Vol. 3, No. 19 — Time to rejoyce
The unpopular boss of Australia’s biggest airline has quit; The Saudis have cut oil production to boost prices and fatten their wallets; Value in financial transaction processing
In this issue
Quote from Howard Marks
Cartoon: The Spirit of Alan
Time to rejoyce
A crude move
Cost of capital
Regions and sectors
Stock screen
Debt cycle monitor
Investment idea: Euronet Worldwide Inc.
Read time: 25 minutes
Quotation
“Prices are too high is far from synonymous with the next move will be downward. Things can be overpriced and stay that way for a long time... or become far more so.”
— Howard Marks
Cartoon: The Spirit of Alan
Time to rejoyce
The unpopular boss of Australia’s biggest airline has quit. Does his departure create an opportunity for value investors?
•••
Qantas, Australia's largest airline, was created by a small group of pilots in outback Queensland. Now, it's the biggest and most hated airline down under. The Flying Kangaroo, as locals call it, is mired in scandal. The share price has fallen, and the boss has quit. That raises the question: With the company facing so much turbulence, is now a good time to buy the stock? While the shares look cheap, the answer will depend on how much special treatment you think the airline will continue to get.