David Taylor, MBA, CFA Skywest Inc SKYW-Q BUY May 27, 2003

Stockchase Research Editor: Michael O'Reilly SKYW is a US regional airline that services also into Canada and Mexico. As the rollout of vaccines begins, we can expect travel to build again soon making this a good entry level. It trades just above book value and at a current PE at 22x is cheaper than its peers. It just reported earnings that produced a profit along with increasing cash flows, despite analysts expectations for a loss. We would trade this with a stop-loss at $27, looking to target $56 (20% upside). Yield 0% (Analysts’ price target is $55.33)

(A Top Pick Dec 03/20, Up 21.6%)Stockchase Research Editor: Michael O'Reilly Our PAST TOP PICK with SKYW has achieved its $56 objective. To be disciplined, we recommend covering 50% of the position and trailing up the stop to $36.

Stockchase Research Editor: Michael O'Reilly SKYW is again reiterated as a TOP PICK. This US regional airline that services also into Canada and Mexico, is a good candidate to benefit as the rollout of vaccines continues. No doubt Omicron has slowed the recovery, but SKYW has better managed pilot shortages than its competitors and it is reflected in recent earnings that beat analyst estimates by 54%. It trades just under book value. We recommend trailing up the stop (from $27) to $30, looking to target $60 -- 44% upside potential. Yield 0% (Analysts’ price target is $60.00)

(A Top Pick Jan 18/22, Down 27.2%)Stockchase Research Editor: Michael O’Reilly Our PAST TOP PICK with SKYW has triggered its stop at $30. To remain disciplined, we recommend covering the position at this time. This will result in a net investment loss of 31%, when combined with our previous buy recommendation.