The Biggest Commercial Airliner Shoot-Down Incidents in Modern Times: Infographic

On January 8, 2020 Iranian military shot down a Ukraine International Airlines Flight 752 (PS752) flying from Tehran to Kiev, Ukraine. 176 people lost their lives in this incident which included 167 passengers and 9 crew members. The military claimed it panicked and shot down the aircraft in the fog of war created by a possible invasion by the US.

Shootdown of commercial airlines are relatively rare. However they do happen in times of conflicts and other reasons. The following infographic shows the biggest commercial airline shoot-down incidents in recent memory:

Click to enlarge

Source: RFE/RL Infographic

The 30 Most Traded Stocks On The German Stock Exchange

The German Equity Market has recovered strongly since the lows of March tracking major global indices. Germany is the economic powerhouse of Europe and when looking for opportunities in the continent it is wise to focus on the German market. The country is home to some of the world leaders in certain sectors such as engineering, automative and chemical sectors.

The benchmark DAX index is just down 3% year-to-date.

With that brief intro, let’s take a look at the most liquid and highly traded German companies.

The most traded stocks on the Frankfurt Stock Exchange are shown in the table below:

Click to enlarge

S.No.Company NameWKN (Code)
1Allianz SE840400
2Wirecard AG747206
3Bayer AGBAY001
4SAP SE716460
5BASF SEBASF11
6Daimler AG710000
7Volkswagen AG Vz766403
8Linde plcA2DSYC
9Deutsche Lufthansa AG823212
10Siemens AG723610
11adidas AGA1EWWW
12Deutsche Bank AG514000
13Deutsche Telekom AG555750
14MTU Aero Engines AGA0D9PT
15BMW AG St519000
16Deutsche Post AG555200
17Münchener Rück AG843002
18Infineon Technologies AG623100
19E.ON SEENAG99
20Deutsche Börse AG581005
21RWE AG St703712
22Vonovia SEA1ML7J
23Continental AG543900
24Merck KGaA659990
25Fresenius Medical Care AG & Co. KGaA St578580
26Fresenius SE & Co. KGaA578560
27HeidelbergCement AG604700
28Henkel AG & Co. KGaA Vz604843
29Beiersdorf Aktiengesellschaft520000
30Covestro AG606214

Source: Deutsche Boerse

A few observations:

  • Insurance giant Allianz (AZSEY) is the most traded stock on the Frankfurt Exchange
  • Wirecard AG is a startup company that was involved in a major fraud a few months ago. So its best avoided.
  • Among the chemical giants, BASF AG ( BASFY) and Linde AG are in the above list.
  • Shoe and sports apparel maker adidas (ADDYY) is a good alternative to  its American peer Nike(NKE).
  • Two of the largest utilities RWE AG(RWEOY) and EON AG(EONGY) are also worth a look although at better price levels than now.

The ADR tickers of the above companies on the US market can be found here.

Download:

Disclosure: Long EONGY, RWEOY and CTTAY

 

 

Ten Facts About Wuhan, China

In a recent New York Times article Thomas Friedman on the impact of globalization on the Coronavirus pandemic asked this interesting question:

Who knew that there were regular direct flights from Wuhan, China, to America?

Of course, not many Americans knew there were direct flights from “over there” to here. In fact, it can be safely assumed less than 1% of the population even knew that a place called Wuhan actually existed.

This led to me to think maybe its a good time to learn more about other major cities starting with Wuhan. With that said below are xx facts about Wuhan:

  1. Between 2000 and 2018, the population of Wuhan grew from 8 million to 11 million. Population wise, Wuhan is bigger than New York.
  2. The Wuhan subway line was opened in 2004 with a single line and 10 stations. Today the Wuhan Metro has 9 lines and 228 stations.
  3. 228 million tourists visited the city in 2018.
  4. In 2009, Wuhan was linked to Guangzhou in Southern China with a high-speed rail service.
  5. Today 25 major cities are connected to Wuhan with the hi-speed train service.
  6. In 2009, the third passenger railway station was opened in the city.
  7. The travel time is just 5 hours between Wuhan and Beijing on the hi-speed train.
  8. Wuhan Tianhe International Airport had direct flights to 52 global destinations and 84 domestic cities in 2018. International cities reachable by flights include New York, San Francisco, Dubai, Milan, Paris, etc.
  9. The distance from Wuhan to Beijing by road is 750 miles and it now takes 12 hours on the G45 expressway.
  10. The world’s largest power station, The Three Gorges Dam is located near Wuhan.

Sources: Global Viral Outbreaks Like Coronavirus, Once Rare, Will Become More Common and High-Speed Trains, International Flights: How the Coronavirus Spread, WSJ and Wikipedia

Easyjet and Carnival To Drop From The FTSE 100 Index

UK-based discount airline Easyjet PLC (LON: EZJ.L and US  OTC: ESYJY) and cruise company Carnival PLC (LON: CCL.L and US NYSE: CUK)  will drop from the FTSE 100 Index on June 19, according to a press release by FTSE Russell. This is a followup post to an earlier today where I discussed about Lufthansa getting kicked out of DAX Index.

After dropping from FTSE 100, Carnival will be added to the FTSE 350 Index.

The 5-year return of Easyjet and Carnival stocks trading on the US markets are shown in the chart below:

Click to enlarge

Source: Yahoo Finance

Despite a recent jump, both stocks are down significantly.

Airline and cruise sectors are high risk plays now as nobody knows when these industries will fully recover.

Disclosure: No Positions

 

Average Stock Holding Periods for NYSE 1929 to 2018 : Chart

The average holding period for stocks continues to decline globally. In the US it is getting especially worse with the introduction of commission-free trades by brokerages last year and millennials’ propensity to trade often with apps like Robinhood and others. According to a report by Ted Maloney and Robert Almeida, Jr at MFS, the average holding period for a stock listed on the NYSE is approximately nine months. The following chart shows the continuous decline in stock holding periods since the 1960s:

Click to enlarge

Source: Lengthening the Investment Time Horizon, MFS

For more details on this topic you checkout my earlier article: Duration of Stock Holding Periods Continue to Fall Globally