Share to Buy – Qantas (QAN)
Posted on August 19, 2015
Qantas reports tomorrow and is on track to chalk up their largest annual profit since 2008.
We are expecting a strong result which could push the share price significantly higher.
Earlier in the week, Sydney Airport agreed to buy terminal 3 at Sydney Airport off QAN, for $535 million.
In return for Sydney Airport buying back the terminal lease, which had been due to expire in 2019, Qantas has received assurances it will have priority access to 12 of 17 gates and 75 per cent of the check-in area and the majority of the baggage claim area in the terminal between 2019 and 2025.
That alleviates QANs concerns that Sydney Airport could turn the terminal, used only by Qantas and QantasLink, into a large multi-user facility post-2019.
Technically, the QAN chart is showing us everything we would hope to see and if we get a strong set of numbers tomorrow, the uptrend should continue and even accelerate.