Citing its financial strength, liquidity and ability to pay dividends, SkyWest (SKYW) lifted its quarterly last Tuesday by a penny, to four cents a share. This is the first hike since February 2004. Investors of record Dec. 31 will receive the new dividend Jan. 5. The ex-date is Dec. 29. Payouts have been made since 1987. SkyWest also resumed repurchasing its common. Under its current program, it can buy back up to 5.5 million of its shares. The stock has been trading at about 12 on Nasdaq, less than half its 52-week high. Yield: 1.35%. One of the nation's biggest regional carriers, SkyWest is the holding company for SkyWest Airlines in Utah and Atlantic Southeast Airlines in Atlanta. It serves 216 U.S. cities, Canada, Mexico and the Caribbean. In the 10 years through 2007, it posted compound annual growth rates of 24.1% for revenue, 20.3% for operating income and 14.1% for net income. This year, however, SkyWest, which operates as a Delta, United and Midwest Air connection carrier, is losing earnings altitude. Standard & Poor's points out that it continues to be hurt by schedule reductions at its major-airline customers, a contract dispute with Delta and a loss of revenue from financially troubled Midwest. Nine-month net fell to $91.7 million, or $1.55 a diluted share, from $118.3 million, or $1.83, while revenue rose to $934.1 million from $875.6 million.

33%

PE of 7, a PEG of 0.7, and it pays a yield of 0.7%.

7.5

11.1 PE; P/B 1.30; 23.6% Annual EPS Growth; 8.5% 5 Yr. Div Growth

Making money, not lifted with rest of sector

7.2 9.30% 1490

Downgraded by JP Morgan from Overweight to Underweight

growth in SW Utah

SkyWest, a regional airline based in St. George, Utah, is buying back about 7.8% of its float. Fried likes buybacks because they reduce outstanding shares and thereby boost earnings per share. Buybacks are also a signal from management and the board that they believe the company stock is undervalued and represents a good investment of corporate cash.

Best run airline in the world. Great team responds fast to changes and can see the future