Crucial Perspective Sees Turnaround for Cathay in 2018

The video discusses Cathay's stock performance, predicting a turnaround despite current losses. It highlights Cathay as a potential takeover target for Air China, which could elevate them to a leading position in the airline industry. The discussion also covers the challenges Cathay faces due to increased competition from Chinese carriers and the potential political implications of a merger with Air China. The video concludes that a merger could be beneficial for both Cathay and Air China, providing growth opportunities and access to premium travelers.

What is Corinne Peng's outlook on Cathay Pacific's stock despite its recent losses?

• She believes it will continue to decline.

• She has downgraded it to underperform.

• She has no opinion on the stock.

• She maintains it will outperform.

What strategic advantage does Corinne Peng see in a merger between Cathay Pacific and Air China?

• It will make Cathay the largest passenger airline in the world.

• It will elevate the merged carrier to a leading position in cargo and passenger services.

• It will reduce competition in the Asian market.

• It will allow Cathay to focus solely on cargo operations.

What potential challenge is associated with Air China's takeover of Cathay Pacific?

• It could invite political backlash.

• It might result in increased operational costs.

• It may lead to a decrease in Cathay's market share.

• It could lead to a loss of brand identity for Air China.

Why might investors be motivated to divest their stake in Cathay Pacific?

• Cathay's margins have become more volatile.

• Cathay is expanding too rapidly.

• Cathay has no plans for international expansion.

• Cathay is focusing solely on domestic flights.

What recent event in the shipping industry is used as a comparison for Cathay's future?

• A merger between two major shipping companies.

• The launch of a new shipping route.

• A decline in shipping industry profits.

• Costco Shipping's offer for Orient Overseas.