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LUV
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158 days

From Southwest to BP, Elliott and other activists are shaking up companies again - MarketWatch

1. Southwest Airlines will charge for checked bags for the first time. 2. Elliott Management pressured Southwest for significant changes to improve value. 3. Activist investors are influencing corporate governance, with notable management changes. 4. Elliott's campaigns typically enhance stock performance despite management resistance. 5. Elliott's involvement resulted in a significant restructuring at Southwest Airlines.

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FAQ

Why Bullish?

The initial charge for checked bags may improve revenue and operational efficiency, positively impacting LUV's stock. Previous actions by Elliott have historically led to short-term stock appreciation, though longer-term trends remain to be evaluated.

How important is it?

The announcement of checked bag fees indicates a strategic shift for Southwest. Additionally, Elliott Management's involvement suggests a prioritization of shareholder value, which can lead to stock price enhancements.

Why Short Term?

Increased revenue from bag fees may bolster short-term financial results. The influence of activist investors like Elliott typically showcases immediate effects on targeted companies.

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