ALGT:The Little Airline that Could
November 6, 2008 – 9:03 amWe’ve reached the point where it is safe to say that Allegiant is no longer an unknown (or undervalued) player on the street. That is, while every other airline stock has tanked this year along with the rest of the market, ALGT is up 20%. It hit a 52-week high last week above $43 and is now hanging around $38. Jesup & Lamont, a small bank in New York, just initiated coverage on ALGT and nailed it in there coverage statement: ”Allegiant Travel is a way to gain exposure to the airline industry without actually buying an airline stock.”
Now, the stock is trading at a P/E ratio above 36 right now, so it is not exactly an inexpensive time to get into the stock. I’m not advising that. This is more about a little company that is up 20% on the year, with good reason, while the NASDAQ is down nearly 40%.
