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VIC NYC : Mohnish Pabrai Favorite stock Is Pinnacle Airlines

By admin - Posted on November 30th, 2007
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At the Value Investing Congress meeting in New York, Mohnish Pabrai told why he likes Pinnacle Airlines (Nasdaq: PNCL). Pabrai owns 14-16% of Pinnacle Airlines.

Pabrai's notes on Pinnacle Airlines: No fuel price risk, no ticket price risk. No impact of passenger load factors.
Pinnacle is a capital leasing company.Pinnacle is the lowest cost operator. New deal with Northwest that allows them to fly airplanes with 76 seats versus 50 seats before.

Pabrai actually sold all his shares in Pinnacle Airlines (Nasdaq: PNCL) last year, but he realized that was a mistake and in the past year bought back all his shares plus more in Pinnacle Airlines. It is a high ROE business. Pabrai is a deep value investor that follows Warren Buffet's strategies.

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