David Nadel (Trades, Portfolio) trimmed his stake in TravelSkyTechnology Ltd. (HKSE:00696) during the second quarter.
Nadel shaved off 220,000 shares from his portfolio at an average price of 14.65 Hong Kong dollars ($1.89). The trade had a -0.47% impact on Nadel’s portfolio; he now owns 610,000 shares of the company.
TravelSky Technology has a market cap of 49.63 Hong Kong dollars, a price-earnings (P/E) ratio of 21.82, an enterprise value of 45.3 billion Hong Kong dollars and a price-book (P/B) ratio of 3.59.
TravelSky Technology is a Chinese state-owned enterprise. The company is headquartered in Beijing. It provides information technology within the air travel and tourism industries as well as a clearing, accounting and settlement service. Its clients include airlines, airports, air travel suppliers and travel agencies as well as individual and corporate travel consumers and cargo services.
According to GuruFocus TravelSky Technology has a 10/10 financial rating with no debt. It has an Altman Z-Score of 9.92 indicating that it is in the safe zone and is not in danger of filing for bankruptcy in the near future. The company also has a Beneish M-Score of -2.61 which indicates that its financial statements are true and the company is not manipulating its financial results.
The company also has an 8/10 profitability and growth rating with an operating margin of 31.99%, and a net margin of 36.23% which ranks it above 97% of the 1,829 companies in the global information technology services industry. According to GuruFocus, the company has a 4.5-star predictability rating based on backtesting results. Stocks with a 4.5-star predictability rating produce, on average, a 10.6% yearly return over a 10-year sample size.
TravelSky Technology has excellent financial strength; it's expanding its operations, and it's a 4.5-star company. It’s likely that Nadel reduced his position because TravelSky Technology stock price has gained an estimated 41% in value since the third quarter of 2015 when Nadel purchased his initial stake.
Nadel likely wanted to decrease his future variance of the company's market-price declining, which may have impacted his decision to trim his stake by 220,000 shares during the second quarter. Since Nadel cut ties with 220,000 shares of TravelSky Technology during the second quarter the company’s market price has gained an estimated 15% in value.
Disclosure: Author does not own any shares of this company.
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