They are a great cyclical investment. Get in early and then get out early.
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yes indeed Bobdn, I definitely questioned this change of heart and never got duped into placing AIR in my l/t portfolio ( I may have traded it a couple of times)
Nothing really ever changes in the world of finance market because it is based on human psychology.
And , as I have said before I saw the P+L's for all the AIR business units when I worked there for 10 years. Such thin lines between profit and loss.....
The risk of a Boeing collapse is small for AirNZ. The US Government is heavily reliant upon Boeing.
Like many companies in this sector Boeing has been the victim of financial engineering by it's executive team which left the company without adequate reserves (FT article from August, 2019.) It seems to have become a regular feature of aviation for governments to offer support at the end of business cycles so aviation businesses purposefully operate to exploit the support. I'm not sure exactly why we do this and yet display such little concern for supporting other cyclical industries that are instead forced to hold appropriate reserves.
we get it....you dont like Jacinda or labor.................but it is not to late...It may prove to be....but as we speak,all cases
have been ''imports'' and if they are contained we could still avoid scenarios like Europe and the States....so lets not get carried away
If we avoid scenarios like Europe and the States, would only be our good luck!
Nothing to do with good proactive and progressive management of the unfolding virus situation by this incompetent government over the last 2 months!
A lot written about Air NZ needing a second bailout etc etc.
I was there when Air NZ needed the bailout way back in 2001 - the fault then was 100% Air NZ as management & board stuffed up paying mega dollars using debt for Ansett Australia.
This time round, anyone will accept that Air NZ has been a well managed successful airline and in common with most of the other airlines around the world, has unfortunately been caught up in circumstances NOT of its making.
https://www.stuff.co.nz/national/hea...d-analysts-say
As for billions of dollars required for bail-out - good example of why Air NZ should be on trading halt to stop the wild and imo, inaccurate alarmist speculations.
I reckon the government should be generous and give shareholders 20 cents and take over AIR lock stop and barrel.
Even 20 cents a share is generous ...better than nothing
Stop airlines like AIR running the way they do knowing that every decade or so they’ll get a bailout.
air will be virtually idle for the rest of the year easy , so i agree govt should just take them over at 1c