Flight Centre Levels Out

This story features FLIGHT CENTRE TRAVEL GROUP LIMITED. For more info SHARE ANALYSIS: FLT

By Michael Gable 

The overall market is taking a bit of a breather as expected. Although reporting season is pretty much over, we still have some important information coming through in the week ahead. The RBA meets today, and although markets expect rates to stay on hold, there seems to be a growing expectation of a slight shift towards an easing bias again. This is a big difference to earlier this year when interest rates were likely to have edged higher by now. In terms of the effects on our market, this would benefit stocks that pay high dividends. Other news to look out for this week includes domestic GDP on Wednesday, retail sales on Thursday, along with the ECB’s interest rate decision on Thursday night and US jobs data on Friday.

Coming back to this week’s report, we review Flight Centre Travel Group ((FLT)) in light of their annual results.

 

On 17 June when FLT was trading at $44.58, we commented that it should bounce in the short term, with levels in the low $50’s being an ultimate target. After bouncing as predicted, price action since then has turned a bit neutral for the short term. That probably reflects the fact that we need to wait another couple of months for a catalyst to get it rallying back up to over $50. Before that however, if the share price does head south, then we should see some support around $45. If that gets breached, then a brief move to $42 is a possibility. However, that would be very short lived and would represent strong support and another buying opportunity.

Content included in this article is not by association the view of FNArena (see our disclaimer).
 
Michael Gable is managing Director of  Fairmont Equities (www.fairmontequities.com)

Michael assists investors to achieve their goals by providing advice ranging from short term trading to longer term portfolio management, deals in all ASX listed securities and specialises in covered call writing to help long term investors protect their share portfolios and generate additional income.

Michael is RG146 Accredited and holds the following formal qualifications:

• Bachelor of Engineering, Hons. (University of Sydney) 
• Bachelor of Commerce (University of Sydney) 
• Diploma of Mortgage Lending (Finsia) 
• Diploma of Financial Services [Financial Planning] (Finsia) 
• Completion of ASX Accredited Derivatives Adviser Levels 1 & 2

Disclaimer

Michael Gable is an Authorised Representative (No. 376892) and Fairmont Equities Pty Ltd is a Corporate Authorised Representative (No. 444397) of Novus Capital Limited (AFS Licence No. 238168). The information contained in this report is general information only and is copy write to Fairmont Equities. Fairmont Equities reserves all intellectual property rights. This report should not be interpreted as one that provides personal financial or investment advice. Any examples presented are for illustration purposes only. Past performance is not a reliable indicator of future performance. No person, persons or organisation should invest monies or take action on the reliance of the material contained in this report, but instead should satisfy themselves independently (whether by expert advice or others) of the appropriateness of any such action. Fairmont Equities, it directors and/or officers accept no responsibility for the accuracy, completeness or timeliness of the information contained in the report.

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