Originally Posted by
Teeps
I've taken the opportunity to increase my holding in AIR with the weakness in price over recent days. To me, this stock has significant movements based on a couple of competitive announcements. Again, turbulence is part an parcel of the aviation game and thus we see a bit of a bumpy ride in the SP. I still have absolute faith in the fundamentals of this business given the investment in fleet, its people and innovation w.r.t new revenue channels. Given the information publicised at the recent AGM, AIR is in a very good position domestically and internationally which to me will translate into a record FY16 year. My pick is for the price to breach the $3 barrier at or around the half year results announcement, with a significnat uplift from FY15 expected and a likely special dividend due.
AIR has a smart strategy of not relying on any monopolistic route position in the modern world and thus I believe the drop in SP is completely overcooked. I don't think we will go as low as $2.40 any time soon - I personally agree with Roger that fair value is circa $3.50-3.75 for a top quality organisation with excellent leadership and a stellar recent track record.
I'm in this for the long haul, so to speak.