My Hawaii Stock
Continental Airlines Inc.
Monday’s Intra-day Price: CAL – $40.23
I wanted to research a Hawaii based company prior to leaving for my trip tomorrow but all I found was junk (in my opinion of course). So, instead of wasting my time, I decided to research my airline but must note that I don’t invest in this industry group due to multiple reasons that may be obvious to some. No need for a disclosure because I don’t own shares or plan to own shares in Continental Airlines or any of their competitors.
It’s the best I can do with the limited selection of Hawaiian companies that trade publicly. Here are a few I found but none of them were interesting to me:
ALEX, BRN, HA, HE, MLP, BOH
Next Earnings Date: 4/19/07
Sector: Industrials
Industry: Airlines
Analyst Stat: S&P has a 12-month target of $65 with a strong buy rating (5 stars)
Institutional Analysis:
Held by Institutions: 95%
Money Market: 286
Mutual Fund: 416
Other: 13
Top Holder: Capital Research and Management Company
4.65 mil Shares for < 0.01% of Portfolio
Total Equity Value of Portfolio: $574.0 billion
Other Major Institutional Holders:
AXA, 4.40 mil shares
Barclays Global Investors UK Holdings Ltd, 4.34 mil shares
Seminole Management Company, Inc., 4.3 mil shares
Atalanta/Aosnoff Capital LLC, 3.2 mil shares
JP Morgan Chase & Company, 3.01 mil shares
BlackRock Group Limited, 2.5 mil shares
I guess I invest in Continental (CAL) in another way: miles! We use the continental credit card extensively to earn one-pass miles and also use our Amex to transfer points from time to time if needed. Out tickets to Hawaii are free for this trip due to the one-pass miles we have accumulated over the past year or so. I once looked for a way to charge my mortgage to my credit card to get points (that’s one hell-of-a point builder each month) but that wasn’t possible. But we do charge everything else to the card so we can fly for free (and we pay in full like a debit card to prevent any debt buildup).
Anyway, the stock can actually qualify for a technical screen that I run that looks for stocks trending along the 200-d moving average. It has caught support in this area three times over the past two years with a current buying opportunity for those that are interested (right now). The stock recently corrected by 20% from its 52-week highs and caught support along the major moving average above $36.
Key Fundamental Numbers:
Market Cap.: $3.9B
Outstanding Shares: 96.5M
Profit Margin: 2.81%
Net Income $M: 389
ROA (%): 3.6
ROE (%): 135
P/E (TTM): 12.35
P/E (Forward): 11.4
Price to Sales Ratio: 0.30x
PEG Ratio: 1.09x
Price to Book Ratio: 11.19x
Earnings:
Yearly (2008): $5.45E
Yearly (2007): $5.86E
Yearly (2006): $2.72
Yearly (2005): ($2.93)
Yearly (2004): ($4.32)
Revenue (millions):
Yearly (2006): 13,128
Yearly (2005): 11,208
Yearly (2004): 9,899
Yearly (2003): 9,001
Yearly (2002): 8,511
Continental Airlines, Inc. (Continental) is a United States air carrier engaged in the business of transporting passengers, cargo and mail. The Company operates more than 2,700 daily departures, together with its wholly owned subsidiary, Continental Micronesia, Inc., and regional flights operated on its behalf under capacity purchase agreements with other carriers. As of December 31, 2006, Continental flew to 136 domestic and 126 international destinations, and offered additional connecting service through alliances with domestic and foreign carriers. Continental operates in two segments: mainline and regional. The mainline segment consists of flights to cities using jets with a capacity of greater than 100 seats. As of December 31, 2006, the regional segment consisted of flights with a capacity of 50 or fewer seats. The regional segment is operated primarily by ExpressJet Airlines, Inc., and beginning in January 2007, Chautauqua Airlines, Inc., through capacity purchase agreements.
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