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Phil King, Regal Funds Management - Stock pick: Short Flight Centre

Cliona O'Dowd and Glenda Korporaal
The Australian
Dec 3, 2021

Regal Funds Management co founder, Phil King is recommending that investors sell shares in travel company Flight Centre, arguing that the stock has rebounded too strongly since its lows of last year with the company still facing headwinds with the shift to online travel bookings.

King, who is the only fund manager at the Sohn Hearts & Minds conference tipping a short, said Flight Centre’s shares have doubled from a low of $8.75 last year with the onset of Covid to their current levels of around $17.33.

“We think it is too much. We think it is a short,” he said.

King said Flight Centre, whose shares peaked at $69 in 2018, was a popular stock with retail investors who saw it as the “go to stock” for the reopening of the economy.

But he said that while people were excited to see the international borders open up, “we think it is going to be a bumpy road out of lockdown.”

Mr King compared Flight Centre to US company Zoom which had been a market favourite last year as the world discovered its product, but its shares had fallen this year as investors became more sceptical about the company’s long-term financials.

This article was originally posted by The Australian here.

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