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Tilson After Buying Spirit Airlines Stock: I Flew Airline And Here's What Happened

Tilson After Buying Spirit Airlines Stock: I Flew Airline And Here's What Happened
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Spirit Airlines: An Undervalued Airline Stock (GuruFocus)
  • Whitney Tilson, founder and Managing Partner of Kase Capital Management, recently disclosed a new stake in Spirit Airlines Incorporated (NASDAQ: SAVE).
  • To better understand how the company where he put his money down works, he decided to travel in its planes this week.
  • On Thursday, he published an article on SeekingAlpha sharing his experience and impressions.

Given Spirit Airlines' well-known customer service problems, Tilson feared the worst when he was about to board his first Spirit flight on Tuesday. However, he was "very, very pleasantly surprised by every aspect" of his experience. Moreover, his impression was that the other passengers (about 300) in his two flights had similar experiences.

Related Link: Whitney Tilson Names Spirit Airlines Favorite Long Idea, Wayfair Top Short

Of course, investors should notice this was just one anecdote "and the plural of anecdote isn't data," he said. However, what Tilson observed overall "in particular, the customers Spirit serves, how it's handling potential areas of customer dissatisfaction, and how it both generates extra revenues and keeps costs low" make him increasingly bullish on the future of Spirit Airlines.

Furthermore, even though the stock gained roughly 20 percent since his first article was published three weeks ago, the shares remain "exceptionally cheap at ~10x earnings."

Disclosure: Javier Hasse holds no positions in any of the securities mentioned above.

Latest Ratings for SAVE

Apr 2017Imperial CapitalMaintainsOutperform
Jan 2017Cowen & Co.DowngradesOutperformMarket Perform
Dec 2016BarclaysInitiates Coverage OnEqual-Weight

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Posted-In: Kase Capital Management SeekingAlpha Whitney TilsonAnalyst Color Analyst Ratings Best of Benzinga


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