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Stocks F / Frontier Airlines, Inc.

URL:  http://boards.fool.com/id-probably-bale-out-and-at-least-save-some-26553023.aspx

Subject:  Re: Why shouldn't I be buying like crazy? Date:  4/10/2008  10:45 PM
Author:  Nuke68 Number:  570 of 580

I'd probably bale out and at least save some money. I'm getting more convinced that they may not last another year. The last couple of days there has been heavy volume (over 2x normal) and the stock has been going down, so I am assuming it's on the sell side of things. Over 20% of their shares are short (way above most other airlines). At the end of Dec they only had $170M in cash.

Story on Marketwatch (link below) states that
"Among the low-cost carriers, Calyon said Frontier Airlines and AirTran Holdings could see their cash fall below 10% this year. Some analysts expect Frontier to run out of cash by as early as the end of this year.

http://www.marketwatch.com/news/story/network-carriers-face-down-liquidity/story.aspx?guid=%7B0A3B81C2%2DE7C9%2D442C%2DB330%2DFD2A290539B4%7D&siteid=yhoof

Oil is a huge problem for all carriers, but it comes down to how much they can stand to lose (American, Continental, Southwest, etc have serveral Billion dollars in cash). Unfortunately FRNT is one that didn't have a lot of cash to start the year with.


Author owns LUV, AAI and JBLU
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