Southwest Airlines: Shaken, Not Stirred for Success!

A Martini of Change

Moneypenny darling seems like even the airline industry is getting a facelift these days. Deutsche Bank bless their number crunching hearts has upgraded Southwest Airlines to a 'buy.' Apparently a deal with Elliott Investment Management has them feeling optimistic. They're predicting a near 22% upside. I must say that's enough to make even Goldfinger crack a smile. As Auric Goldfinger once said to me ‘Do you expect me to talk?’ Well in this case the market is doing all the talking and it's saying Southwest Airlines is ready for take off!

Board Games: Licence to Thrill

It appears that Elliott with their 11% stake has given Southwest a much needed shot in the arm. Six new directors on the board ensuring continuity of CEO Bob Jordan preventing a proxy fight. A well played move if I may say so myself. ‘A trick I picked up in Istanbul.’ They’re calling it the largest transformation in the company's history. Let's hope it involves fewer exploding pens and more shareholder value.

Flying High: Skyfall for Competitors?

Southwest has been showing off hasn't it? Up nearly 21% in the past month. The analyst a certain Michael Linenberg believes this new board is ushering in a 'new era of change.' The words 'meaningful revenue and earnings growth' are being bandied about. It seems that their strategic initiatives have the potential to soar above the clouds.

ROIC: The Name's Investment Return on Investment

Linenberg is quite keen on Southwest's potential for Return on Invested Capital or ROIC. Apparently improved ROIC leads to 'outsized share price performance.' As I always say Moneypenny 'the key to a successful mission is proper execution.' It seems Southwest is ready to execute a financial turnaround and put their company back on the map.

Wall Street's View: A View to a Kill?

Not everyone is convinced of course. Twelve out of 23 analysts are still playing it safe with a 'hold' rating. But I always say trust your instincts and perhaps a well placed source or two. But do not worry it seems that Southwest is ready to take off despite Wall Street's skepticism.

Casino Royale: A Risky Gamble?

All in all this sounds like a promising venture even for a seasoned gambler like myself. But as always I would proceed with caution. After all as I’ve learned over the years “Never say never again.” However this play by Southwest Airlines seems to be full of rewards. I will surely be keeping my eye on it.