In August 2009, a portfolio manager for Resolute Funds Inc. is considering adding to his fund's holdings, WestJet Airlines, a fast-growing airline based in Calgary, Alberta. WestJet has grown rapidly from a startup to become the second largest airline in Canada. Despite its recent successes, due to the economic crisis, its share price has halved from its high in December 2007. The portfolio manager is trying to determine whether WestJet's shares are attractive. To support his analysis, the portfolio manager has asked his team to assemble comparative financial data on WestJet and its key competitors. The portfolio manager wants to know if he should buy, hold or sell WestJet's shares.

Questions:

1. What is your assessment of WestJet's performance and financial health?
2. How does WestJet fare against its closest competitors?
3. How would you explain WestJet's value metrics in view of its past performance and its comparative performance?
4. Should Lau buy, hold or sell WestJet's shares?

Answer rating: 100% (QA)

WestJet Airlines Investment Analysis August 2009 1 WestJets Performance and Financial Health Rapid Growth WestJet has grown rapidly from a startup to become the second largest airline in Canada This i... View the full answer