CPA

Copa Holdings S.A.

Industrial/Transportation


Presented:01/15/2015
Price:$105.64
Cap:$4.69B
Current Price:$97.55
Cap:$4.06B

Presented

Date01/15/2015
Price$105.64
Market Cap$4.69B
Ent Value$4.94B
P/E Ratio11.18x
Book Value$47.68
Div YieldN/A
Shares O/S44.37M
Ave Daily Vol830,000
Short Int6.29%

Current

Price$97.55
Market Cap$4.06B
Copa Holdings, S.A. provides airline passenger and cargo services in Latin America. It provides services within Colombia; and international flights from various cities in Colombia to Panama, Venezuela, Ecuador, México, Cuba, Guatemala, and Costa Rica. The company offers approximately 327 daily scheduled flights among 66 destinations in 29 countries in North, Central, and South America, as well as the Caribbean from its Panama City hub. As of April 30, 2014, it operated a fleet of 92 aircraft comprising 66 Boeing 737NG aircraft and 26 EMBRAER-190 aircraft. The company has strategic alliance with United Continental Holdings, Inc. Copa Holdings, S.A. was founded in 1947 and is based in Panama City, Panama.

Publicly traded companies mentioned herein: Copa Holdings SA (CPA)

Highlights

The presenter is short shares of Latin American Copa Holdings (CPA) - which operates both Copa Airlines and Copa Colombia - and believes the risk/ reward is favorable at current levels (~$105). The airline has no net debt at stated numbers, generates ~$2.7 billion in total revenue (2/3 Latin America, and the majority of the remaining 1/3 in North America), and should benefit from falling oil prices; however, CPA is having a “MercadoLibre problem” in Venezuela. As much as 15% of 2013 and early 2014 revenue was derived from the country (before management took steps to reduce exposure to the country), and there is a ton of cash “trapped” in the country.

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Idea Discussion

Commentor 1 - 2 weeks ago

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