lasdc9

About Pinnacle Airlines, and Concentrated Risk

Airline stocks are not investments they are for day traders and gamblers. Regional airlines like Pinnacle are even more so, since their very existences are tied to the major carrier they code share with.

Pinnacles balance sheet is so closely tied to Northwest and now Delta that the earnings of Pinnacle are nothing more than manipulated figures of Delta and Northwest whims.

I once worked for an airline called West Air it was the Commuter Airline of the year in 1999 grew into a large regional airline and split in two, West Air and Atlantic Coast Airlines, then United pulled the code share contract and both West Air and ACA were gone.

It appears to me that Mohnish is nothing more than a big risk taker who hopes to hit one out of the park, but unfortunately keeps striking out.