mich nach meinen Urlaub von den kap verden Boa Vista zurück. Männers ruhig bleiben,wer Zeit hat wird hier belohnt.
Investors not keen on holidays
Tue, 2012-01-24 17:05
January is a crucial month for the Travel and Tourism sector, with up to 15% of summer holidays predicted to be booked this month. But the sector has been rocked again by Thomas Cook, which has hit another stumbling block with the lack of confidence in Carnival Cruises since the recent disaster in Italy. We drill further into the sector to highlight others subject to high or rising short interest.
Stocks covered include: Thomas Cook Group Plc (LON:TCG), TUI AG (ETR:TUI1), US Airways Group, Inc. (NYSE:LCC), JetBlue Airways Corporation (NASDAQ:JBLU), Travelzoo Inc. (NASDAQ:TZOO) and Universal Travel Group (NYSE:UTA). Average short interest in the ICB Travel and Tourism sector, which covers more than 150 stocks globally, stands at 2.72% of the total market cap. This average jumps up to 3.6% when looking at the stocks with a market cap’ of greater than USD 1 billion. Most shorted With the exception of Expedia (11% of total share out on loan), which just falls outside of the top 10 most shorted stocks, the big names that dominate the travel and tour operators are amongst the most shorted companies in the sector. This includes TUI AG, Thomas Cook, Flight Centre and Universal Travel Group.
Thomas Cook Group Plc has reported further disappointing performance figures. The press has reported that bookings for January are down by a third as consumers have expressed anxiety over the company’s high profile troubles at the end of last year. This in turn has further amplified its cash flow problems. Short sellers look to be pre-empting further bad news as demand to borrow reached a new annual high of 16.5% of total shares earlier this month. This has now reduced to 15% but it will be interesting to see how the market reacts over the coming weeks. Holdings of institutional investors who lend has halved over the year to 16.4% of the market cap’.
TUI AG, which competes directly with Thomas Cook, has seen very similar changes in short interest. While the company ranks in fifth place amongst the most shorted stocks, institutional investors have taken a contrasting view and have more than doubled their holdings at 19% of the market cap’.
Online operator Travelzoo, could be used to gauge investor sentiment towards e-commerce in this industry. Short interest rose to an unprecedented high of 21% of total shares in December as the share price continued to track at annual lows. However, this has been followed by sharp short covering, reducing short interest to 16% in the last month alone. This could indicate that some investors believe that the share price has reached the bottom of the trough. That said, ownership of institutional funds who lend stands at an annual low of less than a tenth of the market cap’. Airlines Airlines account for four of the 10 most shorted stocks with US Airways Group topping the list with 21% of its shares out on loan. However, all of these have been subject to short covering over the past month with the exception of JetBlue Airways Corp (19%). Despite being the most shorted stocks, most of these have healthy levels of institutional ownership of funds who lend, with JetBlue Airways (34%) and Republic Airways Holdings (30%) having seen the largest proportion of the market cap’ held by these institutions. Small cap stocks Travelzoo Inc (8%) and Universal Travel Group (7%) have seen the lowest holdings. Stocks of interest Carnival Corp: The Costa Concordia tragedy last week may have dented the share price but it was already trading at a 30% discount on the year. Despite this, short interest is low at 1.8% of total shares but has doubled over the year. Marriott International Inc: Of the large cap’ hotels, Marriot International Inc is the most shorted. Short interest has increased by 50% to 4.4% of total shares, although given the upcoming dividend a proportion of this influx in demand to borrow could be due to dividend arbitrage. However, following a year of declining holdings, institutional ownership of funds who lend is tracking at annual lows of 16.9% of the market cap’.
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Related news: Americas Inc. (NYSE:LCC) JetBlue Airways Corporation (NASDAQ:JBLU) Thomas Cook Group Plc (LON:TCG) Travel and Leisure Travelzoo Inc. (NASDAQ:TZOO) Tui AG (ETR:TUI1) Universal Travel Group (NYSE:UTA) US Airways Group USA EU Europe .
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