Scraping the bottom of the barrel
Quote:
Originally Posted by
Biscuit
I guess the things to watch out for are signs that the competition is hotting up, increased fuel prices, general economic down turn or any kind of spectacular failure ...
Increased competition and a higher fuel prices are locked into analyst evaluations which is why the consensus is around the $3 mark for AIR. Also there is a little "expect the unexpected" involved as well.
The current price of oil is widely regarded as unsustainable, but of course like share prices themselves whether it will be $50, $100 or $150 a barrel in the near, medium and long term is a little uncertain.
BTW: Have you noticed that AIR seem to have reduced their fuel hedging over the last year?
Best Wishes
Paper Tiger