Wednesday, June 24, 2015

Seeking Alpha: Copa Holdings Battered And Bruised By Brazil's Malaise

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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