Charlie Aitken: Today I am recommending taking trading profits in QAN

Bell Potter


Charlie Aitken: Today I am recommending taking trading profits in QAN . From a low point of 95c back in December 2013 QAN shares have gained +200%. Airlines are trading stocks: always have been, always will be. They are not long-term investment grade in my opinion due to the fact they control very few of the variables in their business. Pretty much everything went right for us in this QAN trading idea. The Oil price collapsed, the AUD collapsed, the domestic capacity war ended and QAN's earnings recovered as confirmed in yesterday's interim earnings result. The QAN share price has tracked the FY15 consensus EPS revisions. That drove a +200% share price appreciation and that's enough for me. Despite QAN management doing an excellent job, I suspect the next +20% gain in the QAN share price will be much harder and slower than the last +200%, and that is why I am recommending taking trading profits today.

Bell Potter Securities is a leading Australian stockbroking, investment and financial advisory firm that provides a comprehensive offering of financial services to a diversified client base that includes individuals, institutions and corporations.

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