Westjet Airlines (WJA.TO)

A really good news story. It arced up on great earnings news, but you can see that it is ahead of the longer term trend line. It may pull back. He would watch a slower moving indicator like RSI. It would be a good entry or exit point indicator. Likes levels of 70 and 30 for trading. You also have to look for the hook down to move out.

Had a huge run. They are doing all kinds of fantastic things to generate revenue. This is a short-term trade as opposed to a buy and hold.

(A Top Pick Jan 23/13. Up 11.54%.)

Does not recommend airline industry for long term holds. Doing all the right things. A number of catalysts on the horizon. Introducing regional carrier and premium economy class which could do well for the company. Strong balance sheet and buying back shares. Will continue to be a very good company, but management has to execute flawlessly because of expectations on the company. He would think it would be prudent to take some money off the table.

A lot of shareholders and employees are true believers in the company. Profitability and expansion is there. It is at the higher end of the valuation range and is still a risky business to a degree.

When you look at the guts of this company and what they are doing, it is quite impressive. Have a much stronger cost structure and margins are much higher. Still trading at reasonable valuations. Yield of 1.45%.

Incredible chart. Company is doing everything right. Would be really hesitant to buy at this price.

From a sector standpoint, the airline group is performing really well because the consumer is traveling. With improving housing market, the heat is coming off the consumer a little bit. This is a very strong performer and is in the strong group. Good fundamentals.

There are a lot of bullish people on this one and it is positive but he is not a big fan of airlines. Has had a good run. If he owned, he would be taking money off the table.

Bought it as a value play. Have taken the airline to higher levels and possibly the best run airline in North America. Lots of cash on the balance sheet. The one risk is that they are starting a new regional airline. Not one analyst on Bay street doesn’t like it.

Thinks there is still room to the upside. This is the #2 carrier in Canada. They are facing the issue that now they are the big guys, how do they grow. Trying to develop more vacation and some destination businesses and developing regional airlines. Good management and good labour relations.

Regional fleet. Consistently profitable airline, which is a rare thing.

Airlines have had a bad rap but looking at the charts, some of them are not doing too badly. Caller was interested in Shorting but he would not do that. He just wouldn’t Short anything in a bull market.