They got a nice bonus last year.
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They got a nice bonus last year.
Look who got a credit rating upgrade today...sweet...lower finance / lease costs on the international markets.
[QUOTE=Roger;579900OTOH back to brighter topics...anyone see what happened to the oil price overnight and AIR's planes burning the cheap, mostly unhedged stuff now :)[/QUOTE]
And the Iranian deal closer than ever promises even further drop.
Long term term historic charts have found no correlation between AIR shareprice and Oil price...I've repeated this several times on AIR thread...sigh.
Up comes the chart again...also added is the NZ$ V US$ which also shows no correlation to AIR but has some correlation with Oil.
Why no correlation with Oil? as on the surface it doesn't sound right ...but dig a little deepr and..some things spring to mind...Off the top of my head listed below are some adverse effects which can neutralise the positive Oil price drop effects
1....Lower oil prices can signal decreasing global economic growth or increased recession risk..Cyclical stocks very sensitive to economic growth changes
2....Lower oil prices gives extra advantage to new entrants without hedged contracts
3....Lower oil prices gives a large giant .eg Quantas increased advantage to invade and capture market share
4....Increased competition defenses to protect market share involves decreased margins to create a less attractive environment for future invaders.
No correlation with currency...Not much evidence that a falling NZ$ brings more tourists...if anything there's a hint of a rising NZ$ helping in raising the AIR price..
Visually from the chart Oil and NZ$ V US$ has a slight trend correlation notice when both fall it spells global recession time OIL falls due to lack of demand and NZ$ falls due to flight to safe havens..
Why all this seems condictory to Posters comments I don't know and I don't want to know, as with keeping it simple I see the chart signs and obey them..AIR is a Cyclical Stock..Air shareprice shows its cyclical havioural pattern on the chart... The chart is saying high risk so I don't buy
http://i458.photobucket.com/albums/q...IR06072015.png
Thanks for you post Hoop but over the last year we have seen ample evidence of lower oil prices = higher AIR SP. At least year's ASM the SP was $2.00. A cursory look at other airlines stock prices I follow show they've almost universally done well since the radical drop in oil price about 12 months ago so I don't agree with your point of view. AIR is ostensibly unhedged with its oil for FY16 but well hedged with the currency...so they're drinking the cheap stuff and like human's drinking $7 bottles of wine its happy times...just praying the hangover isn't bad lol
I guess that's essentially what you're saying, cheap oil causes other airlines to do silly things.
Big volumes through today...