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Shorting Saves the Day Again, Airline Stocks?

Category: Trading Diary Published: 02-08-2008 By: moneycat
In view of the weakening economy in US - I have been busy shorting the markets - and this has proved to be a profitable strategy (but emotionally, it is quite sad).

Having said that, I have been investigating into airline stocks lately - with oil price falling, the latest reports coming from airlines like BA, Lufthansa is no surprise as that was the latest quarterly report - but is this the worst it can get?

Globally, as most of Middle East airlines are owned by Government - it's hard to buy into those stocks - but I do like Singapore Airline, Cathay Pacific - which are good airlines with profitable routes.

I have been contemplating about Qantas - while on the press, it is not very well received due to the expected retrenchments and moving offshore, but they will actually deliver positive results to the bottom-line.

Virgin is also becoming interesting, with the new route to US due to start soon, I think that will be taken up quite well.

On a smaller cap front, REX is really becoming a very interesting story due to still increasing traffic between the regional cities, but REX is heavily exposed to the oil price - and therefore, the risk could be higher compared to QAN and Virgin.

Money Cat
moneycat-consulting.com.au




 
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