2024-02-03 02:42:54 ET
Summary
- Lufthansa's stock has declined by 2.4% while the market is up almost 29%, indicating a 30% difference.
- I do not have much interest in pure-play airline companies due to their unattractive business models and lack of catalysts for upward movement.
- Lufthansa's future outlook is uncertain, and the company's valuation does not offer much upside potential.
Dear readers/followers,
Since my last article, Lufthansa has done exactly what I expected it to - decline. The company has seen a negative 2.4% RoR while the market is up almost 29%, which makes it a 30% difference.
In this article, I mean to show you why despite the decline in the share price, I continue to have very little interest in this company - or most pure-play airlines. I do own shares in companies that own airplanes/airlines, such as Exchange Income Corp ( EIFZF ) or TUI ( TUIFF ), but I do not own any pure-play airline companies. There is a reason for this. I share Warren Buffett's conviction that airlines do not make for very appealing investments, unless you know exactly what you're getting into and what you expect from the company....
Read the full article on Seeking Alpha
For further details see:
Lufthansa: Why Pure-Play Airlines Remain Uninteresting To Me