I would think about right,.
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would that be a bargain? 2 for 1 at 1.0? glad i took my loss and moved back to OCA... must be getting old.. KMD looking good soon to. Again... SKC... ect and many other to trade... have to set up yet another portfolio...lucky we have it automated... i got busy after the GFC with software...thought something might come along... only it turned up sooner and bigger than i imagined...many thanks to the many very experienced investors and there knowledge
I agree this makes sense but the Govt might want to put the heat on minority shareholders and do a 4:1 at 50 cents and underwrite it themselves.
$2.2 Billion capital raise in tandem with the $900m loan would stand them a reasonable chance of getting through the next 2 years in my opinion.
Some people have obviously missed this article wherein Foran admitted they are losing $5m a day, (that's $1.8 billion a year). 800 day plan at $5m a day is $4 Billion :eek2: Clearly as they very slowly start to rebuild parts of their business the daily loss will drop down very slowly however experts on CNBC last night were questioning when or even IF airlines will be profitable again ? Suggestions that large swathes of their business market might have permanently disappeared with meetings by digital means such as Zoom becoming widely accepted business practice. If they can't make money from the front end of the aircraft, it doesn't auger well for a return to profitability any time in the foreseeable future.
https://www.msn.com/en-nz/news/other...ec/ar-BB154Jgp
Might be years (if ever) before any of those 15 777's come back from the Alice Springs plane graveyard.
From the AFR article, there's no pressing need to raise capital.
Quote:
Air NZ had short term liquidity worth more than $640 million as at May 26 and told shareholders it had no financial covenants on new or existing debt facilities and no significant debt maturities until 2022.
It also has an $NZ900 million short-term loan from the New Zealand government ready to go.
A lot of that short term liquidity will be made up of pre-paid flights that they are going to have to give credits for. However at $5m per day that $640 is now down to $575m and falling. Scrapping the 777's might cost a bit more as will the remainder of the redundancies. Interesting times.
The $5m a day figure Beagle and you mention Blackcap was the average over level 4 and level 3. The figure will be no where near that now we are in level 1 without social distancing on flights.
Yes some passengers will use credits but there will also be some "catch-up" bookings taking place that will rebuild cash levels to some extent. The cash burn will still be down but the curve will look like a U or a backwards J at least.
Qantas/JetStar are going to be kicking them very hard while they are down.Very hard.It is that sort of business."Bastards R Us".
Karma with the "legal theft" [but morally repugnant] of customer's money, means their brand will cost billions, and years to re build.May pay to rebrand as NAC.
Bull traps everywhere....
All newbies are wondering n crying why the shares that just bought....down so much......
Here we go...another wave of market vilotile
Oh great Percy....I admire you....you did not let this greedy market suck I in.
I will add something for newbies.
Should you have money/capital in the market you should not have,sell tomorrow morning.
Right off any losses,and move on.Any profits put down to good luck.
"A fool and his money are soon parted."
ps.Capital raises.
To expand the business.Take up your rights.
For the company to just stay in business.Leave to others.
Carefully gauge the narrative of the shorts who wish for lower prices against the longs who wish for higher prices. Understandable that everyone talks their own book but it is only the disengaged who offer unbiased commentary, imo.
I’m disengaged, no position short or long. I think AIR is a very poor investment at present but a very attractive trading instrument for those who have the skills and the fortitude to long it up and short it down. Not my cup of tea anymore, recipe for a sleep disorder.
Simply Brilliant Mr B!!!
"I agree this makes sense but the Govt might want to put the heat on minority shareholders and do a 4:1 at 50 cents and underwrite it themselves."
but who in the cabinet would even think of this? Treasury? certainly not Typhoon Twyford. Lovely Jacinda? The minister of sport? oops i ment finance....
The perennial Mr Percy... sounds almost Jane Austenish... "Any profits put down to good luck." ive had some good luck lately but i should have sold more often and held more often...