From what I have heard, there have been some discussions with AIA regarding slots for a LAX-AKL service by AA, so things are progressing.
LAX however is not a major hub for AA, so UA and AIR have a massive advantage in terms of connectivity.
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According to Craigs the average shareholder return over the last 10 years for AIR has been a compounding annual return of 12.5%. Those who have taken the ride on AIR for the long haul have done very nicely indeed. I believe gross dividends including special(s) will be at that level on average over the next few years and capital gains will be on top of that. All aboard before we depart FL275.
In August 2012, AIR NZ's annual report predicted 2013 EPS would double. On that, the share price went from 90c to $1.09 over two days and to my entry point of 1.24 a few days later.
Buyers had to ignore the entrenched herd belief that airlines are a bad investment, and the pain of paying 20% more than the price two days prior.
Some Sharetraders did (see p48). Since then they've had 42 c divs (net of 28% tax).
Take that off the purchase price of say $1.09, add back say 10c interest [$1.09*3% net interest, compounded for three years], and they have more than tripled their investment.
So far.
Lessons for me were:
1) act quickly
2) the herd is sometimes wrong.
Done a quick check and here are my calculations for 10 year annualised returns with dividends to 12-Oct:
2005-2015: 13.0%
2004-2014: 5.4%
2003-2013: -1.6%
2002-2012: -3.5%
2001-2011: 0.5%
we will ignore the
2000-2010: -14.4%
1999-2009: -17.5%
because that was different :mellow:
Best Wishes
Paper Tiger
PS:
Attachment 7665