Originally Posted by
value_investor
A few reasons for the recent drop and the stagnation in the past few months. I'm actually surprised it hasn't gone down more.
- Very high PE relative to the earnings announcement
- The plans of the new govt ie. Light rail to the Airport which will affect parking revenues if implemented
- Very high construction spend, a lot can go wrong with these types of projects and budget blow outs can happen very easily (See FBU)
- Very complex projects in terms of infrastructure. Building runways, hotels etc aren't easy and rarely happen in the time frames you would like them too.
I thought this would be in the 5s by now. Given the very low passenger growth and the issues at the airport with the fuel shortage last month. Guidance from management indicates single digit growth in earnings but I guess we are in the middle of this crazy bull market, so everything is overvalued.