RE:RE:RE:Opportunity!DanielDarden123 wrote: Defiance2050 wrote: DanielDarden123 wrote: Obviously the analysts understand that CJT is not hindered by rising fuel prices as they pass them on through a surcharge, but retail investors are likely oblivious so are selling on the rising fuel price. Once this perception evaporates, patient investors should be rewarded handsomely.
It was a tough y/y comparable with emergency Covid supply charters to Asia which have long since ended. I purchased in the 160s and did not inticipate such a negative response, whether it was earnings specific or related to that day on the market.
Good point about the surcharges.
Obviously DHL, with their investment, also sees an opportunity. There are not many public CO’s.with a virtual monopoly in their sector so hitching onto this wagon seems a no brainer at the right price.
I agree both with what you said about DHL and Amazon previously as an opportunity to indirectly invest in the capacity of a supplier. Similar to Amazon I dont think DHL has the intention to purchase Cargojet as they could just acquire the sufficient capacity of cargo planes to supply themselves just benefit from doing business or restrict the chance of someone else purchasing CJT.
The recent sell off on higher oil prices was over done in the extent that fuel is indexed and customers are long term. On a reversal of oil prices there are going to be quarters where indexed fuel is more expensive then CJTs cost but it evens out in the long run.
I would much rather have a company continue to invest in future growth than pay a high dividend or when the share price isnt vastly under valued to do large buy backs. Great to have it announced who is leasing planes and that management wasnt lying when they say they buy planes to support their customers needs versus guesstimating.
Canadian banks as an example focused on their dividend if instead doing smaller raises and buybacks at a lower price versus all time highs would have been more beneficial to shareholders.