Originally Posted by
modandm
2 more dreamliners arriving soon... got me dreaming about what I wish management would do to boost our returns.
1. Sell a 49% stake in the airpoints program - could get at least $400m for it
2. Sell the dreamliners on lease-backs, boost the gearing from current 51% towards 75%, could generate c.$1bn
3. Reduce the cash on balance sheet to $500m from $1.1bn
Return $2bn to shareholder's through a $1.80 per share special dividend.
And doing this would have minimal effect on the stock price because we all value on forward PE or forward EBITDAR or dividend yield...
This stock is bloody undervalued I tell you, if Airpoints is worth $800m which I think it is, and Virgin stake what $400m, and cash on balance sheet of $1b... you are paying $1bn for a company earning well over $250m (ex AP)... So the core business is trading on 4x earnings...
Does anyone want to help me take it private? Jokes aside, if this was run by US management and not government controlled, the CFO would be fired, someone aggressive hired, and the stock double through basic financial engineering that is rife in the US. American Airlines is buying back stock, despite gearing of over 150%...