NOT ALL SUN­SHINE

Finweek English Edition - - INVESTMENT -

I dissed Co­mair di­rec­tors for buy­ing back shares at 300c and now they have is­sued a trad­ing up­date that says HEPS will more than dou­ble, an awe­some num­ber. But my con­cern re­mains, the air­line in­dus­try has never been a de­cent medium/long-term in­vest­ment and while the sun is cer­tainly shin­ing on Co­mair right now, it is bound to set one day. This is not an in­dus­try to in­vest in, there’s a great deal of reg­u­la­tion and a sur­pris­ing amount of com­pe­ti­tion (why do rich peo­ple want to start loss-mak­ing air­lines?). This, cou­pled with costs be­yond own con­trol (such as the oil price), make for an in­vest­ment op­tion best avoided.

Co­mair Lim­ited

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