Benefits - Australia - Look Who’ll Benefit From Expensive Fuel
Australia -Australasian Investment Review -Sept 28 2005: -- Higher prices at the pump have wider implications than simply buy oil producers and sell retailers and transporters. According to analysts at Credit Suisse, one of the clear beneficiaries on the Australian stock market is likely to be Cabcharge and that is, to say the least, a conclusion coming from the left field... Part of the broker’s rationale is very straightforward: taxi operators will use higher prices for petrol to increase their own service fares. Credit Suisse notes the taxi industry has already called for the bringing forward of the previously agreed fare review timetables which would increase fares by substantial amounts to compensate the industry for increased costs... On the broker’s estimates, a fare increase of 1% more than is currently forecast in its earnings model for Cabcharge would push up the company’s earnings per share by about 1%... Unnecessary to say the experts believe the impact of fuel increases are likely to be...
posted by Unknown @ 12:53 PM
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