Regal Funds Management co founder, Phil King is recommending that investors sell shares in travel company Flight Centre, arguing that the stock has rebounded too strongly since its lows of last year with the company still facing headwinds with the shift to online travel bookings.
King, who is the only fund manager at the Sohn Hearts & Minds conference tipping a short, said Flight Centre’s shares have doubled from a low of $8.75 last year with the onset of Covid to their current levels of around $17.33.
“We think it is too much. We think it is a short,” he said.
King said Flight Centre, whose shares peaked at $69 in 2018, was a popular stock with retail investors who saw it as the “go to stock” for the reopening of the economy.
But he said that while people were excited to see the international borders open up, “we think it is going to be a bumpy road out of lockdown.”
Mr King compared Flight Centre to US company Zoom which had been a market favourite last year as the world discovered its product, but its shares had fallen this year as investors became more sceptical about the company’s long-term financials.
This article was originally posted by The Australian here.
Licensed by Copyright Agency. You must not copy this work without permission.
Eleanor Swanson of Firetrail Investments sat down with Equity Mates Media ahead of this year's conference. Eleanor shares the story of her first investment, breaks down the small cap landscape and shares some of the best companies that she's come across during her time in the markets.
.jpg)
Yen Liow of Aravt Global sat down with Equity Mates Media ahead of this year's conference. Yen shares the story of his first investment, Aravt's investment philosophy, his thoughts on the future of the payments industry and why he's excited to be a part of the Hearts & Minds family.
Hearts and Minds Investments Limited (ASX:HM1)'s Chief Investment Officer Rory Lucas and founding Hearts & Minds supporter Phil King of Regal Funds Management recently spoke with the hosts of You're In Good Company, an Equity Mates Media podcast. They discuss all things Hearts & Minds including the upcoming Conference, HM1 and what's involved as a Core and Conference Fund Manager. Phil also shares why he's proud to be part of the Hearts & Minds family, Regal's investment approach and explains what Alternative and Short investing is.
Warren Buffett’s right-hand man Charlie Munger is the headline act at Sohn Hearts and Minds this year and the 97-year-old investment legend is expected to offer forthright views on global financial markets which are now at a critical juncture.
.jpg)
.png)
