http://www.singaporeair.com/en_UK/nz...om-wellington/
777 it is
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Any ideas as to where this rally will top out?
Maybe a few people are in the know of a soon to be announced guidance upgrade.
From 4 Traders, current year PE 7.22, FY18 PE 7.72. http://www.4-traders.com/AIR-NEW-ZEA...07/financials/ Long run 10 year average PE for AIR is 11.
Management seemed confident on last months months conference call that yields looking forward looked set to improve.
Oil is down a bit since that conference call in late February.
QAN currently trading at A$4.00, current year PE 8.12, FY18 PE 7.65
http://www.4-traders.com/QANTAS-AIRW...912/consensus/
What if the Govt are selling their shareholding?. Any negatives there?
LOL You've been reading too many of Marilyn Munroe's posts Joshuatree.
As you know already the Government's majority controlling interest protects Kiwi's national interests and provides a reliable source of new capital if for some unknown reason the airline needed it in the future. Something many people aren't aware of is that Government approval is required before any shareholder can own more than 10% of the airline.
This is purely speculative but in my opinion if for some reason the Govt wanted to remove those safeguards, (not that I think this is a good idea and is counter intuitive to protecting our national interest) you can well imagine a carrier like Singapore Airlines being able to borrow cheaply on the international debt market at 2-3% acquiring the airline at a significant premium to the current market price and based on a PE of say 10 giving an earnings yield of 10% this would be strongly EPS accretive for them from the get-go.
Disclaimer: I am not aware of any speculation in business or Govt circles or in any media channell which might suggest this is even a vague possibility.
Only our dear friend Marilyn Munroe's posts suggest this is the best strategy for the Govt.