I have shares in CEB (Cebu Pacific) and now I am thinking whether to SELL my shares or just HOLD.
Reason for Selling:
1. With SMC buying PAL/Airphil Express, in a few years Airphil may overtake Cebu Pacific specially now that Iñigo Zobel has been elected president of Airphil Express. Read If you have the money, would you buy PAL?
2. Although Cebu Pacific is still a solid company, there are many stories about bad customer service, delayed/cancelled flights and negative experiences that cannot be ignored, most specially what happened to the case of Raymart Santiago/Claudine Barretto (unrelated to the airport brawl with Mon Tulfo) where the passengers where not informed before leaving that their luggage was shipped to another flight, for me it was non-acceptable, if they have informed the passengers before the flight, they might have understood then.
Read also Buy CEB, which I posted last year.
CEB Target Price is more than P100 by all analysts (But this was in 2011), it is currently trading at around P70/share, even if we lower the target price to P85-90, Cebu Pacific may still be a good investment in the next 6 to 12 months.
About Iñigo Zobel – http://en.wikipilipinas.org/index.php?title=Inigo_Zobel
Do you think I should sell my CEB shares?