Qantas has pulled back alot from $6.00 to $4.50, and people might be thinking this poses a great entry. I am however discouraged by several factors. The stock was pushed up by a failed leveraged takeover, the support has really not sufficiently tested the $4.20 support level, and whilst I suspect it will consolidate at that level, I dont see it holding it. I think the airline will struggle to fill seats in a contracting economy, and I think discount airlines will make a bigger impact, and regional airports will grab more market share. I think alot of cities are pricing themselves out of the tourist market and business travel will likewise contract. For this reason I can see them falling back to $3.00. More informationn at Google Finance, and see my discussion forum.
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Andrew Sheldon www.sheldonthinks.com
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