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No. of Recommendations: 3

mvandraren writes:
I only caught this out of the corner of my ear the other night, but I heard on the evening news that several of the major airlines may be going on strike here in the not to distant future.

Does anyone have any thoughts on how this might affect Frontier? I can only see it as having a positive impact: Less competition, more new customers, broader customer base...

Delta seems to be the biggest complainer right now, but they hold less than 5% of the DIA volume (40% of Frontier's), so any impact they will have is going to be trivial. Frontier's biggest ally when it comes to strikes is United (with just under 75% of DIA's traffic). If anyone can help Frontier get more customers, United is the guy and I'm happy to say they've been doing their best last year. I've been wondering who I can write to encourage more of this behavior.

In truth, the best customer getter is the service -- not just a smiling flight attendant, but the ability to give customers what they want. Departures and arrivals on time, a smooth flight. Frontier is very good at that. I hope they stick to that "feature".

joyryde writes:
I was interested in investing in Frontier within 2 weeks. Does anyone know of a reason (based on historical stock splits) why I would want to invest BEFORE or AFTER the stock splits? I understand that it will have no effect unless you owned it already, but will there be a reason to invest sooner or later BECAUSE of a split?

From personal experience with stocks like CSCO, INTC and a few others, there's some fluctuation around the time of the split, but there's no real pattern. Sometimes the spike is up before and down after, other times it's down before and up after. Five years ago I still tried to time it, but I don't do that any more. I've never been successful at that. My advice is that in the long run it makes absolutely no difference. The market adjusts to performance and it's performance that sets a stock's valuation. Even if you guess this right, you're only talking about a couple of percentage points one way or the other.

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