Through TheFLY's Eyes:UAL Corporation

from Theflyonthewall.com












One Very Cheap Stock

What have been two of the best performing stocks in the past few years? AMR Corp (AMR) and Continental Airlines (CAL), two airline stocks.

UAL Corporation (UAUA), owner of United Airlines, came out of bankruptcy earlier this year. The stock began trading at $35 and then ran up to the low $40s. However, with the stock market correction in the late spring and early summer, UAL's stock has dropped to $24. Here are UAL's numbers:

* Market Cap of $3.5 billion
* $5.1 billion in cash
* Operating cash flow of $700 million in the most recent quarter
* Grew revenue 16%
* Has $8.0 billion of debt post bankruptcy
* And is profitable

United is a solid company. The reason why United filed for bankruptcy was the debt left over from a LBO in the 1990s. With that debt gone, it can now generate a lot of profit and compete on cost if it needs to.

This value stock appears poised to be at least double over the next few years, similar to the moves of Continental and American.