Cathay Pacific (293)

[wildww]

Cathay Pacific continued lower to close at $15.80 last Friday. We think this stock is in an ideal buying range and believe that any further downside to be minimal. We don't see this stock moving higher soon and will require some consolidation in this range. We will be buying dips to to $15.50 and try to ac***ulate this stock. The high price of oil has been hitting this stock but business travel has been strong and sees no signs of weakening. The stock is trading at PE of $13.63 which is high compared with peers in Europe and the US but we like this stock.

[wildww]

There was a very strong sell off last week culminating in a big emotional sell everything anxiety. Cathay Pacific broke through its low from Feb 22 triggering stop orders which forced people to sell. But who was buying? Only a very few were. Those who have a long term view and who are not emotional. We are starting to ac***ulate Cathay Pacific at this range.

[liowkc]

With the soaring oil and jet fuel prices, I am bearish on airlines which are also facing increasingly facing difficulty in passing the additonal cost to fliers in the form of fuel surcharge.