(MONEY Magazine) – FRONTIER AIRLINES Flying high on discount leisure fares

Business: Using Denver's airport as a base, Frontier offers 45 low-fare flights daily to 19 major cities nationwide.

Opportunity: Small Frontier spoke up about predatory pricing practices by United, Denver's dominant carrier, causing Goliath to back off. Its main low-fare rival, Western Pacific, went under last year, giving Frontier the low-cost lock on many western U.S. routes. The carrier now wants to lure more business travelers and add cities. Its stock trades at a 25% discount to the P/E ratios of other airlines.

Risk: Rising oil prices would trim earnings. Frontier's pilots recently unionized, which may add to labor costs. --Vanessa Richardson

CHICO'S FAS High-comfort clothing for boomer women

Business: Chico's easy-fitting, private-label styles have struck a chord with professional women ages 35 to 60. It sells its mix-and-match color-coordinated outfits through 141 stores in 34 states, mainly on the East Coast.

Opportunity: Same-store sales for the quarter ended May 1 grew by an eye-popping 23%, and Chico's plans to increase its store base by 15% annually, with 25 new, larger shops opening this year. A direct-mail marketing program is persuading 12,000 new customers to enter its doors every month.

Risk: Chico's new stores in upscale shopping areas and malls will face well-established competitors like Ann Taylor and The Limited. --V.R.

GENESYS TELECOM LABS The software that smooths customer service

Business: San Francisco-based Genesys makes software to link computer, telecom and database systems for corporate call centers that handle customer service. Among its 650 clients are Schwab, Visa and Sprint.

Opportunity: Genesys is the largest player in this emerging telecom market, expected to grow from $230 million in annual sales to $950 million in 2003. It already offers the broadest product line and plans to add software for Internet use and e-mail and voice routing.

Risk: Enterprise software stocks have been in the doldrums; two top execs left in 1998. Cisco and Lucent loom as possible, although distant, competitors. --V.R.