Community

Share knowledge. Find answers. Ask questions.

Online Share Trading

Engage and learn about markets and trading online

Is this 1 Flying South ????

Reply
Occasional Contributor
I'm down 38% on this 1. What is going on ? Should I quit now and take the pain or is there light at the end of the runway ?
0 Kudos
10 REPLIES 10
Highlighted
Super Contributor
They mere fact you are feeling pain, you should sell,take some time off from the market, re-group, identify where you went wrong and come back into the market. I know that feeling. Alway document your emotion so that when it re-occur you can identify with it. Factors are against this industry, high petrol cost, higher inflation mean less disposal income. My advice is to get rid of the dog.
0 Kudos
Highlighted
Super Contributor
This share has retraced almost 90% since its July 09 low and still heading south. No point therefore looking at technicals. Advise looking at the fundamentals. Try and ascertain financial strength then look at SENS and websites such as moneyweb to find recent interviews. This will help you determine the reason for the fall and future prospects. Also try and speak to an asset manager who specializes in the travel sector. Therafter make your call. I have had dogs before that have become racing horses.
0 Kudos
Highlighted
Not applicable
Nass, I have a long position in 1Time as well. To date haven't seen or heard anything to convince me to bail out of it. Yes it has been heading South but not on large volumes. There just isn't an appetite for it currently given current market conditions and other prospects available.
0 Kudos
Highlighted
Super Contributor
- Nass - Maybe you should have got out ,say 30% ago.
0 Kudos
Highlighted
Super Contributor
Will not take off on time... You not trading this share because you would have jumped off long time ago so were you investing....Warren Buffet avoided the Airlines because it had no long term competitive advantage....The plane needed the same amount of fuel irrespective of the number of passengers....so if you had only 2 passengers, you still need a full tank of fuel...
0 Kudos
Highlighted
Contributor
I'd just cut your losses now and get out, or alternatively i think you'll be here for a really really long time. It's only my opinion but i dont think 2010 was steller for 1TM despite any spin to the contrary. As already pointed out, the cost of fuel has a big impact and this year hasnt been too lekker. Airline also failed to capitalise on the World Cup in any meaningful way and used what business it did get during this time to "offset poorer months in August and September". Seems they will do battle with the likes of Kalula for a long time, and while they might turn it around, in terms of investment you could probably do better elsewhere...omo
0 Kudos
Highlighted
Not applicable
hey nass,dont bail on itime ,buy more-if you have 100 buy another 300 and you will be in good shape
0 Kudos
Highlighted
Super Contributor
Now that is not good advice. Putting more capital into a losing trade.
0 Kudos
Highlighted
Super Contributor
Looks like one of the directors is battling more than the airline, to cash in R15000 worth of shares does make things look pretty bleak. maybe no salary this month ?
0 Kudos
Highlighted
Super Contributor
this stock gave a clear warning signal in January and August 2010 of an impending down-turn. You only have to read William O'Neill book to know that a stock that does a gap and then hit an all time high is not good news. I would have bailed out on the first signal in January unfortunately this stock is now down 71%. Oops.
0 Kudos