How Successful Investors Get RICH

Learn everything you need to know in 'The Canadian Guide on How to Invest in Stocks Successfully' for FREE from The Successful Investor.

How to Invest In Stocks Guide: Find 10 factors that make your investments safer and stronger.

 I consent to receiving information from The Successful Investor via email. I understand I can unsubscribe from these updates at any time.

Topic: How To Invest

Best Canadian Stocks: Hidden assets help WestJet profits soar

Investment Advice

Every Tuesday we bring you “Best Canadian Stocks.” You get our specific recommendations on the stocks we profile, with a full explanation of how we arrived at our opinion. You’ll read about stocks making moves you should know about, from coverage  in one of our three newsletters featuring Canadian stocks—The Successful Investor, Stock Pickers Digest and Canadian Wealth Advisor.

WESTJET AIRLINES (Toronto symbol WJA; www.westjet.com) serves 91 destinations in North America, Central America, the Caribbean and Europe. Its fleet of 109 modern Boeing 737s are 30% more fuel efficient than older jets.

In June 2013, the company launched WestJet Encore, its Canadian regional airline. This business now operates 14 Bombardier Q400 NextGen turboprop planes, which seat 78 passengers.

In the three months ended September 30, 2014, WestJet’s earnings, excluding one-time items, jumped 30.9%, to a third-quarter record of $85.4 million from $65.1 million a year earlier. Earnings per share gained 32.0%, to $0.66 from $0.50, on fewer shares outstanding. This was WestJet’s 38th consecutive quarter of profitability. Revenue rose 9.2%, to $1.0 billion from $924.8 million.


The conservative approach to aggressive investing

The investor’s dream—catch a rising stock that will pay off, and not come crashing down. That’s what subscribers to Stock Pickers Digest discover: rising stocks they can invest in with confidence. They get Pat McKeough’s conservative approach to aggressive investing, a search for hidden value that yields big gains without excessive risk.

The biggest jump has come from Alimentation Couche-Tard since Pat made it his Aggressive Stock of the Year three years ago, up 361% and still reaching new highs. But each of his last two #1 picks have also achieved new highs.

Pat has just released his #1 Aggressive Stock of the Year. You can get the full details at a special price. As a new subscriber to Stock Pickers Digest you can save $50.00. Plus you will immediately start getting updates and recommendations on stocks making moves you should know about in our weekly Email Hotline. Click here to begin your no-risk subscription right away.


Stock picks: Cheaper fuel is major cost saving for WestJet

The Canadian airline market is highly competitive, especially with Air Canada expanding its Rouge budget airline to more leisure destinations in Europe, the Caribbean, Mexico and the U.S.

As well, WestJet’s competition may soon include U.S. competitors such as discount carrier Southwest Airlines, which is considering expanding internationally, and has discussed being in Canada before the end of the decade.

WestJet has jumped to new all-time highs this year as jet fuel prices continue to drop along with oil prices. Fuel makes up around a third of an airline’s operating costs.

Meanwhile, the company has a great hidden asset in its workforce, which continues to refrain from unionizing in favour of co-operating directly with management.

WestJet’s 1,250 pilots have just voted in favour of its recently negotiated labour agreement. The previous deal expired on April 30, 2013, and the new one will be effective until April 30, 2019.

Many flyers find that WestJet provides friendlier service than they get from unionized airlines. The company also benefits from the fact that most of its employees are also shareholders.

WestJet is a buy recommendation of our advisory on more aggressive investing, Stock Pickers Digest.

Coming up Next

Tomorrow in our Investor Toolkit we look at how you can take money out of your RRSP—and make it stronger.

Comments

  • A note of caution: they overbook your luggage and trying to find out status of baggage is amajor hassle. Better hold on to your stuff, it may be all over the network.

Tell Us What YOU Think

You must be logged in to post a comment.

Please be respectful with your comments and help us keep this an area that everyone can enjoy. If you believe a comment is abusive or otherwise violates our Terms of Use, please click here to report it to the administrator.