Was I Wrong to Doubt This Company?http://www.fool.com/investing/general/2013/02/19/was-i-wrong-to-doubt-this-company.aspx Brian Stoffel
February 19, 2013
At the beginning of 2012, I called out ultra-low-cost Spirit Airlines (NASDAQ: SAVE) as the company I would be avoiding at all costs. Well, since then, the company's stock is up 27%, besting the S&P 500 by about 5 percentage points.
Today alone, Spirit's stock is up as much as 7% on earnings being released. Read below to see if I've changed my tune about the airline, and at the end, I'll offer access to a special free report on our top stock for 2013 here at the Motley Fool.
First, just the facts
Spirit came out this morning and reported a $0.03 beat on earnings, and healthy revenue growth of almost 20%. That, combined with the fact that the company is rapidly expanding its footprint across North and Central America -- adding 27 new routes between October 2012 and June 2013 -- meant investors were more than happy to buy up shares today.
I haven't liked this model from the start
But Spirit has taken "optional fees" to a ridiculous level. On a round-trip flight, you could pay up to $20 just for an agent to print your boarding passes; $200 for two carry-on bags; $200 for two checked bags; $3 for a glass of water... the list goes on and on. See if you can figure it all out at their