Chinese Airlines: I'm not a fan of Ken Fisher. I can't understand his valuation methodology or his buy/sell activity. I suspect he makes most of his money from his large money management business, roping in customers from his many media appearances and books. I do read him though for the many eclectic stocks he writes about, especially non-USA stocks.
In a Forbes last week, there's an article touting "Ken Fisher's six stock picks".
forbes.com
China Eastern Airlines and China Southern Airlines are two. Looking at these two, that led me to look at Cathay Pacific. I like the thesis that air travel among Chinese will increase, and that could mean more growth and profits for Chinese airlines. As I've mentioned before I'm interested in tapping into the growth of the Chinese middle/upper class. It may be that Cathay is better positioned and more focused for the international Chinese business traveler, vs. the air traveler within China
cathaypacific.com
"Cathay Pacific Airways is proud to have won two coveted titles at the 2011 Business Traveller China Awards held in Beijing on 2 November 2011. The airline received the “Best Asian Airline Serving China” title for the second consecutive year and also picked up the “Best Airline First Class” honour."
I can't discern if CPCAY.pk (Cathay) is a better value than the other publicly-held Chinese airlines. It looks reasonably low-priced to me with a p/e of 5, and I'm more comfortable with Cathay's longer good history.
I'm in for a few shares now.
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CPCAY my only airline stock now: I'm out of both my fav's,ALGT & ALK, which continue to do well (stock price rise continues). UAL, I decided to exit for small loss. HA, I've given up on and sold at a larger loss. HA (Hawaiian Air) may still turn out to be okay as a bet on the increased trade between Korea and USA (with the approval of the new US trade agreement). Perhaps I've been too impatient with this one. |
