Maybe the nicest thing I can say about Copa Holdings (NYSE:CPA) is that in the roughly nine months since I last wrote about the stock, its Latin American peers including Gol Airlines (NYSE:GOL), LATAM Airlines (NYSE:LFL), and Avianca (NYSE:AVH)
all managed to do worse in terms of stock price performance. Then
again, the fact that one stock was down about 33%, another down about
44%, and the last about 63% doesn't really lessen the sting of seeing
Copa decline about 30% in value.
Copa has been thumped as
investors have fled Latin American airlines on growing yield concerns in
Brazil, Colombia, and Chile as commodity-driven exports show no
particular signs of strength and averse currency moves weaken the local
economies. I still believe that Copa is a good property, but the quality
of a house is somewhat moot when investors won't go near the
neighborhood. Like many other Latin American stories, I see value in
Copa today but you have to have a high risk threshold to own it and
there is most definitely a risk that conditions will get worse before
they get any better.
Continue reading here:
Copa Holdings Battered And Bruised By Brazil's Malaise
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