In the post, dated on 22 March, some challenges ahead for Cathay Pacific Airways were highlighted, as noted below.
1. Where the share price heading to in near future ?
2. Will the organizational restructure revive the company performance ?
Since then, there are some developments made within the organization.
1. Replacement of CEO.
2. Staff layoff.
Last Friday, the company had a meeting with analysts from financial institutions and research firms, disclosing the huge bill of HK$300 million in redundancy payments to those employees been laid off. Its part of 3-year transformation of the business.
Exactly 2 months after the post raised the challenges ahead, the share price broke out all S-Trader Trend Tracker resistance levels, on 22 May. At the same time, the weekly chart also showed a breakout on week ending 26 May.
The price reacted in response to the news that the company confirms it will shed 600 staff from its head office.
More news, Hong Kong’s Cathay Pacific confirms 600 staff to go amid major restructure.
Looking forward, the company upcoming few quarterly earning reports will be closely watch - whether the recent actions will contribute positively.
Daily chart
Weekly chart.
Source :
1) Metastock
2) www.scmp.com
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