Ann: FXL - Trading Update and COVID-19 Response, page-44

short term, as in the next 12 months, you are probably 100% right. It might even be longer than that. No recession last forever though and consumer sentiment goes up again. The USA looks like it might go into a really deep recession and this time round given the state of our relations with China, we probably can’t look at China to keep us out of one ourselves.

however they don’t last forever - even the early 90s bounced back and that was the the worst one I have been through. You might have 6 or 7 % (or even higher very short term) unemployment but that still leaves 93% employed. Obviously spending drops as people become concerned and batten down the hatches. So I don’t see Flexi being a high growth stock short term but I also don’t see it collapsing.

I agree it’s past performance going back a couple of years was woeful. I do think that the change in CEO was exactly what a rather fuddy duddy company needed. She has a clear strategic view of where she wants the company to go and she is implementing it well. Really unlucky for her that a 1 in a 100 year event has brought that unstuck.

I think we need to see the full year figures to understand what is happening with the company and while a changed macro environment does make it harder for everyone, I still see it as a company with potential. I would rather own shares in it at the moment than flight centre or webjet, although I think they will bounce back long term as well.

it’s a very difficult time but not the end of civilisation