Replies to post #146185 on Value Microcaps Motherboard

[researcher59]

Wade: HA is a very small airline relative to the big carriers. Historically HA has always traded at a discount to its bigger peers.

I think the weakness is a good opportunity to accumulate a position .... I bought a small <1% holding yesterday at $6.52 and added this morning at $6.40. Since I'm buying, I'll be happy if it keeps dropping ! The cheaper the better.

[nelson1234]

Wade/r59/abh/cliff/bob et al re HA

I took a look at HA when it was mentioned here a while back. I kinda liked it, but didnt buy any yet.

My DD was kinda cursory, and I'm going by memory, I'm not saying this is any reason not to buy, but anyways...

First, I believe Capex exceeds Depreciation and Amortization by a ton...way way more than other airlines. And, if I recall correctly, their deprec/amortization is much lower (percentage wise) than their peers. This, imo, may 'artificially' pump up their p/e relative to their peers....perhaps on a cash flow basis the comps may not be as strong (I didnt compare cash flows).

Second, their tangible book is kinda low relative to their peers.

Third...its near its 52wk high, and its a economic cyclical..two year high is around eight bucks. I'm just not sure how much upside this has; even cyclicals with great earnings are having difficulties moving up.

best.