Does MM plan to buy Qantas shares (QAN)?
Will MM be buying QANTAS shares?
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Answer
Hi David,
We know QAN is currently in the cross hairs with many Australians but at MM our goal is to add value (alpha) to portfolios as opposed to making any type of political statement e.g. we currently hold uranium, coal and oil exposure!
However, we aren’t fans of QAN around $5.30, even after its recent 24% pullback. The last 5-10 years has seen QAN focus on profitability at the cost of the customer experience. Short term decisions and a lack of investment in fleet will provide a headwind from here. The next few years will be spent focussing more on the customer, which is good for us, but not as good for profitability. Share prices follow earnings over time, so we are neutral observers until further notice, seeing better value/opportunities elsewhere – for now at least.
