Today I put just less than 10% of my portfolio in Flyby, the UK domestic airline. I can't claim any credit for the idea. Once again, I am indebted to Red Corner: http://quinzedix.blogspot.co.uk/2015/11/normal-0-false-false-false-en-us-x-none.html
My thoughts: It's rare idea that looks very cheap, and there is a clear reason why it is cheap.
If everything goes right, the upside looks very substantial. However, this relies on capital allocation being very good, which seems unlikely. Downside seems protected by cheapness and there is no premium to book.
My investment in Distribution Now will benefit highly from an oil price rebound. Flybe benefits from oil prices staying low. Therefore, they are a hedge for each other.
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