It won't take years for the price to get back to $2.57 Baa Baa, would you be keen for a wager on that one? :cool:
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It won't take years for the price to get back to $2.57 Baa Baa, would you be keen for a wager on that one? :cool:
In addition, AIR still has a substantial Crown shareholding. The government are unlikely to do anything major at the moment to undermine taxpayer investment in the company. However, if the history of SPK/TEL is anything to go by, when that Crown holding is sold off to private NZ individuals and NZ institutions, the government will adopt a new-found zeal for competition, regulation and re-regulation and continually decimate shareholder value.
Yes good post mate and a timely reminder that the Govt is behind shareholders in this company in a meaningful way (53%).
AIR being priced like we're going into a world-wide recession. John Key doing a good job as the Minister of Tourism and tourism is up 7%, so strongly in fact that RBNZ mentioned it as one of the growth factors underwriting 2% GDP growth in the economy.
Curiously Australia is on the verge of recession and yet QAN, (whose price was neck and neck with AIR some months back), has now blown out to a circa $1.20 premium to AIR.
Some irrational selling is going on, probably Asian holders bailing out fearing further losses from the downward trajectory of the $Kiwi, (always seems weakest in the mid afternoon).
Looking at the relatively small volumes traded over the past few days and the complete lack of depth on both sides my feeling is that the movements are being driven by retail investors, not institutions. No one is compelled to buy and no one is compelled to sell. It's an unusual mix.
Ive been watching the pattern over the last while and its only small retail fish selling out from Asia or where ever.(Gee ddrone we had the same thoughts at the same time)
http://www.sharechat.co.nz/article/b...September+2015
Latest spending data provides assurance people are still going about their daily lives, spending, living, eating, enjoying themselves, even travelling :)
Only 2 weeks and 2 days ago the CEO and CFO on the call sounded super confident about prospects for a substantial rise in earnings in FY16 and since then we've had the Chairman buying in decent volume...and yet some here and some sellers would now say because of more recent events or whatever other reason these guys at AIR know nothing, and they as complete outsiders completely unaware of forward bookings and demand can predict a severe downturn coming...the market and some sellers are irrational or they're prophets and can predict the future better than the top brass at AIR...you be the judge who's right and who might be taking an unnecessarily pessimistic approach.
I suspect that sellers and most on here are completely unaware that AIR has the ability and mandate within its constitution to buy its own shares back...opps is that letting the cat out of the bag ? You think if the Chairman puts his own money on the line to buy shares obviously thinking they're very good buying at circa $2.50, how long before the board follows suit with some of its $1,321 million cash ?
To illustrate the point, current depth is:
BUYS down to 235 - 41k across 8 buyers
SELLS up to 244 - 40k across 8 sellers
Pretty clear spread in favour of sellers right now.