Category Archives: $UAL

Travel stocks crushed as EBOLA spreads – is this a good time to buy?

What does the World Health Organisation actually do and why does a hospital in Dallas have no clue on how to deal with an EBOLA Case.The WHO and the CDC have shown huge incompetence in dealing with EBOLA – and how does Africa let the disease spread to 3 countries?

Now OBAMA appoints a ‘Czar’ (Ron Klain) to sort out the mess and Cameron wants Europe to spend a Billion Euros!! Hopefully these actions will restore the public’s confidence and people will travel and book holidays.

Unlike SARS EBOLA can only be caught by physical contact and the 21 day incubation period has passed since Thomas Duncan left Liberia on Sep 19th – but no new cases – reported at least.

This is a nervous time to invest in travel stocks but the sell off could be an opportunity to buy US AirLines or Thomas Cook – but the crisis may not yet be over so buy half your position now and the the other half when the crisis begin fade OR Sell if it becomes a bigger problem – the virus looks nasty!

US Airlines:
AAL FV = 52 vs 33.4
DAL FV = 40 vs 34
UAL FV = 60 vs 44

Thomas Cook (TCG)
FV = 180 vs 109

2CentView has core positions in $AAL and $TCG.