ChartWatchCentral Premium Stock Picks

A Lifting Experience
by
Christina Nikolov
Founder/CEO, ChartWatchCentral, Inc.

Date: April 21, 2006
Company: Frontier Airlines Holdings
Ticker: FRNT
Price: $6.63
Opinion: Bullish
Comments: Since the company's reorganization plan was approved by shareholders March 27th, the shares of Frontier Airlines Holdings (FRNT) gradually drifted back to the February 2nd low of $6.43. Simply put, the plan called for Frontier Airlines, Inc., a Colorado corporation, to become a wholly-owned subsidiary of Frontier Airlines Holdings, a Delaware corporation. Anyone owning shares of Frontier Airlines, Inc. on the day of the conversion, saw their positions automatically convert into the same number and percentage of shares of newly formed Frontier Airlines Holdings, Inc. With the shares currently sitting near their lowest level in three years, this a spectacular opportunity to initiate a position. Why? The company, which is Denver International Airport's second largest jet service carrier, has the youngest fleet in North America. And for the past seven consecutive years, 100% of the company's maintenance and engineering employees have completed advanced aircraft maintenance training programs. As a result, the Federal Aviation Administration awarded Frontier's maintenance and engineering department their highest award, the Diamond Certificate of Excellence. At the same time, Frontier is enticing travelers to fly to their destinations, rather than drive, by adding very affordable service to 23 markets. Evidently, their plan is working. After all, preliminary traffic results for March 2006 indicated that revenue passenger miles rose 14.5% over the same period last year. Meanwhile, the load factor of 81.3%, inched 1.9% higher since March 2005. Lastly, the airline carried 771,587 passengers during March 2006, an 18.1% leap from March 2005. FRNT is currently trading at 0.25 times sales, 1.02 times book value and 12.9 times cash flow, compared to respective industry averages of 0.85, 3.28 and 14.4. To profit from this opportunity, we suggest buying the shares now. Or if you wish to achieve a little more bang for your buck, you could purchase the January 2007 $5 call (ticker: ZRFAA), which was last offered at $2.40.

*Note: When the January 2007 $5 call is no longer a 'LEAP', the symbol should change to FUOAA.

Disclaimer - The investor is aware and agrees that if they choose to invest in any recommendation posted on ChartWatchCentral's website, they are doing so totally at their own risk. ChartWatchCentral will not be held liable for any losses or negative impacts which might result from investing in these picks.