Pullback not a buying opportunity at Flight Centre
This week the market was shocked by a profit downgrade from Flight Centre. The company has been quick to blame political uncertainty, both domestically and in the UK. Would you change your holiday plans because of an election or a ‘Brexit’ vote? It seems that consumers do. But is this a passing issue or is there something more systemic at play? The stock dropped 9% yesterday and could well present a good buying opportunity if the issue is purely one of short term confidence… but that is a big question. Some substantial institutional holders have been selling - Bennelong Fund Managers and Airlie Funds Management. With three downgrades under its belt and a round of upset analysts now adjusting their numbers, things could get worse before they get better. If you are looking for travel-related exposure, Webjet offers better short-term momentum although the stock may pull back a little in sympathy. Read my full thoughts: (VIEW LINK)
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