Tech World: China Southern Continues to Emerge in the Asian Airspace

China Southern Airlines Company Limited () is principally engaged in the provision of passenger, cargo and mail airline services in the People’s Republic of China, Hong Kong and Macau, as well as other parts of the world. The company operates certain airline-related businesses, including aircraft maintenance and air catering operations. China Southern operates a fleet of 309 aircraft, consisting primarily of Boeing 737 series, Airbus 320 series, 300, 330 and McDonnell Douglas 82, 90.

The main business activities of China Southern Airlines in Ho Chi Minh City is to transport passengers and goods between China and Vietnam, to bring up the safety, convenience, promptitude and professional services to their customers.

China Southern Airlines will be launching an all-new First Class and Business Class travel experience with all-new Airbus A330, which will be available in November, 2007. The airline will be offering world class amenities and enhanced cabin layout to ensure that passengers experience a journey of the utmost in luxury while feeling like they're  "Home in the Air."

To maximize passenger comfort, China Southern has adopted a three-class layout on board the new A330-300 with four seats in First Class and 24 seats in Business Class. First Class is stocked with special amenities such as tailor-made "Apollo" seats designed by Contour in Britain. Similar to a cocoon, each First Class seat is 194cm long - 70cm wide and can be programmed to recline to 180 degrees at the touch of a button on the armrest.

Each seat comes with a footstool as high as the seat itself, and with the attached LCD, passengers can enjoy video on-demand via the in-flight entertainment system. To make the cabin even more spacious and lighter, designers removed the overhead compartment. Business Class seating are nearly as roomy as those in First Class, with an inside length reaching 190cm and a width of 60cm, exceeding most passenger requirements.

The stock is strong fundamentally with terrific sales growth and attractive cash flow. In addition, the last earnings release showed a strong earning per share of .80 representing 250 percent increase over the same period in the previous year. The stock looks good technically projecting gains into the $121 per share area.  Currently there are no options available for China Southern.

Figure 1: Daily Elliott Wave-4 Buy Pattern for China Southern
(Source: Profit Source)

Happy Trading.

Jeff Neal 
Senior Writer, Options Strategist & Profit Strategies Radio Show Market Correspondent
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