Allegiant Travel Company (NASDAQ:ALGT)

CAPS Rating: 2 out of 5

The Company is a leisure travel company focused on linking travelers in small cities to world-class leisure destinations such as Las Vegas, Nevada, Orlando, Florida and Tampa/St. Petersburg, Florida.

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Member Avatar rbrowning585 (38.49) Submitted: 5/11/2007 11:54:11 PM : Outperform Start Price: $29.52 ALGT Score: +124.36

An airline firmly in their niche...

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Member Avatar fool4moreprofit (< 20) Submitted: 4/10/2007 7:54:58 PM : Outperform Start Price: $31.98 ALGT Score: +103.80

Expanding markets to less competitive airports, should pick up some nice business from United in Oregon and Washington market. One of the safer airlines to fly. Fleet maintained by American airlines, who doesn't outsource major mechanic work to foreign NON FAA APPROVED repair centes!

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Member Avatar chpgator (< 20) Submitted: 4/9/2007 7:14:53 PM : Outperform Start Price: $31.03 ALGT Score: +109.64

This airline offers non-stop service and low-cost fares to Florida and Vegas. The target market is small towns in the upper midwest, where these destinations are highly desirable. Non-stop flights from most of the target cities is non-existent and a real bonus, particularly in the winter and spring when the weather can make stops in major hubs like O-Hare a major "gamble."

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Member Avatar NetscribeTransp (53.14) Submitted: 3/21/2007 8:46:50 AM : Outperform Start Price: $33.22 ALGT Score: +93.77

Allegiant Travel Company is a travel company focused on linking travelers in small cities to destinations, such as Las Vegas, Nevada, Orlando, Florida and Tampa/St. Petersburg, Florida. The company operates a low-cost passenger airline marketed to leisure travelers in small cities, allowing them to sell air travel on a stand-alone basis or bundled with hotel rooms, rental cars and other travel-related services.

During end of 2006, it completed initial public offering with aim to use net proceeds of around $94.5 millions to retire $0.9 million of secured debt owed to chief executive officer; to purchase additional aircrafts, implement its growth strategies and to fund general corporate purposes like working capital.

Revenues and available seat miles for the company have grown at phenomenal CAGR of 81.9% and 89.6% respectively, from 2002 to 2006. It focuses a lot on controllable cost. As a result its total system Cost per Available Seat Mile (CASM) excluding fuel, declined for the fourth year in a row, to an industry low of 4.15 cents. It achieved this industry-leading cost with only 6.7 hours per day utilization on aircraft fleet, compared to industry average which is almost twice. With 80.7% it has one of the best load factors in low cost carriers industry. Its fleet size has increased to 26 aircrafts.

The company believes in direct relation with customer and no middle man policy. Direct sales contribute around 86% to sales. Consequently in the process it achieves low distribution costs. Growth strategies include adding flights on existing routes, entering additional small cities, expanding relationships with premier leisure companies, and providing service to more world-class leisure destinations. Thus it’s expected to grow in future and increase profitability, with strategy to offer a single class of air travel service at low fares, while maintaining high quality standards and further control on costs.

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Member Avatar roses4 (90.48) Submitted: 2/8/2007 12:24:27 AM : Outperform Start Price: $33.57 ALGT Score: +93.92

always full planes, pretty large planes, no frills, comfortable seats

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Member Avatar kealaw (87.69) Submitted: 2/1/2007 4:12:52 PM : Outperform Start Price: $33.99 ALGT Score: +91.51

Low overhead with a popular destination (Las Vegas)

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Member Avatar WilliamCrook2003 (70.20) Submitted: 1/12/2007 4:45:40 PM : Outperform Start Price: $28.08 ALGT Score: +130.05

This company will make lots of money due to filling in the airline service sector which is not met currently by other airlines. It services small cities which other airlines do not . For example it has a contract with major hotels in las vegas to provide flights for tourists there. This company has bags of potential also it is a recent IPO the share price can only go up in the long run.

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Member Avatar EPStowe (70.27) Submitted: 12/15/2006 4:37:32 AM : Outperform Start Price: $28.22 ALGT Score: +128.78

US Airline consolidation is likely to support the stock price.

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