Coronavirus impact, page-2

It will take them a bit of time to get an idea of the impact as unlike FLT (primarily head office owned and run), webjet owned and operated online and CTD primarily head office run and owned HLO is a franchise model so it may take a few weeks for franchisees to report. One thing to keep in mind SARS took place in 2004 when China as a holiday destination for westerners was still in its infancy so the impact this time will be greater. There will be an impact no doubt (maybe the lower end of the old trading update from Sept (83m) may be better to use as a top end guideline rather than the uppper end of the Dec update (90m) which would still be growth. The sell off will continue on Monday now that worldwide travel will significantly slow due to countries stopping flights to China. I am sure it will put others off flying anywhere for the short term and things will be postponed and restricted. I would not be surprised if this finishes up under $4.00 (=5% dividend @ PE~12) before this is all over. In which case I plan on doubling my holdings. Nothing like an industry correction to give you a chance to top up. For portfolio balance I may add some FLT, CTD and WEB just to create a little mini travel sub portfolio. People will fly again and travel will continue to grow.