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Best of the Best: Today's Top Investment Ideas
Say aloha to Hawaiian Holdings (HA) Print E-mail Digg It!
Monday, 12 May 2008

 Hawaiian Holdings (ASE: HA), with a market cap of $400 million, is the latest Stock of the Month from noted growth and value specialist Dennis Slothower, editor of Stealth Stocks.

"Hawaiian Holdings is a holding company whose primary asset is the sole ownership of all issued and outstanding shares of common stock of Hawaiian Airlines, Inc.

"Based on the total number of miles flown by revenue passengers in 2007, Hawaiian was the largest airline headquartered in Hawaii and the sixteenth-largest domestic airline in the United States.

"It offers daily service on transpacific routes between Hawaii and the US, daily service among the Hawaiian Islands and additional service toAustralia, American Samoa andTahiti.

"As of December 31, 2007, Hawaiian operated a fleet of 11 Boeing 717-200 aircraft for its interisland routes and 18 Boeing 767-300 aircraft for its transpacific,South Pacific and charter routes.

"The Dow Jones Transportation index has been rallying,and that tells me the market is expecting crude oil prices to begin heading lower. If that is the case, then HA will benefit, since fuel prices have a huge impact on an airline’s existence.

"I first recommended HA at $6 and it has risen sharply since. But my numbers tell me that HA should continue to head higher.This is a contrarian play,and like the prospects of a correction in crude oil, this is stock that could run and soar rather quickly.

"According to my estimates, HA should be selling in the mid-teens over the next three to five years. It is currently trading in the high $8 range, so HA has large upside potential."




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