WestJet Airlines Ltd.: Investment Strategy
(4 pages of text)
In August 2009, a portfolio manager for Resolute Funds Inc. is considering adding WestJet Airlines to his fund’s holdings. WestJet, a fast-growing airline based in Calgary, Alberta, has grown rapidly from a start-up to the second-largest airline in Canada. Despite its recent successes, its share price has halved from its high in December 2007, due to the economic crisis. The portfolio manager is trying to determine whether WestJet’s shares are attractive. To support his analysis, he 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.
This case has the following objectives:
- Develop students’ understanding of financial statement data and the link between financial results and company strategy.
- Build students’ skills in using financial ratios on a trend or comparative basis.
- Prompt students to identify the key drivers of profits, cash flow, and return on equity.
- Help students understand the main value metrics used by shareholders.
Transportation and Warehousing
Canada, Large, 2009
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