very profitable airlines

6.3

eric

recommended on msn

Yield: 3%.
Sliced through its 200-day moving average line Thursday morning then recovered, climbing back above it. It changed its ADS ratio to 1 common share per ADS, from 5 shares Thursday, which may have contributed to the swing.

AIRLINES(REGIONAL) - CHILE

CANSLIM
Latin America

Simply put LAN has a phenominal grasp on the airline industry and how to manage their risk while maximizing profits. They put a great deal of focus on their cargo division which makes them more immune to security threats that would otherwise kill revenue streams for the average carrier. In addition, they pack more passengers onto their planes than their US & European counterparts. LAN is retiring their older aircraft as quickly as possible and this is producing huge bottom line returns as their fuel costs come down exponentially. This is a great play on the current South American growth we are experiencing. LAN also has codeshares with a number of international airlines which allows them to capitalize on cheap exports. Stock has yet to have a serious pull back in 6 months; the Hugo Chavez nationalization scare was barely a blip for LAN. If I had to bet my life on a single stock, this would be it. Been behind this stock for close to a year and it has more than doubled, with still plenty of upside remaining.

IBD 97
screening method yielded 54.3%

Still need acquisitions in S.A to maintain growth. They should buy a controlling stake in TAM

may bounce back