CEA

Update on Wuhan 2019 Novel Coronavirus Outbreak: 31,000+ Infections, 630+ Deaths

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Image Source: 2019-nCoV, Centers for Disease Control and Prevention The number of infections and deaths related to the Wuhan 2019 Novel Coronavirus has surged since our last update, but we maintain our view that investors should keep a level head. We continue to wait to add protection to the newsletter portfolios as the market absorbs a massive liquidity injection from the PBOC. By Brian Nelson, CFA The week of trading ending February 7 was a very strange one. Last Sunday, one could have only expected that given the news related to the Wuhan 2019 Novel Coronavirus outbreak, the bad news related to airlines (JETS) and aerospace players–Boeing (BA), in particular–and the speculative frenzy associated with Tesla’s (TSLA) rise, that the … Read more

Structural Changes in the Airline and Aerospace Business

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Image Source: Valuentum A version of this article appeared on our website April 28, 2021. By Brian Nelson, CFA The coronavirus pandemic (“COVID-19”) has fundamentally changed how companies do business. Zoom Video (ZM) has made in-person meetings largely redundant while innovative digital-agreement firms such as DocuSign (DOCU) have only contributed to the “anywhere economy.” Though there may be pent-up demand for in-person meetings and handshake agreements as the number of vaccinations for COVID-19 increase across the globe, many businesses may grow to permanently embrace the “anywhere economy” for its efficiencies and cost savings. This will impact the long-term trajectory of business air travel demand, in our opinion, with implications on the normalized intrinsic values of airlines (JETS), jet makers, and … Read more