A company in my portfolio just reported a record quarter, beat its own profit guide and showed that customers are still booking far into the future. The share price jumped on the news. The awkward part: the same quarter showed how quickly higher fuel can eat the benefit of better pricing.
The position is up +13.8% since inclusion the portfolio. I am pleased with the operating progress, but a good quarter doesn’t automatically make the next dollar invested a good bet. Since my June update, demand improved while the cash cost of running and refreshing the assets became harder to ignore. That pushes my target lower, even as the rating stays HOLD.