billion in capital during the past decade, but Southwest Airlines continues to be profitable. It's been in the black for 33 consecutive years and, last week, for the 127th consecutive quarter. While its competitors are shrinking, Southwest will add a handful of flights this fall. What does Southwest know that no one else in airlines does? It keeps things simple and consistent, which drives costs down, maximizes productive assets, and helps manage customer expectations.
Why Southwest Succeeds - Portfolio.com

Cut Your Spending By $500 a Month
The Consumer Reports Money Lab shakes loose a bushel of savings hiding in everyday spending. See how to save $200 a month on food, $25 on bank fees, $35 on phone savings, $65 on credit cards, $110 on insurance, $125 on retirement tax savings.
ConsumerReports.org - Saving money, increase your 401(k) contribution

Beat the College Loan Crunch
Lenders are leaving in droves, which could cut off funds for the coming academic year. Here's how to get the money your child needs.
Your family's money - Beat the college loan crunch - CNNmoney

Best Appliance Stores
Lowe's edges out Home Depot, Sears gets mixed results and low marks for Maytag. Take a look at how Consumer Reports rates the best for price and service from the most recognizable names in appliances.
ConsumerReports.org - Appliance stores: Ratings, How to choose

As Food Costs Soar, It's Back to Basic for Meal Planners
Rebecca Woods and her family in Lathrop, Mo., have turned to the land, planting hundreds of vegetables and relying on their own chickens for eggs. Retirees Sally and Robert Jones of Alpine, Texas, have reverted back to some of the menus that got them through graduate school many years ago, living on beans, stews and soups. They are just a couple of examples of how Americans are changing their meal planning as food prices continue to climb.
As food costs soar, it's back to basics for meal planners - USATODAY.com

Behind the Booze Brands
Who were Captain Morgan and Johnnie Walker? Believe it or not, both men really existed--the former a vicious pirate, the latter a Scottish grocer. Products such as Jack Daniel's leverage their histories to sell a drinking experience based on historical reverence--unchanged by time. See who is really behind the brand names for Captain Morgan, Grey Goose, Hennessy, J&B, Jack Daniels, Jagermeister, Jose Cuervo and more.
Behind The Labels - Forbes.com

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For airlines, every pound saved is a dollar earned

Joseph Lazzaro — 2008-06-11T16:56:00+00:00

Filed under: Consumer experience, Southwest Airlines (LUV), AMR Corp (AMR), Contl Airlines'B' (CAL), UAL Corp (UAUA), Delta Air Lines (DAL)

No, the airlines haven't started charging by the pound. At least not yet...

Jokes aside, nobody told the airlines there'd be days like these, to paraphrase John Lennon.

Jet fuel costs -- up 84% in the past year alone -- have skyrocketed, along with the cost of just about every other product derived from the world's most vital commodity, and the airlines are looking for every conceivable way to reduce weight, reduce wind/resistance drag, and increase operational efficiency, The New York Times reported Wednesday.

The major carriers are replacing heavier seats with lighter ones, cleaning engines and planes more often, reducing the fresh water available on flights, and plugging into electric outlets instead of idling engines at the gate, among other changes, in order to cut fuel consumption.

More air travel changes ahead

Moreover, the changes -- and charges -- have only just begun, so says stock analyst C. Leonard Bauer. "Everyone knows about the added bag charges, a pain in the neck, for sure. But it could get worse," says Bauer, who also flies on a major carrier about 5-7 times per year. "In the winter you could see a per pound baggage charge, or something along those lines. So don't pack that extra winter coat when you fly this December."

To be sure, weight is no laughing matter, for the airlines, Bauer said. Weight may very well determine which carriers survive the current oil shock. "Reduction in weight can mean the difference between a flight that turns a $20,000 profit or loses $30,000," Bauer said. "Add that up over thousands of flights and you begin to grasp the airline's perspective." Bauer added that he does not have a rating on nor own shares in any airline.

Another likely sector-wide change, according to Bauer, could be slower flying speeds, which means longer travel times between points. "The practice has already started, and it has to occur, at least until airlines can phase-in new planes, which are more fuel efficient," Bauer said. "The airlines will determine the optimum speed per plane and flight, then see how close they can come to it, and still comply with safety and schedule requirements."

Of course, none of the above applies, Bauer said, if oil drifts back towards saner price levels.

"Oil and sane price levels?" Bauer added. "That's an oxymoron."

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Southwest's profit secrets

Peter Cohan — 2008-05-24T07:00:00+00:00

Filed under: Boeing Co (BA), Southwest Airlines (LUV)

Although its stock is down 45% since the beginning of 2001, Southwest Airlines (NYSE: LUV) is the only airline to make a profit every year since it was founded. As The New York Times reports, Southwest's founder Herb Kelleher retired as chairman after 37 years this week. And he got a very warm send off from employees.

This is really one of the keys to Southwest's success. As I wrote in Value Leadership, here are some big reasons that it's been able to profit over the years:

Treats employees well. Southwest genuinely cares about its employees. It spends a significant amount of time selecting them and it pays them well -- including giving them stock options and profit sharing -- and treats them with respect. The happy employees treat customers well and the happy customers keep coming back.
More productive. Southwest turns planes around at the gate in 20 minutes. It doesn't serve meals -- just snacks. This cuts time that might be spent waiting for food to arrive at the plane and cleaning up after. And since employees care about the company and are rewarded for Southwest's profitability, they look for ways to keep it profitable.
Hedging on fuel costs. Southwest hedges jet fuel -- which is the second biggest airline cost. 70% of its fuel is hedged at $51 a barrel which compares favorably to the current $135.

Low fares, out-of-the-way airports. Southwest flies point-to-point routes so people get to their destinations faster. It charges low fares and it makes money thanks to its lower costs. Part of the lower costs come from operating out of airports that charge lower landing and other fees to the airlines.
Use of one kind of aircraft: the Boeing Co. (NYSE: BA) 737. Since it doesn't own many different kinds of aircraft, Southwest spends less time training people and its maintenance costs are lower than they would be if they needed to train pilots and mechanics to maintain a more diverse fleet.

In short, Southwest is profitable because it does many things right. But the thing tying it all together is the idea that happy employees act to keep customers happy and to reward shareholders by doing things that keep the company profitable.

Peter Cohan is President of Peter S. Cohan & Associates. He also teaches management at Babson College and edits The Cohan Letter. He has no financial interest in the securities mentioned.

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Military couple are millioniares in making, more trouble ahead for fliers & incredible parking garages - Today in Money 5/23

Allan Halprin — 2008-05-23T08:45:00+00:00

Filed under: Yahoo! (YHOO), Walt Disney (DIS), Money and Finance Today, Gap Inc (GPS), Southwest Airlines (LUV), US Airways Group (LCC), AMR Corp (AMR), Contl Airlines'B' (CAL), UAL Corp (UAUA), JetBlue Airways (JBLU), Delta Air Lines (DAL)

In the News:

· $4 Gas Forecast for Coming Week

· The Gap Weathers Sales Slump as 1Q Profit Surges 40% Thanks to Cost Management

· Airlines Running Short on Options

· Deal Reached in Tainted Pet Food Case

· Mesa Air's Future in Doubt

· Home Prices Post Record Decline

· Yahoo Nominates Existing Board for Re-Election

· High Gas Prices Force Cops to Walk the Beat More

· Disney Recalls Sleeping Bags, Toy Wands

Military Couple are Millionaires in the Making
If you're brave enough and willing, the Army can be a lucrative career. Just ask U.S. Army Captains Matthew and Kristen Shifrin. This military couple's plan is to save one paycheck and live off the other. That has them well on their way to meeting their financial goals.
Millionaires in the Making Millionaires in the Making: The Shifrins «

Safeguard Your Home Before a Storm Strikes
Disaster has stormed through homes from the Gulf of Mexico to the Atlantic Ocean, with 1,005 tornadoes reported so far this year and AccuWeather.com forecasts 12 named hurricanes this year. Take these steps now to protect your house and valuables -- plus, what to do after disaster hits.
Safeguard Your Home Before a Storm Strikes - Kiplinger.com

More Trouble Ahead for Fliers
Other carriers are likely to mirror American's plans to add checked-bag fee and cut seats.
Other Airlines Likely to Follow American's Lead -SmartMoney

Steps to Take to Avoid Having Your Car Stolen
Every 26.4 seconds, another car is stolen in the United States. Don't be part of this statistic. You can avoid starring as a car-heist victim in a real life "Gone in 60 Seconds" scenario by following these steps.
Putting the brakes on auto theft - Bankrate.com

Most Incredible Parking Garages
Parking structures are rarely sexy. But these nine buildings were built to accommodate automobiles in an architecturally sophisticated manner.
http://images.businessweek.com/ss/08/05/0521_beautiful_parking/index_01.htm?technology+slideshows

World's Best Vodka
Some drinkers say vodka has no taste. Discerning martini drinkers disagree. BusinessWeek's in-house bon vivant David Kiley thought it a good time to evaluate some of the top brands on the bar shelf. Ketel One and Ciroc tied for the top.
In Pictures: Best Vodkas World's Best Vodka? It's Anybody's Guess

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Survey shows airline passengers not happy with service

Michael Fowlkes — 2008-05-20T12:38:00+00:00

Filed under: Bad news, Products and services, Consumer experience, Competitive strategy, Employees, Southwest Airlines (LUV), AMR Corp (AMR)

We have all been there before, standing beside the luggage conveyor belt after a long flight, quietly praying for our luggage to magically pop out of that little window and slide our way. When our luggage finally shows up, it typically means the end of a long day that generally has the potential to stress out most travelers.

For me at least, as long as I get my luggage I am satisfied with my trip. But for a lot of us, there are several factors we use to grade the airlines, and a recent survey shows that customer dissatisfaction is running at near record level lows. These factors include anything from planes leaving and arriving on time, to the service inside the plane from fight attendants, to just how easily mishaps get handled by the agents at the ticketing desks.

Having lived in Europe the past few years, I have been no stranger to the long distance flight back and forth to the States. I suppose I have traveled roughly 100,000 miles on airlines over the past couple of years, and I have to say that for the most part I have had very pleasant experiences. My girlfriend was unfortunate enough to have lost some luggage for a week over this past Christmas, but other than that, I have been pretty lucky.

Seems I'm in the minority. A recent survey taken by the University of Michigan showed that, on a 100 point scale, passengers gave the airline industry a score of 62. This is only 1 point higher than the all time low score of 61 that was recorded during 2001.

There are several excuses that can be given by the airlines in reaction to the low scores. The first, is of course the usual excuse these days, high fuel costs. As airlines struggle to battle the rapidly increasing cost of keeping their planes in the air, of course they are going to have to look at ways to cut back on expenses. These could be reduction in the number of bags for check-in, the cutting back of certain in-flight luxuries passengers are used to having, fewer flights, etc. All of which could be viewed as a reason to be unhappy with the flight.

I don't know about you, but I often wonder why they even bother to give me a bag of pretzels if there is only going to be five pretzels in the bag -- and yes, I actually did count one time to find just five pretzels. But at least it was handed to me with a nice smile, which goes a long way, you have to agree!

Another reason why the average scores are so low could be the trend toward low-cost airlines. Remember, people, if you buy the cheapest ticket you can find, on the cheapest airline you can locate, don't expect the Cadillac of the skies to show up. If you are looking for the lowest prices, expect to get what you are paying for. This is, of course, a bad generalization on my part, I do realize that, but something to keep in mind when judging your recent flight experiences.

As for me, I am pretty loyal to American Airlines (NYSE: AMR). Their flights are usually on time, and I have rarely had any problems at all with any sort of missed flights, lost luggage, etc. OK, so they lost my girlfriend's luggage for a week during Christmas, but at least they did eventually find it, drove it to our house, and gave us $120 to go shopping in the meantime. So in the end, they made up for the experience.

In the current survey, American scored 62, which was the second highest ranking under Southwest Airlines (NYSE: LUV), which had high marks with a score of 79. I have not flown on Southwest in several years, but they must be doing something right to be so far ahead of the rest of the pack.

What are your thoughts on this survey? Have your flown recently, and if so what was your overall impression with your trip? Let us hear which airlines you use, and how you rank them.

Michael Fowlkes has worked as a stock trader for seven years and spent the last four years working as an analyst for the online investment advisory service Investor's Observer.

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Most innovative companies, airline secrets & billion dollar sport of ultimate fighting - Today in Money 4/18

Allan Halprin — 2008-04-18T09:44:00+00:00

Filed under: Google (GOOG), Apple Inc (AAPL), eBay (EBAY), General Electric (GE), Pfizer (PFE), Wal-Mart (WMT), Toyota Motor Corp. (TM), Walt Disney (DIS), Caterpillar (CAT), Netflix, Inc. (NFLX), Citigroup Inc. (C), Goldman Sachs Group (GS), Xerox Corp (XRX), Southwest Airlines (LUV), BP p.l.c. ADS (BP), Marriott Intl'A' (MAR), Contl Airlines'B' (CAL), Honeywell Intl (HON)

In the News:

· Citigroup Posts Worst-Than-Expected $5.1 Billion Loss; 9000 Job Cuts Coming

· Google Beats Q1 Estimates; Stock Soars

· Xerox Swings to Loss

· Caterpillar Earnings Rise 14%; Top Estimates

· Honeywell Earnings Impress Wall Street; Raises Guidance

· Sallie Mae Unsure About Future Loans

· Continental & Southwest Airlines to Raise Fares

· E*Trade Swings to Loss; Cutting Back as Recession Looms

· eBay Struggles to Rebuild Traffic

· Linen's 'N Things Shopping for a Buyer

· Thomson Reuters Takes on Uncertain World

· Netflix Lives!

50 Most Innovative Companies
The companies that make up BusinessWeek's annual ranking nurture cultures that value creative people in good times and bad. The top company by industry include Apple, Pfizer, Goldman Sachs, Disney, Toyota, GE, Marriott, Wal-Mart and BP.
The World's Most Innovative Companies

Airline Gate-to-Gate Times Slowest in 20 Years
Air travel is slower than at any time in the past two decades, a USA TODAY analysis shows. Here are the top 10 major routes where flight times have increased, gate to gate.
http://money.aol.com/news/articles/_a/air-trips-slowest-in-past-20-years/20080418074309990001 Air trips slowest in past 20 years - USATODAY.com

10 Things Your Airline Won't Tell You
Your hard-earned air miles are worth less all the time. We love to sock you with hidden fees. Customer service isn't always our top priority. Go inside the airline industry and see their secrets.
10 Things Your Airline Won't Tell You (10 Things: Personal Finance) at SmartMoney.com

Are There Too Many Women Doctors?
As an MD shortage looms, female physicians and their flexible hours are taking some of the blame.
Are There Too Many Women Doctors?

Squeezed Lenders Abandon Students
The exodus of lenders means students must be vigilant about securing loans. Here's how.
Squeezed Lenders Abandon Students (Consumer Action: Personal Finance) at SmartMoney.com

The Brothers Behind Ultimate Fighting
Two casino tycoons turned a violent fight club into a billion-dollar sports empire.
The Brothers Behind Ultimate Fighting - Forbes.com
Also: Ultimate Fighting Superstars

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Before the bell: Futures down after surge yesterday

Sarah Burns — 2008-04-17T07:55:00+00:00

Filed under: Before the bell, Earnings reports, Deals, Google (GOOG), eBay (EBAY), Pfizer (PFE), International Business Machines (IBM), JPMorgan Chase (JPM), Merrill Lynch (MER), Southwest Airlines (LUV), Contl Airlines'B' (CAL), Economic data

Futures eased slightly this morning as the market sought to catch its breath after sprinting higher Wednesday. All indices had strong gains after better-than-expected first-quarter earnings reports from JPMorgan Chase, Coca-Cola Co., and Intel Corp. The Dow industrials finished up 257 points, or 2.08%, the S&P 500 rose 30 points or 2.27% and the Nasdaq Composite closed up 64 points or 2.8%.

IBM (NYSE: IBM) reported very strong Q1 figures after the close Wednesday. The company had income from continuing operations of $2.3 billion, or $1.65 a share, up from $1.8 billion, or $1.21 a share, a year ago. IBM was aided by the weakness of the U.S. dollar, with some 65% of revenue coming from overseas. eBay also had a good quarter, with profit climbing 22%.

However, there was a disappointing earnings report from Merrill Lynch (NYSE: MER) this morning. The company lost $1.96 billion, or $2.19 a share, compared with net income of $2.16 billion, or $2.26 a share, a year ago, after billions of dollars of writedowns related to the subprime crisis. Merrill plans to cut about 4,000 jobs, or 10% of its workforce. Nokia (NYSE: NOK)'s quarterly income rose 25% to 1.22 billion euros, up from 979 million euros a year earlier, but missing analysts expectations of 1.38 billion euros, according to Bloomberg News. Pfizer (NYSE: PFE) also missed analysts' estimates for the quarter, with profit falling 18%.

The U.S. dollar hit another all-time low against the euro, while oil prices hit an all-time high of more than $115 a barrel. According to the U.S. Energy Department, inventories of gasoline fell 5.5 million barrels last week. Related to the ongoing increase in oil prices, Continental Airlines reported a loss for the first quarter, while Southwest Airlines earnings declined. However, American Airlines yesterday posted a smaller-than-expected loss.

In the news today, Yahoo! moves closer to deal with Google on outsourcing search advertising, according to the Wall Street Journal. Google (NASDAQ: GOOG) is expected to release earnings this afternoon.

In economic data, unemployment claims for the week ending April 5 will be released at 8:30 a.m. EST; the Philadelphia Fed report will be out at 10:00 a.m.

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Southwest Airlines and Pfizer Q1 profits expected to fall

Trey Thoelcke — 2008-04-16T10:37:00+00:00

Filed under: Earnings reports, Forecasts, Pfizer (PFE), Southwest Airlines (LUV)

Analysts surveyed by Thomson Financial expect Southwest Airlines Co. (NYSE: LUV) and Pfizer Inc. (NYSE: PFE) to post smaller profits in the first quarter. Both companies are scheduled to report results on Wednesday.

Southwest is expected to essentially break even as far as earnings are concerned, which is down from the same period in 2007 when it earned four cents per share. The company has beat quarterly estimates recently. It only just beat the consensus third-quarter 2007 estimate, but beat the fourth-quarter estimate by 21.2%.

Dallas-based Southwest's low-cost, no-frills approach has made it one of the leading U.S. airlines. In the past year, the company's revenues were $9.8 billion and its net income totaled $645 million. Its EPS growth forecast for the year is -28.7%, worse than the industry average but better than that of rival JetBlue Airways (NASDAQ: JBLU). The consensus recommendation of analysts remains to buy Southwest.

The stock has fallen 18.5% in the past year and trades at a P/E of 14.7. Shares closed Tuesday at $12.35.

Pfizer is expected to earn 66 cents per share, 3% less than in the same period in 2007 when it earned 68 cents. While the company has tended to beat quarterly estimates recently, it did miss the second-quarter 2007 estimate by 15.6%. It beat the fourth quarter estimate by 11.3%, though.

The New York-based maker of Viagra, Celebrex, and Zoloft is the world's largest research-based pharmaceuticals firm. In the past year, its revenues were $48.4 billion and its net income totaled $8.1 billion. Its EPS growth forecast for the year is 8.64%, which is better than both the industry average and that of rival Merck & Co. (NYSE: MRK). But for the past 90 days, the consensus recommendation of analysts has been to hold Pfizer.

The stock has fallen 22.3% in the past year and trades at a P/E of 17.55. Shares closed Tuesday at $20.71.

For other news that could influence these results, see BloggingStocks' Southwest coverage and Pfizer coverage.

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Flying the unfriendly skies

Jonathan Berr — 2008-04-07T15:43:00+00:00

Filed under: Consumer experience, Competitive strategy, Southwest Airlines (LUV), US Airways Group (LCC), JetBlue Airways (JBLU)

Anyone planning a vacation this summer should remember two words: AirTran and Jet Blue Airways Corp. (NASDAQ: JBLU).

Those were the two airlines that came out on top of a national survey of airline quality released today that underscored the sorry state of the industry. Anyone who has flown since 9-11 knows that getting your teeth pulled is more fun. Planes are filled to the brim and are often late. Luggage often goes on magical mystery tours that bypass your destination.

Last year was more of the same, according the Associated Press

"There were more lost bags, more bumped passengers, more consumer complaints and fewer on-time flights than in the previous year," the story says. "The rate of consumer complaints was up 60 percent. US Airways (NYSE: LCC) had the most complaints last year. Southwest (NYSE: LUV) had the fewest."

Bad airlines are bad for the environment because it encourages more casual fliers to drive to their destinations. Even with soaring gas prices, flying isn't worth the trouble. I may have to fly this summer and I'm already dreading it.

--Freelance writer Jonathan Berr edits the blog Ketchup and Eggs.

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ATA Airlines files for bankruptcy; cancels all flights

Michael Fowlkes — 2008-04-03T10:00:00+00:00

Filed under: Other issues, Bad news, Press releases, Products and services, Management, Industry, Consumer experience, Competitive strategy, Employees, Southwest Airlines (LUV)

Two years after coming out of bankruptcy, ATA airlines has once again been forced to file for chapter 11. The airline canceled all flights, and has advised travelers to start to look for alternative travel arrangements.

The airline operated roughly 50 flights a day, and had more than 2,200 employees working. On its website, ATA has issued a formal statement and blamed the final straw for its collapse on the loss of a key military contract. In 2006, the company had won a $335 million dollar contract from the U.S. Air Force for international airlift services.

In its statement, ATA has advised passengers to contact their credit card company, or travel agent to discuss the options to get refunded for their unused tickets.

When looking to rebook your travel plans, you can use this website that lists alternative airlines that fly to the destinations that ATA had been servicing. On the site you can find airline information, website addresses as well as phone numbers for reservation desks.

If you have ATA tickets that you purchased through Southwest Airlines (NYSE: LUV), then you need to contact Southwest directly at the following number: (800) 308-5037.

For the 2,200 employees of the company -- they will be receiving official notices today that their jobs have been eliminated. While it is never a good feeling, hopefully it will not be too much of a shock for the company's workers. The writing has definitely been on the wall.

Last month the company announced that it would no longer be using Chicago's Midway Airport (where it has had a hub since 1992), and then just two weeks ago the chief executive of ATA's parent company resigned under pressure regarding ATA's profitability.

I am sorry to see the company shut down, and only hope that the challenging environment that airliners are currently facing will not lead to more repeat stories like this one.

Michael Fowlkes has worked as a stock trader for seven years and spent the last four years working as an analyst for the online investment advisory service Investor's Observer.

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Before the bell: NCC, AAPL, GM, LUV, SGP, GOOG ...

Melly Alazraki — 2008-04-03T08:26:00+00:00

Filed under: Before the bell, Google (GOOG), Apple Inc (AAPL), General Motors (GM), AT and T (T), Research in Motion (RIMM), Southwest Airlines (LUV), Merck and Co (MRK)

Before the bell: Slow start on Wall Street as Bernanke heads back to Capitol Hill: RIMM, CSCO

National City (NYSE: NCC) was upgraded to Equal Weight from Underweight at Morgan Stanley due to valuation and the possibility the bank could be bought. The broker reiterated its $10 price target.

After Research in Motion (NASDAQ: RIMM) reported such strong earnings and sales Wednesday, many believe it was Apple Inc. (NASDAQ: AAPL)'s iPhone that was partly responsible for that. Some say that the introduction of the iPhone in June brought attention to smartphones. Meanwhile, there are reports that there is a shortage of iPhones in Apple's stores in the U.S. Many speculate Apple may be phasing out the existing models in preparation for new ones to work on 3G netwroks.

General Motors (NYSE: GM) - According to The Wall Street Journal, GM may take on more of parts maker Delphi's pension liabilities as it tries to help it emerge from Chapter 11 bankruptcy protection. It's interesting to hear this especially two days after GM posted 19% decline in sales in March compared to a year ago period. How can the already struggling automaker, seeing its sales drop that much, take on such a liability?

Fed chairman Bernanke won't be alone Capitol Hill Thursday as top executives from Southwest Airlines (NYSE: LUV) are also due to testify before the House Transportation and Infrastructure Committee on problems with safety inspections of its aircraft. The FAA will try to find if the airline tried to keep serious problems with its maintenance program hidden and pressured the FAA to keep out an inspector who noticed the problems.

Schering-Plough Corp. (NYSE: SGP) - only a few days after a study found the cholesterol drugs it markets with Merck & Co. (NYSE: MRK) are no better than cheaper alternatives, causing shares to tank, SGP is announcing a plan to cut costs by $1.5 billion by 2012. While cutting costs is always a positive, the company still needs to find to new source of revenue to replace the ones from its blockbuster cholesterol drugs it relies on so heavily. Whether it could do so and save itself, is another matter. For now, SGP shares are up 1.9% in premarket trading.

Finally, without confirmation from the company, The New York Times reported Google Inc. (NASDAQ: GOOG) "is cutting about 300 jobs from the American operations of DoubleClick, the advertising technology company that it acquired recently."
Meanwhile, AT&T Inc. (NYSE: T) said it prefers offering handsets that use Google's Android operating system.

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Newspaper wrap-up: FAA alleges Southwest Airlines tried to choose inspectors

Laurie Pasternack — 2008-04-03T08:00:00+00:00

Filed under: Newspapers, Magazines, General Motors (GM), Motorola (MOT), Citigroup Inc. (C), Southwest Airlines (LUV)

MAJOR PAPERS:

General Motors Corporation (NYSE: GM) part supplier Delphi Corporation (OTC: DPHIQ), under bankruptcy court protection and having difficulty raising the $6.1B it needs to leave Chapter 11, may get more help from GM, which is reviewing taking more of Delphi's pension liabilities, the Wall Street Journal reported.
The Wall Street Journal also reported that the FAA recently found that 46 Southwest Airlines Co (NYSE: LUV) jets failed to complete mandatory inspections and that six planes needed repairs. The FAA also found, and alleged, that the airline attempted to pick and choose the agency's inspectors to review their fleet of planes.
The Financial Times reported that a planned merger between Brasil Telecom SA (NYSE: BTM) and Oi, two of Brazil's largest telecom companies, may be threatened by a battle between Citigroup Incorporated (NYSE: C) and Brasil Telecom's controlling shareholders.

OTHER PAPERS:

Motorola Inc (NYSE: MOT) will stop making mobile phones in Singapore by the end of this year, according to the Straits Times, which is expected to result in the loss of at least 700 jobs.

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Airlines stand to profit from your $600 rebate check

Aaron Katsman — 2008-04-02T16:23:00+00:00

Filed under: Products and services, Industry, Southwest Airlines (LUV), Personal finance, JetBlue Airways (JBLU)

I have had some clients ask me, what industry I think will benefit from the $600 rebate checks that are due to be sent out as part of the U.S. economic stimulus package. I think airlines will benefit, especially lower cost carriers like Southwest (NYSE: LUV) and Jet Blue (NASDAQ: JBLU).

The USA Today has an article about the kind of vacation you can have for $600. The article says: "With most Americans expecting to receive a tax rebate of up to $600 ($1,200 for married couples), there are plenty of ways to get the most vacation for your buck, say travel experts. Whether it's a cruise, a tropical paradise, or family travel, these trips can all be done for under $600 a person."

Because we aren't talking about flying around the world or across the Atlantic for that measure, trips to Las Vegas or Orlando, for example, will fit the family, and of course people need a way to get to these destinations, so that's how the airlines become interesting. Throw into the mix potentially stable or even lower fuel costs, and for investors looking for a way to play the "Rebate check" game, you may want to take a look at the airlines.

Aaron Katsman is the lead Portfolio Manager and Managing Director of America Israel Investment Associates, LLC. and Senior Editor of IsraelNewsletter.com. DISCLOSURE: Writer's fund has no position in any stock mentioned, as of 4/2/08

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Before the bell: UAUA, AMZN, S, GOOG, INTC, WMT ...

Melly Alazraki — 2008-04-02T08:22:00+00:00

Filed under: Before the bell, Google (GOOG), Apple Inc (AAPL), Wal-Mart (WMT), Amazon.com (AMZN), Intel (INTC), Sprint Nextel Corp (S), Boeing Co (BA), Southwest Airlines (LUV), AMR Corp (AMR), UAL Corp (UAUA), Delta Air Lines (DAL)

Before the bell: Street awaits Bernanke testimony; BBY, PFE, RIMM

United Airlines of UAL Corp. (NASDAQ: UAUA) also announced Wednesday it was grounding planes, saying it won't fly 52 Boeing 777s until safety tests are completed, after discovering that a routine pre-flight safety check was not performed. United joins Southwest Airlines (NYSE: LUV), American Airlines (NYSE: AMR) and Delta Air Lines (NYSE: DAL) in having to ground aircraft to perform safety tests.

Amazon.com, Inc. (NASDAQ: AMZN) launched a new service, Amazon TextBuyIt, that lets shoppers compare prices and buy things by texting on their cell phones. Meaning, that while we now shop at a brick-and-mortar store but want to compare prices at Amazon, all that is needed is texting the ISBN or UPC of the product to a preset number. If we then want to buy it from Amazon, we can immediately do so by texting the appropriate numbers/letters. Amazing!

Could it be that Sprint Nextel (NYSE: S) is gearing up to take on Apple Inc. (NASDAQ: AAPL)'s iPhone? Apparently, Sprint is counting on the new Samsung Instinct handset to do just that as it hopes the device will help it gain back market share and stop customer attrition. The Instinct, exclusive to Sprint, will offer full touch-screen functionality in addition to a virtual QWERTY keypad as well as a multitude of other features. Well, we'll have to wait and see ... who knows?

Google Inc. (NASDAQ: GOOG) Chief Information Officer Douglas Merrill is leaving the search giant to become president of EMI's digital unit, according to sources. EMI is a unit of private-equity firm Terra Firma. The move has many in the industry scratching their heads as Google is considered a innovative company while EMI is struggling.

Intel Corporation (NASDAQ: INTC) will be using a conference today to push its new Atom processors for Mobile Internet Devices (MIDs) and embedded computing solutions. With Intel missing out on the chips for cellphones market, it hopes this would be the next consumer gadget.

You'd think Wal-Mart (NYSE: WMT) would learn at some point how to avoid PR messes, but no. Well, the retailer giant finally decided to drop its suit against a former Wal-Mart employee who suffered severe brain damage in a traffic accident and won't have to pay back the company for the cost of her medical care.

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