BWIA's share price holding spite of airline trouble

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BWIA's share price holding spite of airline trouble
Tobago News

Despite reports that national airline BWIA finds itself in a financially
strapped year-end position after three quarters of profitability, its share
price on the local stock market seems to be in little danger of further
erosion.  BWIA's stock was offered to the market a little over a year ago
at $7.65, and has since fallen to $2.70. According to Subhas Ramkhelawan of
Bourse Securities: "Bwee has been in a price range of $2.50-$ 2.75 over the
past four five months, so the recent statement has not really done anything
to the price." The share closed at $2.80 a few days ago. Ramkhelawan said
the volume of trading was not very high, but the announcement was likely to
have a delayed effect, if any, on the volume.
"Investors are looking at their options," he said. "The industry has been
hit by 9-11. Bwee has been able to negotiate some arrangement with Liat,
but the core issue is passenger load."

Kathleen Dhannyram of Reliance Stockbrokers concurs that there is likely to
be little movement in the share's volume or price.  Most people holding the
share bought it at the initial issue, she said, so most have resigned
themselves to holding onto it at this price. "The person going into the
market understands there is risk. There are some long-term investors who
are interested, and the recent downsizing announcements might help." BWIA
posted after tax profits of US$7.1 million for the nine months ended
September, 2001.  This compared to a loss of US$2.6 million for the same
period in 2000.



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