Low cost companies

CFA General
#1

Hi, I’m interested in starting a list of companies that are low cost operators in their respective industries. As I see it, low cost companies are in the best position to survive this environment and come out stronger. I’ll start it off. - GEICO - Canadian Natural Resources Ltd. - WestJet

#2

-EnCana

#3

MCK in drug distribution

#4

kcin, that is interesting that you put Encana in the group. I wonder if there are some metrics that we could use to compare Encana to the others in the industry? Perhaps as a first pass G&A per flowing boe, no. of employees, avg. total cost per BOE… something along those lines?

#5

WMT - notwithstanding the research on local community impact etc

#6
  • Ikea (is this still true?)
#7

What are you screening for in terms of low cost companies - anything particular off Bloomberg? Or is it just XYZ company probably has a lower cost base because of a feel …? Would be good to see the name with a quick and dirty justification.

#8

I’m just blurting it out off feel but I can vouch for WestJet and Canadian Natural both with feel and quantitative data.

#9

NYX – I hear they’re selling inventory at dirty cheap prices

#10

LNCR in the respiratory/oxygen equipment space (sells to hospitals). Surprised they havent been bought out yet, Medicare is reimbursing them less and less for their stuff, but its still a good company and the industry is growing as much as 15%…

#11

Cemex among cement stocks?

#12

Bump, new companies to add to the list?

#13

AirTran has the lowest costs among US airlines, not sure how they compare to WestJet.

#14

mickey deez

#15

mickey deez

#16

Rick’s Cabaret

#17

Just wrote out a longer post but deleted it by accident. Anyway, RYA is the lowest cost airline for the record. I’d say look for companies that have high market share in their segment. Many of these will be cost leaders. If they also have higher OPMs than their rivals, then that is indicative of a good competitive position.

#18

Easyjet

#19

It’s damn hard for airlines to make profit, unfortunately.

#20

It always seems like there is something the airlines are complaining about in regards to “headwinds” facing their industry. They sound like farmers talking about the weather.