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When the Boston Bruins had Gerry Cheevers, he was always known for making the great SAVE. Then against the Canadians, when they had the best team, they put in Eddie J and he couldn’t make a SAVE.
Today however, $$$MR. MARKET$$$ made a great SAVE! I sold SAVE today at 47.97. That’s a 15.5% gain over my purchase price of 41.55. That’s a 15.5% gain in only 2 months. That’s a 93% annualized gain. Over the same period, the S&P 500 was up 3.8%...nice try, but not nearly as good as $$$MR. MARKET$$$. How come index fund managers get paid 7 figure salaries to make the same as the S&P 500, when $$$MR. MARKET$$$ outperforms the S&P 500 by a landslide.
I mean are you serious? Those guys are lamo losers. They have skinny arms and fall down when someone bumps into them at a sports bar. $$$MR. MARKET$$$, on the other hand has HUGE arms and when someone bumps into him at a sports bar they are all black and blue because they think they ran into a brick wall.
I just can’t help it. I know the whole world wants to be like me, so all I can do to make them feel better is to share my stock picks with the whole world.
By the way, that makes 30 consecutive profitable trades of 15% or better. THIRTY! Can you do that? You? YOU?? YOU??? What do your friends tell you when you tell them you know a guy who has 30 consecutive profitable trades of 15% or better. Come on…tell me. I gots to know.
If you don’t tell me how much you like my picks, there may not be another one. So be nice. Are you all happy?
I am HUGE!!!
$$$MR. MARKET$$$
================================================== =============================
11-08-2013, 06:13 PM #1 mrmarket's Avatar mrmarket mrmarket is online now
Administrator
Join Date
Sep 2003
Posts
4,552
Default SAVE ==> The Middlebury Winner
Everyone on the planet knows that if you want to go on a trip, you can use any one of the travel sites to find out which flight is the cheapest. Inevitably, if Spirit Airlines flies the route you are looking for, it’s air fares will be the cheapest. People, who think they are so smart using their computer, click on the cheapest fare and buy a roundtrip ticket on Spirit Airlines. Excited about all of the money they are saving, they prepare for their trip. Let’s read some reviews:
“If you die and go to hell, Satan will bring you there on a Spirit Airlines flight.
I had two flight delays and then a cancelation of said flight. Called company to pay for the taxi that I needed to get me to a hotel for next-day flight. Guess what? They wouldn't reimburse.
They lost our bags...on a flight that NEVER TOOK OFF. How does that happen? No one knew where they disappeared to. I imagine that the bags were scared to get packed into a Spirit airplane and ran away.
Worst airline in America. The employees have to attend rude school before being hired. Don't let low price fool u. First flight from Myrtle Beach to Buffalo, direct flight and they lost my luggage. Did not see my bags for one week until we checked in for our return trip. Very little compensation for my inconvenience. Swore I would never fly again.
Flight #2 Ft Lauderdale to Atlanta checked and paid for three bags. Check in attendant dropped my golf bag on my leg which sliced a 3" gash in my leg. Nobody gave a shit. Promised to report same to HQ. Gave them my number and as usual no response. Shipped my golf bag home via FedEx (half price of Spirit) and they refused to credit the 3 rd bag on my return. Never, Never again. $9 club is bullshit as is their credit card. SPIRIT AIRLINES MEANS MEAN SPIRIT.”
…..and..
“If I can avoid ever flying Spirit again, I will.
The initial low prices that you see are just a ruse, because as you continue along the process of booking your flight, you'll find that there an additional cost for EVERYTHING. There's your price for the privilege of booking a ticket. There's a price for fuel. There's the price for taxes. There's the price for bringing on a carry-on bag. There's a price for selecting a seat--even if you select a middle seat in the last row right by the bathroom that doesn't recline. And then, when you're on board, hope you don't get thirsty, because there's even a charge for WATER.
In addition to draining your bank account, it seems that Spirit's second mission is to hobble you. I've never had so little leg room ever. After about an hour, my legs were insanely cramped. There was barely enough room to cross them. By the time my 4 hour flight ended, I worried gangrene might be setting in...”
Hmmmmm…..so the customers hate this airline, right? Why would you buy a stock in a company that EVERYONE hates? Simple….
Earnings earnings earnings
Today I bought Spirit Airlines (SAVE) at 41.55. I will sell it in 4 to 6 weeks at 47.97. Here’s why I like SAVE:
Yessir….this stock is taking off! It’s up 148% in the last 52 weeks. That’s about 12% per month. I like that momentum! The trailing PE is less than 20, that means the earnings are keeping up with the rising stock price. I like that too.
Spirit Airlines, Inc. provides low-fare airline services. It operates approximately 200 daily flights to 50 destinations in the United States, Latin America, and the Caribbean. They now have 51 Airbus single-aisle aircraft, consisting of A319s, A320s, and A321s.
So if this airline is so bad, how come it makes so much money? Spirit makes so much money because it takes so much of your money:
You pay for carry on bags. Your seat doesn’t recline so they can fit more passengers on their planes. They cancel your reservations before the plane takes off so they can squeeze more people on before they close the door.
Spirit doesn’t like to cancel flights because they can’t put their passengers on other planes which are already full. Instead they make them wait in the airport…suckers they already paid! Actually, more than 99% of their flights are completed even though they are late quite a bit.
But Spirit isn’t so bad. Spirit Airlines targets leisure travelers who might not even fly but for the bargain prices it offers on base fares. Over the last 5 years, despite rising fuel and wage costs, they still reduced their average ticket prices by 20 percent. The average ticket price is $75 bucks. But that is ticket price before fees. The extra fees add up to a LOT! The fees usually add up to more than 40% of the ticket cost. The good news is that the other airlines are also adding these extra fees, which allows Spirit to sustain them. Baggage and cancellation fees have increased by 650 percent overall since 2007 among domestic carriers.
Round-trip flights on Spirit are still cheaper than practically every other airline, even after you account for fees. Spirit's average fare including ancillary fees is $126. That compares to $140 for the granddaddy of low-fare airlines, Southwest Airlines (LUV), and $181 for United Continental (UAL). The company has a $9 Fare Club program that costs $59.95 per year but gives customers access to special low fares and deals on baggage fees. It is the Costco of the airlines industry.
Spirit Airlines is an ultra low cost airline with the lowest costs and best margins in the U.S. airline industry. The company provides extremely low priced flights to a combination of vacation destinations, secondary markets and between selected major cities. Despite cramped flights due to more seats per plane and endless complaints about service, Spirit’s flights are full and the airline is profitable. They are the Value Village of airlines. If you think you’ve seen this before, well you have. In the 80’s we had People Express which was wildly successful until they tried to expand. Right now Spirit Airlines is exactly where People Express was just before they hit their best years. People Express' spartan, no-frills service earned the carrier several derisive nicknames, including "People Distress". We’ve seen it once, we’re going to see it again.
SAVE company continues to deliver strong growth with disciplined cost control, driving meaningful margin expansion. They have shown that their business model is effective in large domestic markets against the old school competitors. Spirit is going to continue its double-digit growth and there are plenty of battles to pick in the continental United States to go head to head with the fat cats and win.
Spirit planes are among the fullest in the airline industry. Forget about getting an empty seat next to you. This airline flies at between 85 and 90% capacity. It’s the airline that people love to hate, but love to fly more. They fly the same Airbus A320 as all of the other airlines, but they design their plane to hold 186 seats on the aircraft where other carriers have 150 to 160 seats.
For example, Spirit has been successful in developing the Dallas-Fort Worth (DFW) market alongside the existing operations of American Airlines and Southwest Airlines. There are many many opportunities just like this. The people in Dallas are no different than the people in any other major hub. They will behave similarly and will use the crap out of Spirit. Spirit targets all customers who are paying their own way, whether they are families towing lots of kids, students or others on tight budgets. Business travelers will never use Spirit.
Spirit, like the honey badger, doesn’t care. On Oct 30, Spirit reported its third quarter results and blew by the ANAL-ysts estimate by $0.10. Earnings were $0.79 compared to the ANAL-ysts prediction of $0.69.
It was the fourth earnings beat in a row. Revenue jumped 33.4% to $456.6 million. The gain was due to higher load factors and higher average passenger yields. Adjusted pre-tax margin rose to 20.3%, the highest quarterly adjusted pre-tax margin in the company’s history. Spirit is expected to have strong double digit earnings growth of 57% in 2013 and another 20.2% in 2014.
ANAL-ysts estimate that earnings will grow 54% this year over last to $2.20 a share and another 19% in each of the next two years. Spirit reported that September traffic rose 29% vs. a year earlier on a capacity increase of 25%. Spirit Airlines schedules every route to make money. If that fails, the company will change pricing or capacity, or pull the route. Spirit can charge a low price because it uses one airline type, the Airbus, making it easier to train pilots and mechanics.
It’s all about the money and Spirit is rolling in it. The rising tide in the airline business is allowing them to spread their elbows a little and grow without getting smacked.
Here’s what the boss has to say:
"I want to say thanks to our team members that contributed to our strong third quarter results. It is becoming clear that Spirit's customers understand that our ultra-low fares plus optional services offer them a total price that's tough to beat," said Ben Baldanza, Spirit's Chief Executive Officer. "Spirit is known for doing things differently than other air carriers, and we celebrate those differences because they allow us to offer our customers the freedom to pay for only what they value while earning a return for our shareholders.
We had a strong peak summer travel period, and I thank all of our team members who contributed to our success. It is becoming increasingly clear that Spirit's customers understand that our ultra-low fares plus optional services offer them a total price that's tough to beat.
We will be growing an average of 18% per year over the next five years. If Spirit were a retail store, we'd be the dollar store. If we were a restaurant, we'd be McDonald's.”
Well I am going to pull up to the drive through window and eat the entire dollar menu. Then for dinner I am going to head to Peter Luger’s and have a thick steak with the cash I made on this stock pick.
I am HUGE!
$$$MR. MARKET$$$
www.mrmarketishuge.com
Last edited by mrmarket; 11-29-2013 at 01:10 PM.
=============================
I am HUGE! Bring me your finest meats and cheeses.
- $$$MR. MARKET$$$
Today however, $$$MR. MARKET$$$ made a great SAVE! I sold SAVE today at 47.97. That’s a 15.5% gain over my purchase price of 41.55. That’s a 15.5% gain in only 2 months. That’s a 93% annualized gain. Over the same period, the S&P 500 was up 3.8%...nice try, but not nearly as good as $$$MR. MARKET$$$. How come index fund managers get paid 7 figure salaries to make the same as the S&P 500, when $$$MR. MARKET$$$ outperforms the S&P 500 by a landslide.
I mean are you serious? Those guys are lamo losers. They have skinny arms and fall down when someone bumps into them at a sports bar. $$$MR. MARKET$$$, on the other hand has HUGE arms and when someone bumps into him at a sports bar they are all black and blue because they think they ran into a brick wall.
I just can’t help it. I know the whole world wants to be like me, so all I can do to make them feel better is to share my stock picks with the whole world.
By the way, that makes 30 consecutive profitable trades of 15% or better. THIRTY! Can you do that? You? YOU?? YOU??? What do your friends tell you when you tell them you know a guy who has 30 consecutive profitable trades of 15% or better. Come on…tell me. I gots to know.
If you don’t tell me how much you like my picks, there may not be another one. So be nice. Are you all happy?
I am HUGE!!!
$$$MR. MARKET$$$
================================================== =============================
11-08-2013, 06:13 PM #1 mrmarket's Avatar mrmarket mrmarket is online now
Administrator
Join Date
Sep 2003
Posts
4,552
Default SAVE ==> The Middlebury Winner
Everyone on the planet knows that if you want to go on a trip, you can use any one of the travel sites to find out which flight is the cheapest. Inevitably, if Spirit Airlines flies the route you are looking for, it’s air fares will be the cheapest. People, who think they are so smart using their computer, click on the cheapest fare and buy a roundtrip ticket on Spirit Airlines. Excited about all of the money they are saving, they prepare for their trip. Let’s read some reviews:
“If you die and go to hell, Satan will bring you there on a Spirit Airlines flight.
I had two flight delays and then a cancelation of said flight. Called company to pay for the taxi that I needed to get me to a hotel for next-day flight. Guess what? They wouldn't reimburse.
They lost our bags...on a flight that NEVER TOOK OFF. How does that happen? No one knew where they disappeared to. I imagine that the bags were scared to get packed into a Spirit airplane and ran away.
Worst airline in America. The employees have to attend rude school before being hired. Don't let low price fool u. First flight from Myrtle Beach to Buffalo, direct flight and they lost my luggage. Did not see my bags for one week until we checked in for our return trip. Very little compensation for my inconvenience. Swore I would never fly again.
Flight #2 Ft Lauderdale to Atlanta checked and paid for three bags. Check in attendant dropped my golf bag on my leg which sliced a 3" gash in my leg. Nobody gave a shit. Promised to report same to HQ. Gave them my number and as usual no response. Shipped my golf bag home via FedEx (half price of Spirit) and they refused to credit the 3 rd bag on my return. Never, Never again. $9 club is bullshit as is their credit card. SPIRIT AIRLINES MEANS MEAN SPIRIT.”
…..and..
“If I can avoid ever flying Spirit again, I will.
The initial low prices that you see are just a ruse, because as you continue along the process of booking your flight, you'll find that there an additional cost for EVERYTHING. There's your price for the privilege of booking a ticket. There's a price for fuel. There's the price for taxes. There's the price for bringing on a carry-on bag. There's a price for selecting a seat--even if you select a middle seat in the last row right by the bathroom that doesn't recline. And then, when you're on board, hope you don't get thirsty, because there's even a charge for WATER.
In addition to draining your bank account, it seems that Spirit's second mission is to hobble you. I've never had so little leg room ever. After about an hour, my legs were insanely cramped. There was barely enough room to cross them. By the time my 4 hour flight ended, I worried gangrene might be setting in...”
Hmmmmm…..so the customers hate this airline, right? Why would you buy a stock in a company that EVERYONE hates? Simple….
Earnings earnings earnings
Today I bought Spirit Airlines (SAVE) at 41.55. I will sell it in 4 to 6 weeks at 47.97. Here’s why I like SAVE:
Yessir….this stock is taking off! It’s up 148% in the last 52 weeks. That’s about 12% per month. I like that momentum! The trailing PE is less than 20, that means the earnings are keeping up with the rising stock price. I like that too.
Spirit Airlines, Inc. provides low-fare airline services. It operates approximately 200 daily flights to 50 destinations in the United States, Latin America, and the Caribbean. They now have 51 Airbus single-aisle aircraft, consisting of A319s, A320s, and A321s.
So if this airline is so bad, how come it makes so much money? Spirit makes so much money because it takes so much of your money:
You pay for carry on bags. Your seat doesn’t recline so they can fit more passengers on their planes. They cancel your reservations before the plane takes off so they can squeeze more people on before they close the door.
Spirit doesn’t like to cancel flights because they can’t put their passengers on other planes which are already full. Instead they make them wait in the airport…suckers they already paid! Actually, more than 99% of their flights are completed even though they are late quite a bit.
But Spirit isn’t so bad. Spirit Airlines targets leisure travelers who might not even fly but for the bargain prices it offers on base fares. Over the last 5 years, despite rising fuel and wage costs, they still reduced their average ticket prices by 20 percent. The average ticket price is $75 bucks. But that is ticket price before fees. The extra fees add up to a LOT! The fees usually add up to more than 40% of the ticket cost. The good news is that the other airlines are also adding these extra fees, which allows Spirit to sustain them. Baggage and cancellation fees have increased by 650 percent overall since 2007 among domestic carriers.
Round-trip flights on Spirit are still cheaper than practically every other airline, even after you account for fees. Spirit's average fare including ancillary fees is $126. That compares to $140 for the granddaddy of low-fare airlines, Southwest Airlines (LUV), and $181 for United Continental (UAL). The company has a $9 Fare Club program that costs $59.95 per year but gives customers access to special low fares and deals on baggage fees. It is the Costco of the airlines industry.
Spirit Airlines is an ultra low cost airline with the lowest costs and best margins in the U.S. airline industry. The company provides extremely low priced flights to a combination of vacation destinations, secondary markets and between selected major cities. Despite cramped flights due to more seats per plane and endless complaints about service, Spirit’s flights are full and the airline is profitable. They are the Value Village of airlines. If you think you’ve seen this before, well you have. In the 80’s we had People Express which was wildly successful until they tried to expand. Right now Spirit Airlines is exactly where People Express was just before they hit their best years. People Express' spartan, no-frills service earned the carrier several derisive nicknames, including "People Distress". We’ve seen it once, we’re going to see it again.
SAVE company continues to deliver strong growth with disciplined cost control, driving meaningful margin expansion. They have shown that their business model is effective in large domestic markets against the old school competitors. Spirit is going to continue its double-digit growth and there are plenty of battles to pick in the continental United States to go head to head with the fat cats and win.
Spirit planes are among the fullest in the airline industry. Forget about getting an empty seat next to you. This airline flies at between 85 and 90% capacity. It’s the airline that people love to hate, but love to fly more. They fly the same Airbus A320 as all of the other airlines, but they design their plane to hold 186 seats on the aircraft where other carriers have 150 to 160 seats.
For example, Spirit has been successful in developing the Dallas-Fort Worth (DFW) market alongside the existing operations of American Airlines and Southwest Airlines. There are many many opportunities just like this. The people in Dallas are no different than the people in any other major hub. They will behave similarly and will use the crap out of Spirit. Spirit targets all customers who are paying their own way, whether they are families towing lots of kids, students or others on tight budgets. Business travelers will never use Spirit.
Spirit, like the honey badger, doesn’t care. On Oct 30, Spirit reported its third quarter results and blew by the ANAL-ysts estimate by $0.10. Earnings were $0.79 compared to the ANAL-ysts prediction of $0.69.
It was the fourth earnings beat in a row. Revenue jumped 33.4% to $456.6 million. The gain was due to higher load factors and higher average passenger yields. Adjusted pre-tax margin rose to 20.3%, the highest quarterly adjusted pre-tax margin in the company’s history. Spirit is expected to have strong double digit earnings growth of 57% in 2013 and another 20.2% in 2014.
ANAL-ysts estimate that earnings will grow 54% this year over last to $2.20 a share and another 19% in each of the next two years. Spirit reported that September traffic rose 29% vs. a year earlier on a capacity increase of 25%. Spirit Airlines schedules every route to make money. If that fails, the company will change pricing or capacity, or pull the route. Spirit can charge a low price because it uses one airline type, the Airbus, making it easier to train pilots and mechanics.
It’s all about the money and Spirit is rolling in it. The rising tide in the airline business is allowing them to spread their elbows a little and grow without getting smacked.
Here’s what the boss has to say:
"I want to say thanks to our team members that contributed to our strong third quarter results. It is becoming clear that Spirit's customers understand that our ultra-low fares plus optional services offer them a total price that's tough to beat," said Ben Baldanza, Spirit's Chief Executive Officer. "Spirit is known for doing things differently than other air carriers, and we celebrate those differences because they allow us to offer our customers the freedom to pay for only what they value while earning a return for our shareholders.
We had a strong peak summer travel period, and I thank all of our team members who contributed to our success. It is becoming increasingly clear that Spirit's customers understand that our ultra-low fares plus optional services offer them a total price that's tough to beat.
We will be growing an average of 18% per year over the next five years. If Spirit were a retail store, we'd be the dollar store. If we were a restaurant, we'd be McDonald's.”
Well I am going to pull up to the drive through window and eat the entire dollar menu. Then for dinner I am going to head to Peter Luger’s and have a thick steak with the cash I made on this stock pick.
I am HUGE!
$$$MR. MARKET$$$
www.mrmarketishuge.com
Last edited by mrmarket; 11-29-2013 at 01:10 PM.
=============================
I am HUGE! Bring me your finest meats and cheeses.
- $$$MR. MARKET$$$
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