Category Archives for "Transport"

Fake news volcano scare – an opportunity!

Don’t let the truth get in the way of a good story. According to the Sunday Times yesterday (23rd September 2018), a volcano in Iceland (indeed an “Icelandic giant” called Katla no less) is “about to erupt”.  “The ash plume that brought European air travel to a standstill in 2010 could be dwarfed by an […]

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Copa – a falling facon along with the ARG

Chasing rainbows for capital intensive businesses can be tricky, particularly if you’ve sunk a lot of capital only to find no crock of gold. This must be how Copa Holding must feel now, having thrown capital into building capacity in Argentina ahead of some particularly aggressive traffic growth forecasts. While traffic volumes has so far […]

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“Normal profits are becoming normal for airlines” – be afraid!

Recency bias is alive and well. “At long last, normal profits are becoming normal for airlines”, so says the IATA in its June 2018 industry update titled “Solid Profits Despite Rising Costs”.  After a couple of years of improving margins and ROIC, is this a paradigm shift for investors to jump aboard? Unfortunately, it feels […]

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Wazzup – 20th Sept 2017

Slow start to the new fiscal year for FEDEX (fdx) and DIAGEO (dge_l).       Fedex Q1 disappoints on cyber-attacks and hurricane headwinds, while Diageo blames a late Chinese New year and US spirits investment for a weak start to its FY18.  Management innocent on all counts, of course   ;-)   Fedex – Q1 FY18:  […]

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Wazzup – 12th June 2017

Theresa may have to eat crow when she dines with newly elected Macron tomorrow, but the more immediate driver to markets this week will be whether the Fed raises rates on Wednesday despite weak inflation, GDP and net job growth. For the UK, weak sterling and consumer expenditure growth figures from VISA suggest continued pressure […]

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