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FLT - Flight Centre Travel Group

Discussion in 'Stocks 0-H' started by It's Snake Pliskin, Apr 21, 2005.

  1. It's Snake Pliskin

    It's Snake Pliskin

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    What's happening with this stock?
     
  2. GreatPig

    GreatPig Pigs In Space

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    Re: Flight centre

    From what I can see, it's just continuing the geneal down trend it's been on since 2002.

    Cheers,
    GP
     

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  3. dutchie

    dutchie

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    Re: Flight centre

    All travel agencies must be suffering from the fact that so much travel information is available on the net and more importantly it is very easy and convenient to book flights/accomodation/excursions/tours etc yourself.
     
  4. WaySolid

    WaySolid Learner

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    Re: Flight centre

    A case of poor fundamentals.

    They are being left behind in the technology stakes. Visit their website and try and research an international airfare. I'm not sure what role TA might play in this stock but have a personal view that I wouldn't touch it with a stick on the long side.
     
  5. It's Snake Pliskin

    It's Snake Pliskin

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    Re: Flight centre

    Thanks.
    Yes the fundamentals are a problem at the moment.
     
  6. RichKid

    RichKid PlanYourTrade > TradeYourPlan

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    Re: Flight centre

    Was it Qantas that dropped a favourable arrangement with Flight Centre because of margin pressures last year? I heard that did a lot of damage to them.
     
  7. krisbarry

    krisbarry

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    Re: Flight centre

    Flight Centre has taken many hits in recent years due to many factors:

    a) September 11th
    b) Rising Fuel Costs - Airline fuel surcharges
    c) Decreased Agency Commissions
    d) Online travel agency such as webjet are becoming more popular
    e) E-Tickets
    f) SARS Virus
    g) recent bad press (ACCC) due to slogan "Best Prices Guaranteed"
    h) Flight Centre Stores look out of date, very 90's. In urgent need of a make-over

    etc. etc.

    Travel/Aviation industry world wide is not looking to good.
     
  8. It's Snake Pliskin

    It's Snake Pliskin

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    Those who hold Flight Centre

    This is purely for entertainment.

    Those of you who hold Flight Centre, would you be kind enough to disclose your purchase prices and intended plans for this stock. Where do you see it going? Why did you buy it? etc.

    There is a lot of mixed information on this stock, different perceptions and analysts who have opposing views. Even the analysts of one newsletter have different views which lead to their recommendation.

    I'll start by stating I paid $15.46, basically because it was undervalued. I plan to hold for the long term if the fundamentals don't screw up further. I will constantly watch the fundamentals but won't overreact to panick selling. I see this as a quality company with a good track record, but with some problems at the moment. I believe it will only take one good profit forecast to lift this stock again. I see the competition being weaker if there is a downturn in the industry, due to the large presence of flight Centre agencies. I do concede the website issue is a problem that needs to be overcome. :)
     
  9. TjamesX

    TjamesX

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    Re: Those who hold Flight Centre

    I don't hold FLT and never have, and I have never actually used their service. But some fundamental questions;

    Do they make their money only on commission from selling seats or is it more involved than that. I know that the big push for people to book online direct with the airline would be having an effect and will continue to do so, especially with the move to budget flying.

    I assume that they're only real leverage is through the end destination accomodation/packages and the ability to provide these at a discount to the customer because of the volume of packages they sell?

    TJ
     
  10. mime

    mime

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    Re: Those who hold Flight Centre

    I don't think the long team outlook is good mainly because the internet is digging into their profits. Plus I think Qantas cut their comission from 5% to 1%.
     
  11. TjamesX

    TjamesX

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    Re: Flight Centre FLT

    In the age of people increasingly getting information from the web and it actually being more useful for the consumer;

    Re;
    realestate.com
    seek.com
    etc etc etc

    The amount of little Flight Centre agencies popping up everywhere really does surprise me. Why couldn't they create a kickass website with graphics/pictures of avery destination/hotel you could ever want to go to and let people create/mix/match their own holiday packages is beyond me! Maybe people do prefer to talk one on one with someone who hands them a glossy brochure - and thats why there's a flight centre agency on every street....

     
  12. RichKid

    RichKid PlanYourTrade > TradeYourPlan

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    Re: Flight Centre FLT

    Hey folks,
    I've merged the two threads on flight centre into this thread. Please try to maintain just one thread per stock unless it is absolutely necessary as it helps maintain a well structured site and a flowing conversation, it may also generate more debate.
    Thanks!

    PS This is a chart of FLT, $14 looks like a key level. Just look at that big candle from last week!! (see GP's chart in post #2 for the long term price patterns).
     

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  13. serp

    serp

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    Re: Flight Centre FLT

    I've been checking the figures and its weird cause profits are down and dividends are up over the last coupld of years??? How does that work? Why pay out higher dividends? Is this because they aren't reinvesting profits into the business? Even though profits for last financial year are tiny compared to say 4 or 5 years beforehand.
     
  14. tech/a

    tech/a No Ordinary Duck

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    Re: Flight Centre FLT

    Check out WEBJET WEB they are taking the market by storm.

    They even post their monthly profit figures to the ASX you'll find them under announcements.
    I first noticed them at 20.5c

    There is one place lost profits are going.
     
  15. el_ninj0

    el_ninj0

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    Re: Flight Centre FLT

    Wow, I agree tech/a. How do you find out about such great little companies like this?
     
  16. serp

    serp

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    Re: Flight Centre FLT

    Can anyone answer my question about the rise in dividends but the fall in profit? Whats the motivation behind that?
     
  17. serp

    serp

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    Re: Flight Centre FLT

    Mate, I thought everyone knows about webjet. :)

    Didn't realise the SP was that low though.
     
  18. tech/a

    tech/a No Ordinary Duck

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    Re: Flight Centre FLT

    El ninjO
    One of the benifit of technical searches.
    its just turned up on a breakouts scan.

    Serp.
    I'm not a fundamentalist I've posted your question on Reefcap under Fundamentals---I'm sure there will be an answer.
     
  19. tech/a

    tech/a No Ordinary Duck

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  20. TjamesX

    TjamesX

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    Re: Flight Centre FLT

    Webjet came to my attention last friday.... bit of a saga at the moment and probably deserves its own thread.
     
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