Chinese airlines stock pitch. Is it a good industry to pitch?

iliavko's picture
Rank: Monkey | banana points 52

Hi everyone!

I want to get an internship in the financial industry. My target roles are in Asset Management, namely alternative investments. I am interested in structured finance, HF, PE, RE and portfolio management.

However since these roles are quite exotic and competitive I would also like to be ready to apply for more traditional roles such as equity research. Plus I think ER is fun and good knowledge of companies' ins and outs is always useful, no matter what role you will get in the future.

So, I'd like to do a stock pitch. I used to be a flight attendant and I really like aviation, so I was thinking of pitching an aviation stock. There is so much to talk about, airlines are affected by demographics, politics, macro, oil prices and a bunch of other factors, so to me it looks like a very cool industry.

I wanted to pitch a Chinese airline since there is a boom in Chinese tourist and business travel, oil will remain cheap for a few years, Chinese manufacturers are starting to build their own planes (so the Chinese airlines will get then cheap under very nice terms)

However there seems to be a few problems with this pitch idea too.

1st: very few publicly traded airlines. Even in the US, not to mention China.
I read that it's not good to pitch blue chips large-caps. But in this case I won't have much choice, I would have to go with a major airline since it's the only one I can get data on. Is it an issue?.. I won't have many comparables for example..

2nd: Hard to get reliable data on Chinese companies. They are known for sketchy accounting practices.

3rd: Would a potential employer be even interested in an airline pitch?.. It's not a hot industry such as biotech or tech. Or do you think that if the pitch is smart they would still get a good impression of me no matter what industry I picked?

I am not into biotech, or other hot industries, so pitching these would be boring to me and doing the research would be even more boring, I wouldn't be "feeling it" if you know what I mean.

What are your thoughts on these 3 issues I just mentioned?

Your input would be very interesting!


Comments (1)

Jun 21, 2017

Everyone has a plan until he got punched in the mouth.