Nice work Roger, and the second to last paragraph hits the nail on the head as to why the share price has fallen IMO.
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Nice work Roger, and the second to last paragraph hits the nail on the head as to why the share price has fallen IMO.
Dear Leila,
Thank you for your e.mail and information and for the opportunity to speak with Mr Carter on Thursday 19th 1.15 p.m. (Note she subsequently suggested 1.15p.m. as a better time for Mr Carter)
That time suits fine and I look forward to discussing this matter further with him at that stage. My office number is noted below.
I know the directors and senior managers are extremly busy people so its perhaps helpful in terms of time saving to mention I'm fully cognisant of the Qantas report and outlook statement, its impact on QAN's share price and the fact that globally many airlines share prices have come under pressure in recent times for a range of reasons including the threat of increased competition.
I accept the explanation of the Virgin position at face value so its perhaps best if we concentrate on the issue of whether the investor day presentation contained any material information of which the market wasn't already aware. Leaving out the part cents, based on my observations on the 4 traders website, see link below, consensus market forecast before and after the investor day presentation were for earnings per share as follows:-
Forecast year Before After (This formatted better in my e.mail)
FY 16 56 56
FY17 55 52
FY18 42 38
You can see these consensus forecast changes by clicking on the Consensus and Revisions tabs towards the top of the page in the link below to the 4 traders website.
While it is accepted that consensus market expectation was for a very slight decline in FY17 earnings before the investor day release this was only by 1 cent per share from 56 cps in FY16 to 55 cps in FY17 but after the investor day release these expectations were lowered by a further 3 cps to 52 cps for FY17. I also note FY18 consensus view was lowered by 4 cps and consensus valuation was lowered from $3.26 to $2.82.
The fact that several analysts changed their recommendation rating on AIR stock after the investor day briefing and the fact that the company itself marked the release of same as price sensitive in my opinion is prima facie evidence that the information contained therein was not already totally in the public domain.
It might appear that I am splitting hairs here however whilst it is conceded that these downgraded earnings post investor briefing are not huge in absolute terms in the context of known additional competition forthcoming, in my opinion they are nonetheless real and certainly do leave open the perception that management took advantage of the situation and as you know I am certainly not alone in my view on that.
The main thrust of my effort as expressed before is aimed at the question of is there a better way to handle this sort of thing in the future so that restricted persons are both seen to be acting with 100% integrity and perceived to be ?
I am sure it goes without saying that many shareholders are very disappointed in the present share price of AIR and were shocked earlier this year when Virgin required shareholder support at a time when oil prices are so low. For what it's worth from what I hear most shareholders are looking forward to AIR extricating themselves from their stake in Virgin.
http://www.4-traders.com/AIR-NEW-ZEA...407/revisions/
Anything else interested parties in this matter want me to bring up with Mr Carter ?
Yes, thanks for taking this on Roger. Appreciated.
RTM
Great work there Roger, well done.
Great to see a proactive approach. One small point:
"...... that restricted persons are both seen to be acting with 100% integrity and perceived to be...""seen to be" and "perceived to be" are the same thing. Otherwise good stuff.
Yes ,great stuff Roger. Am looking forward to when the Insto churn dies down and hopefully some retrace in the s/p.
Appreciate your efforts Roger.
Thanks Roger - interesting to hear the outcome of your call
Anything else interested parties in this matter want me to bring up with Mr Carter ?[/QUOTE]
There is the issue of the cargo settlement Roger.
Obviously it was price sensitive and the executive must have known about it.
There is the issue of the cargo settlement Roger.
Obviously it was price sensitive and the executive must have known about it.[/QUOTE]
Agreed, I will definitely raise that issue. I checked and its good that their general counsel involved in the settlement negotiations wasn't one of the sellers. If he had of been we'd have a real mess here.
Thanks for your encouragement folks. Feels good to at least try and make a difference.
Agreed, I will definitely raise that issue. I checked and its good that their general counsel involved in the settlement negotiations wasn't one of the sellers. If he had of been we'd have a real mess here.
Thanks for your encouragement folks. Feels good to at least try and make a difference.[/QUOTE]
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And when do we start getting some travel discounts as share holders:):):)
Also one thing of note that jumped out of the letter(well done Roger) is just how closely have any of us been following the USA airlines?
It appears with institutions over there involved in AIR, it is worth keeping abreast of.
There have been countless companies who consider themselves to high and mightly to communicate with its Share Holders(owners) so this is a feather in their cap in that regard
good one Roger , well done, and to everyone else that takes the time to post good stuff here.
Ask them why they have removed ( or not put in...) the foot rests in the new Economy class seats ..... I was very disappointed and after traveling back fro uk the back of my legs were throbbing. With your feet flat on the floor now the risk of DVTs is much higher IMHO in the medical profession. Cut costs, yes but this puts lives at risk. FYI 1:3000 people get DVTs from Long flights . I'll have to take a box next time ..... to put my feet on, hopefully not a coffin box... Recently lost a friend to DVTs after a flight.... Mmmmm
Do i see a slight turn in the MACD , flattening off?
DVT a genuine concern for sure but more an operational issue and the footrest issue would make for a good follow-up question for the forthcoming annual meeting I reckon. For reasons I am sure you can appreciate I want to keep the discussion focussed on the main issue with Mr Carter on Thursday.
Good stuff Roger. As per others question remains on the cargo settlement and with so much $ on the line I would expect they were aware of this a week out.
DVTs are often associated with medical predispositions and flying cops the blame. Simply activating the lower leg muscles to contract is a simple answer to avoid stagnant venous blood flow ;)
Good to see less turnover today and more settled green arrows. Bought back in and hope I timed it better this time.