May 8, 2012 (Chinavestor) Shares of China Eastern Airlines (NYSE:CEA) fell 3.5% in the first hour of trading on Tuesday, breaking a long winning streak. As a matter of fact the stock advanced over 20% in two weeks, the best such rally for the stock in all of 2012 so far! Investors may wonder if the party is over for CEA...
Going forward here are some food for thought. For one, a pull back is always natural after such unusual hike. Two, air China (HKG:0753) and China Southern Airlines (HKG:1055) advanced strongly in Hong Kong on Tuesday, suggesting there is nothing wrong with airliners. Given that CEA's home market is not New York but China, investors should get clues from there. Something is telling me there is more buying power into this stock and today's pull back is just a quick correction or profit taking. Time will tell...
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