The Omnicron variant has provided an investment opportunity in the travel sector.
Prior to the emergence of Omnicron, Travel destinations were beginning to plan pathways for reopening.
This gave confidence to the market that the future values of travel related stocks would be higher and as a result travel stocks recovered from pandemic market shock lows.
Since the start of the Omnicron market scare travel stocks have decreased in value significantly.
Currently, countries such as Vietnam, the Philippines and Thailand are beginning the pathways back to pre covid travel levels by slowly easing entry restrictions.
Preliminary data shows Omnicron may be less severe and it will become the dominant variant. This gives us confidence that covid is mutating in a positive direction and the world will eventually open up as a result of the new variants low mortality rate.
We believe the travel sector will recover at some point leading us to conclude that current market valuations are selling at a discount.
Our plan is to front run the end of harsh pandemic travel restrictions and take a position in the travel sector.
The time horizon for this trade is between 8 weeks and 6 months.
We are expecting to close our position at a 10 to 30 percent gain.
Play Number One
Carnival Cruises, stock code CUK currently valued at 18 USD.
At the high of pandemic recovery Optimism, CUK was valued at 27 dollars. That is a 66 percent increase in your investment back to the last recovery top.
Note: ignore carnival stock CCL because it is selling at a premium which could narrow if the U S economy weakens further.
Play Number Two
Flight Centre FLT. You can get exposure to this company on the Australian Stock Exchange. Flight Centre recovered to a price of 25 Australian Dollars and now sits at 16 dollars. When optimism returns and creates momentum, FLT may experience a 66% gain back to the highest pandemic recovery point.
We will post updates in the comment section as new information comes to light.
Prior to the emergence of Omnicron, Travel destinations were beginning to plan pathways for reopening.
This gave confidence to the market that the future values of travel related stocks would be higher and as a result travel stocks recovered from pandemic market shock lows.
Since the start of the Omnicron market scare travel stocks have decreased in value significantly.
Currently, countries such as Vietnam, the Philippines and Thailand are beginning the pathways back to pre covid travel levels by slowly easing entry restrictions.
Preliminary data shows Omnicron may be less severe and it will become the dominant variant. This gives us confidence that covid is mutating in a positive direction and the world will eventually open up as a result of the new variants low mortality rate.
We believe the travel sector will recover at some point leading us to conclude that current market valuations are selling at a discount.
Our plan is to front run the end of harsh pandemic travel restrictions and take a position in the travel sector.
The time horizon for this trade is between 8 weeks and 6 months.
We are expecting to close our position at a 10 to 30 percent gain.
Play Number One
Carnival Cruises, stock code CUK currently valued at 18 USD.
At the high of pandemic recovery Optimism, CUK was valued at 27 dollars. That is a 66 percent increase in your investment back to the last recovery top.
Note: ignore carnival stock CCL because it is selling at a premium which could narrow if the U S economy weakens further.
Play Number Two
Flight Centre FLT. You can get exposure to this company on the Australian Stock Exchange. Flight Centre recovered to a price of 25 Australian Dollars and now sits at 16 dollars. When optimism returns and creates momentum, FLT may experience a 66% gain back to the highest pandemic recovery point.
We will post updates in the comment section as new information comes to light.