Warren Buffet's "too many planes" hits a nerve with easyJet investors
Fiona Cincotta May 5, 2020 2:19 PM
When Warren Buffet talks it’s good to listen.
When Warren Buffet talks its good to listen.
Berkshire Hathaway has sold out of its entire US airline holding. Despite paying between $7 - $8 billion to buy around 10% of 4 US airlines across the years the trades were closed recouping just $6.5 billion. Warren Buffet admitted that he was wrong about that trade after the coronvirus outbreak created new dynamics in the industry.
Stelios (34% shareholder) has called for a shareholders meeting, which has been agreed to and is due to go ahead on 22nd May. Stelios could attempt to oust the board of 11 directors including the CEO and the chairman at the meeting. In the meantime, easyJet shares are likely to remain under pressure with any gains capped.
Despite advancing over 2% today, the stock is 60% down from its pre-covid-19 price. The stock has under-performed the FTSE from its March 19th low.
easyJet dropped through its 50 sma on 4 hr chart, as it trades with a negative bias.
Immediate support can be seen at 509 (yesterday’s low ) 464p (low 3rd April) and 410p low 19th March.
Immediate resistance can be seen at 597p (50 sma). A move over strong resistance at 700p could indicate the start of a more bullish run.
Futures, Options on Futures, Foreign Exchange and other leveraged products involves significant risk of loss and is not suitable for all investors. Losses can exceed your deposits. Increasing leverage increases risk. Spot Gold and Silver contracts are not subject to regulation under the U.S. Commodity Exchange Act. Contracts for Difference (CFDs) are not available for US residents. Before deciding to trade forex and commodity futures, you should carefully consider your financial objectives, level of experience and risk appetite. Any opinions, news, research, analyses, prices or other information contained herein is intended as general information about the subject matter covered and is provided with the understanding that we do not provide any investment, legal, or tax advice. You should consult with appropriate counsel or other advisors on all investment, legal, or tax matters. References to Forex.com or GAIN Capital refer to GAIN Capital Holdings Inc. and its subsidiaries. Please read Characteristics and Risks of Standardized Options.