CEO's.......
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One could presume that CL, having been on the VAH board for about 20 months has had enough time to either not like what he has seen and/or has realised his strategy for improving VAH profitability (and no doubt some agressive ideas) has not, will not, or refuses to be, embraced.
This is a major shift in policy for AIR. One of its four pillars for profitability and growth ( according to CL in the past) is about to be removed.
The loan by AIR to VAH (on arms length commercial terms) was obviously needed as an interim measure to provide some solidity to the balance sheet thereby protecting VAH's share price from temporary collapse and ipso facto AIR's investment. The loan is only for 12 months and with AIR contemplating a sale of their interest in VAH, seems like a very good move.
Pretty sure CL has been on the board for longer than that, in fact my recollection from my discussion with him after the 2014 annual meeting in late 2014 was that he'd already been to one or two board meetings.
Rumour has it that AIR's bean counters have been over there having a good look under the hood and it seems clear they're unimpressed by what they've seen.
Hopefully they can extricate themselves from VAH without too much of a haircut.
Looks like a race to the bottom ...
http://www.nzherald.co.nz/business/n...ectid=11614053
Theoretically a very good time to sell it's 26% stake of Virgin (at a loss)...
from my post #5056 page 338 3rd March 2016
This day years ago
http://www.nzhistory.net.nz/teal-bec...ir-new-zealand
And to celebrate AIR have some ripper specials which you'd almost think were an April fools joke on grabaseat...like under $500 return to Honolulu on a Dreamliner !
Sweet deal mate, congrats and enjoy...I am very tempted by Honalulu deal but comes at a very busy time of year for me so...as they say in the old Toyota advertisement, Bugger !
I sense the short term SP performance of AIR has become something of a lottery inextricably linked with how well they extricate themselves from Virgin. We could see a decent bounce if they execute well followed by a buy-back or special dividend. Pleased with what they're doing but wanting to sell and achieving a good result are clearly two separate matters and could possibly be hindered / delayed by regulatory consents.
This whole Ansett MK2 matter, (ouch... there I said it), is obviously something of considerable sensitivity, perhaps even embarrassment to AIR's board and management as its extremely unusual for them to decline to take any questions or interviews from the media after an announcement of that significance. Might save up one or two curly questions myself for the next annual meeting...
I see Craigs have 2017 EPS of 40c and Morningstar 64c. I hope Morningstar are the more accurate.
Yeah its a shocker mate and FAR more times than not ends up a mess.
Sorry, I can't put my thoughts into writing regarding that other matter, hope you understand why.
Analyst consensus is still 55 cps earnings for FY16 and FY17. http://www.4-traders.com/AIR-NEW-ZEA...07/financials/
Dividend yield nearly 8% net fully imputed, that's 11% gross, excluding the possibility of any special divvy or buy-back which may be on the cards again once they extricate themselves from the Australian ****.
PE of 5 so any potential buy-back would be highly EPS accretive.
Most loved firm... can't complain.
http://www.nzherald.co.nz/business/n...ectid=11614783
Mean I know calling it Ansett but they should have known better so deserve it and I might yet make mention of Ansett MK2 fiasco at the next ASM, we will see.
So what's my wish list for the period between now and the annual meeting.
1. A clean and complete exit from Virgin that includes repayment of that short term loan they recently advanced to them. If they have to take a haircut on their misadventure then so be it but I'd like the exit to be clean, tidy, complete and executed before the next annual meeting.
2. A deal that includes an ongoing alliance between the two carriers, code sharing on flights in a way that's mutually beneficial.
3. Anything more than $350m Kiwi provided its clean and tidy is something I would see as a reasonable exit from this mess.
4. Continue to execute well and deliver an underlying profit of not less than $900m before tax for the year.
5. Last and by no means least - Pay out the full proceeds of the Virgin sale to shareholders
Until they can prove they can clean up this mess in a satisfactory manner I think the shares are fair value at around $2.85.
Disc - I presently hold only a modest position.
Poet. In theory yes but there's very little in the way of a free float in Virgin, vast majority is tied up by airline shareholders who bought in for their own reasons.
If we all tried to dump our Virgin shares on the Aussie market guess what would happen to the price :eek2:
Some Chinese airlines are growing capacity to Australia by 50% this year so hopefully one of them will take this motley canine off AIR's hands at something like fair value.
Interesting article 777 lets just hope an existing or new shareholder is happy to pay up for air nz stake
Yes it is a fascinating read, thank you 777. This has been building for some time I believe. About this time last year was when the cracks in the relationship between Borghetti and Luxon first appeared in public. C.L. came out in the media and basically said that Virgin should be making a profit already and in a thinly disguised manner was critical of management for not achieving it, (by early 2015).
Been some interesting articles on this matter behind the paywall on NBR too...not quite a juicy as this one but interesting nonetheless. Basically AIR is better doing their own thing and they should pay out the Virgin sale money in the manner I suggested or an on market buy-back. Govt will be happy to see a special dividend no doubt whatsoever about that.
And if you had got on the bus to Hawaii, you could've got to Honolulu for even less: https://www.facebook.com/AirNewZeala...3515909580777/
This is Air NZ's marketing team at its best. Forgetting all the noise here about Virgin, electric cars and everything else, this sort of video is part of what make AIR such a great company.
Some good posts around the time of AIR buying the VAH stake..some had doubts as to why ... some thought it was a good strategic protective and gain access move....
see those posts starting at page 33
TA's OBV indicator thought it was just plain dumb!! see chart below
Also some posters doubted the TA.... see screen grab below
In all fairness Jaa's postings around this time were very informative
http://i458.photobucket.com/albums/q...2002042016.png
http://i458.photobucket.com/albums/q...42016%20st.png
From the AFR 30Mar16
Air New Zealand could sell its stake to either Etihad or Singapore Airlines if minority shareholders supported the move. It could also mount a full takeover of the airline or sell the stake to a third partly, possibly a Chinese or American airline seeking to expand in the region
Read more: http://www.afr.com/business/transpor...#ixzz44ikfcpn8
Roger what do think of the Takeover chances suggested in the above?
Regards
RTFQ - Pretty clear AIR want to sell and crystal clear Chris Luxon no longer has confidence in Borgetti. Sorry folks in advance if this post is a bit fractured / disjointed but this is a collection of my thoughts on this matter over the last few days.
No chance whatsoever of AIR taking over Virgin if that's what you are asking me. They simply don't have the balance sheet strength to execute the deal without materially compromising their own position, risks vastly outweigh the rewards. No way the N.Z. Govt as major shareholder would approve that and extremely unlikely that they could convince the other airline partners in VAH its a good idea and / or getting approval from Canberra to take their stake above 49%.
Most likely outcome in my opinion is AIR selling its stake pro rata to remaining airline shareholders...they could well have pre-emptive rights to acquire same anyway.
Second most likely outcome is outright sale to another airline outside of existing shareholders, probably one of the Chinese airlines that are growing capacity into Australia 50% this year.
An in-specie distribution to AIR shareholders is also highly unlikely as it would leave the crown with a large stake in an airline that the board have lost confidence in.
I think we and especially I, need to take a deep breath here and reflect.
1. Neither Chris Luxon or Tony Carter were at the helm when the initial stake was taken in Virgin.
2. This is pure speculation on my part but I think its highly likely that the reason they lent Virgin the money a little over a week ago was because they had a pre-existing contractual obligation to do so.
Often partners have signed heads of agreement that if their baby need s further support they have a legal obligation to act in their associate companies best interests on a pro rata basis.
3. Chris Luxon has been rooting for better financial performance for quite some time. He was on record about a year ago basically saying their financial performance wasn't good enough. I said the same thing on here at the time.
4. Other airline partners are prepared to take a longer view and are prepared to continue to back the CEO Borghetti so there was little C.L. could do and I think basically his position on the board became untenable after he called Borgetti out and the other shareholders wouldn't back him.
5. Good that we have Tony Carter who strikes me as an absolute gentleman to come to the rescue and calm the waters and hopefully that still means AIR and VAH can enjoy a mutually beneficial alliance going forward.
Been thinking about this a lot this weekend. Chris Luxon is a relatively young CEO and obviously has plenty of fire in his belly. I like that he's taken an aggressive approach here and won't tolerate mediocrity which is probably what Borgetti represents.
Bottom line is Australian unions are extremely powerful and have long outdated work practices and unless the CEO is prepared to take them on head to head like QAN's CEO did and get a wage freeze, costs of labour will be extremely high. Any wonder why a spokesman of the pilot's union in Australia said things are good at Virgin ?...they probably are very good for the senior pilots and other senior workers but not for the shareholders that's for sure !
C.L. isn't happy with the return on equity that Virgin is returning to AIR and neither am I. No way with Borghetti's track record the company deserves more capital, risks outweigh potential rewards.
Someone has to clean up Rob Fyfe's mess and Mr Luxon and Mr Carter are in my opinion the right men for the job. If they did nothing AIR, as I suggested the other day would be on the hook for potentially another $A300m further equity as their share to get VAH to a 2:1 debt to equity balance sheet, which is far from robust so that's the minimum really. Someone has to stand up and say enough's enough... VAH's performance is pathetic at a time when most other airlines in the world have record profits and I am pleased Chris Luxon had the courage to do it. Tony Carter is the perfect diplomat to patch things over and help retain a mutually beneficial alliance notwithstanding the potential forthcoming sale.
I always thought those two would work well together...Tony the calmer older gentleman and Chris Luxon the fire in his belly CEO ruthlessly pursuing efficiency and greater profitability and growth.
I will give them the benefit of the doubt as to why they advanced that loan to VAH and will assume its because for one commercial reason or another they had no choice.
I'd be curious to know how others feel who have sold because of the loan now they know AIR have put their stake in VAH on the market ? Does the decision to sell change your view of management ?
Worth giving the team at AIR a chance to clean up Rob Fyfe's mess ? What happens if AIR makes an announcement in due course they've sold and contemporaneously announces a special dividend of 15 cps fully imputed and a $150m on market buy-back and you have no shares ?
As for me, I might look to accumulate back some of the shares sold on any further weakness and / or depending on monthly operating stat's in due course and get back to a normal balanced sized shareholding for my portfolio, (neither underweight nor overweight).
Thanks as always for your thoughts Roger Cheers
More on the Air NZ/ Virgin sell off from today's herald.... http://www.nzherald.co.nz/business/n...ectid=11616215
I think this article hits the nail on the head. AIR last week announced that it wanted out of Virgin which one has to assume they have lost faith in VAH’s strategy or at least the time it is taking. AIR says the codesharing will continue. But the remaining issue is that VAH needs more cash and where will it come from. Etihad and SIA could of course continue providing loans but that is not likely forever. They can not buy the AIR stake without making a takeover offer. So who is the potential buyer of the AIR stake. Another airline, maybe a Chinese one. If so, they will be more likely to want codesharing VAH with their own airlines, not AIR. Or it could be an American based airline but which one. It won’t be American Airlines which is increasing its footprint in our part of the World but works with Qantas in OneWorld.
Could we possibly see a Star Alliance (AIR, United, Singapore) takeover bid or is that too far fetched ? I think at the moment AIR is vulnerable with its extraction from VAH as the Australian market is very important to AIR. Certainly will be interesting to watch this closely. Happy to be out of AIR for now
I guess the other possibility is if AIR can't get a satisfactory price they simply refuse to inject further capital into Virgin and either dilute their shareholding as the company is forced to issue shares elsewhere or perhaps AIR is playing a long game here and will pressurise its airline partners to dump Borghetti and have a really intensive review of the entire operation of VAH. What's the bet Borghetti is losing friends at a pretty fast rate of knots... Happy to hold a modest stake while this intriguing corporate drama plays itself out.
Might the Australia government / politics play a part?
Virgin i think have some exemptions about foreign ownership - which Qantas not all happy with
Dont know the ins of outs of such things but just wondering
A bidding war for Virgin would be a great outcome
Never underestimate how much 'strategic value' is worth, no matter how perilous the financials look
Roger, Luxon's halo is starting to shine again
Rumour has it mate that he's been cleaning out a lot of the old dead wood at AIR...suppose a brave man would say Virgin the biggest piece of all :)
As long as he keeps his Chief Pilot he be right
Great story on Morgan in the Herald the other day on him
http://www.nzherald.co.nz/business/n...lery_id=159217
Looks like Luxon might have to go.
Best Wishes
Paper Tiger
I strongly disagree PT. Luxon has made a bold call that VAH as an investment is toxic for AIR and I agree 100%. Rumour has it their senior bean counters, one of whom won the coveted CFO of the year at last year's Deloitte top 200 business awards had a good look under the hood for themselves and aren't impressed. Luxon can be a stroppy bugger...you need a bit of fire in your belly to run an airline and I think the 60 year old Borghetti hasn't got it. If you can't get rid of the dead wood Borghetti then the next best thing is to get rid of their stake in VAH.
I Borghetti position at VAH is tenuous at best.
I am wondering if the troubles of Virgin(Under Arm Bowlers Division) are a demonstration of the intrinsic power of the incumbent in the domestic market.
If my speculation is correct it is even more remarkable because sometimes it appeared Queer and Nasty Airlines was being run by someone whose management style resembled the script of a Sir Les Patterson skit.
Boop boop de do
Marilyn
A little bird has told me a new route to be announced in 1-2 weeks.... definitely NOT in South America due to all of the issues they encountered whilst setting up Buenos Aires (very hard set up apparently, but going well). No indication as to where just yet. My pick is another Asian route - probably Manila given they have talked about the interest in the Philippines previously when announcing Vietnam...
http://www.nzherald.co.nz/business/n...ectid=11615316
Seems like a longer version of the Captain David Morgan story...a very good read. Extract "and Christopher Luxon has brought commercial intensity".
http://www.nzherald.co.nz/business/n...ectid=11616679
And even more airline routes to N.Z.
The old 'turbulence button' for when they served coffee! :scared:
Well being timely is more important..how long was he on the Board...around 18 months, he new what was happening and they they will get out of this investment through good lucky not good management obviously. Happy to be out for now, never rely on luck to make an investment work. If you get a special dividend then thats great however it will be based on luck.
People's thoughts on AirNZ's lack of Facebook and Instagram logo/link displayed somewhere more obvious on the site? They do a hell of a lot of marketing and showcasing the brand on these channels, you've currently got to go the Help & Contact tab and then Stay Connected to find any reference.
Currently doing a marketing assignment on AirNZ and cant help but think it would be an easy thing to do and surely beneficial.
I'm not sure where you are coming from Raz ? How did AIR get lucky ? Other airlines with a material stake have their representatives on the board.
Its been clear for about a year C.L. is not happy with the financial performance of VAH and that's only what's been said in public...
Happy for you to unpack your point of view more but luck doesn't seem to have much to do with it from what I can see. The way I see it C.L. has made a bold call that VAH has serious systemic issues and he's very unhappy with the way the CEO is managing the company.
Even if AIR just tagged along for the ride and propped VAH up some more what guarantee would they have that they'd get an acceptable commercial return on a say a further $A300m equity injection, (that's just their share) to get VAH's gearing down to 67% ? That C.L. undoubtedly backed by the AIR board made the call that enough is enough is a good sign in my opinion that they are prepared to act decisively to extricate themselves from this company and clean up this mess with the minimum possible damage, before it gets any worse. I'm not too fussed one way or the other with the special divvy although it would be nice in due course if it happens, but sending huge sum's of AIR's money to prop up an Australian company that seems both leadership challenged and riddled with systemic issues...that would be a very bad idea in my opinion and one I'm pleased they've emphatically rejected.
The luck is management depending on a larger airline to come along and buy their stake as a strategic position at this moment. I think they have got their timing wrong on this, should have happened earlier. The financial exposure is less material to the other strategic partners in VAH unlike AIR so their perspective may well be different as a consequence. It is a limited market out there and if true others are keen to offload, they will have already chatted to possibles in the market. Just weakens AIR negotiating position further.
I think we often do not realise the value of "gates"/ "slots" at some airports.
I would think in Australia, they would be of considerable value at Sydney and Melbourne airports.
The most important thing as far as I am concerned is that AIR have drawn a line in the sand as said to Borghetti, you will not get a single dollar more of AIR's money. VAH have already sucked about $A400m out of AIR and 5-6 years is more than enough time to prove the business model is successful and it isn't. When you've got bad cards the worst thing you can do is double down on a losing hand. C.L. is obviously familiar with the Kenny Rogers song and knows the hand Rob Fyfe organised isn't strong. Enjoy what would possibly make a good theme song at this year's annual meeting. https://www.youtube.com/watch?v=kn481KcjvMo If they take a $100m haircut so be it, not much in the context of a $900-$1,000m operating profit before tax this year and avoids VAH leeching hundreds of millions of dollars of them in the years ahead. Lets be honest, VAH is a pup...someone had to say it and its good C.L. isn't scared of making the bold calls and augers well for his capabilities as a leader going forward.
In my view the business model of Virgin is systemically flawed. They are trying to be all things to all customers through their various product offers and are weighed down by massive royalties to Sir Richard Branson for the use of the name Virgin. Him, senior management and senior pilots are the only ones making any decent money out of the airline.
Flew a number of American airlines last year. Virgin USA were excellent, especially for American airlines (and also had a safety video very similar to Men In Black, prior to this being launched) Alaska also above average. Together could be quite a force if can merge effectively.
Normalised the size of my holding today as I don't see any point in mucking about and don't want to be caught short when the market reacts positively to the announcement of AIR's exit from VAH and at the same time announces a large on market buy-back and fully imputed special dividend :)
The market is obviously relieved that VAH will no longer be a leech sucking AIR's blood and AIR will have a nice unencumbered flight path going forward.
And fair enough too. I'm back to half my previous overweight position now and happy to do nothing more in the meantime until we get further visibility on how things are progressing. Historical dividend yield based on last two, (some would say very conservative dividends) amount to 19.5 cps / 288 = 6.77% net. Its fully imputed so is 9.4% gross. Earnings growth should lift dividends going forward and a special is now very much back in play now too. One could take the view of looking through the current noise and saying this company can pay a very high sustained dividend yield, (management talked about the potential for tremendous free cash flow later this decade in their recent conference call). I think this is another perspective on the stock and one I feel is more pertinent now the flight path is in the process of becoming unobstructed.
Who wants it ?
https://nz.finance.yahoo.com/news/si...082726416.html
Yes heard you the first time winner :-) and agree
The fact that Singapore said "Anything else would be speculative at this point." rather than no we are not interested or similar points to they are interested and looking hard imho.
Jay - just reminding some that there could be a decent one off bonus for share holders in this
Some seem rather despondent/have doubts about holding AIR. I reckon no better time to hold than now and see how this pans out
Whether its a special dividend or a share buyback if there isa big win thats good - if no big win AIR will still be making heaps this year
Couldn't agree more w69
I'm relatively new to the party, but still holding my modest lot.
From
http://www.gmanetwork.com/news/archives/just_in/4
And nothing announced here yet. Embargo's obviously don't apply to the Phillipines.
Direct flights from Manila to New Zealand coming in December
Published April 5, 2016 4:54pm
Filipinos will soon be able to book direct flights from Manila to Auckland, New Zealand and back beginning December.
Air New Zealand announced on Tuesday that it will begin offering direct flights between the Philippines and New Zealand.
“The Filipino population in New Zealand has more than tripled since 2001 and is now the third largest Asian ethnic group, with around 40,000 Filipinos resident in New Zealand,” Air New Zealand Chief Executive Officer Christopher Luxon said.
“As the only non-stop service between New Zealand and the Philippines, our flight will be quicker and more convenient for travellers than the fastest current option which flies indirect, potentially saving up to two and a half hours each way,” Luxon added.
Trips to New Zealand is expected to be popular on both ends with flights three times a week via Boeing 767-300 aircrafts with flight time of around 10 and a half hours each way.
“The number of visitors from the Philippines is also continuing to grow rapidly, up more than 20 percent in the past year alone so we’re anticipating that demand for this service will be steady in both directions,” Luxon said.
Tickets are expected to go on sale by mid-2016 subject to government and regulatory approvals. —Joseph Tristan Roxas/JST, GMA News
- See more at: http://www.gmanetwork.com/news/story....tELWRl4X.dpuf
Yes also saw that, surprised not mention here yet
Thanks 777. Nice to see them giving those old 767's some more work. Oil's cheap so they're clearly still economic to fly.
http://www.nzherald.co.nz/business/n...ectid=11617859
AIR has a good day - solid increase in share price
That $3 beckons ......another couple of good days and we there
The Australian government would have to welcome such a deal.
All part of their free trade deal with China,their biggest buyer of Australian minerals.
Just think how it would benefit NZ relations with China,being the nice friendly people who sold them the 26% corner stone shareholding.!! lol.
Final payback for the Australian government forcing AIR to buy Ansett...utu,!!
Yep..the market is saying pretty emphatically and with solid volume there's plenty of interest in AIR's stake in VAH and they have the highly competent First N.Z. looking after them so a very good result is certainly possible. Was only a few days ago it traded at $2.81 intraday.
AIR is more than capable of progressing its own flight path's without a stake in VAH but its good that Tony Cater has already reached agreement with VAH's chair that their mutually beneficial association including code sharing where applicable will continue. WIN- WIN... bring on the on market buy-back and special dividend.
That halo of C.L.s to make a very quick reappearance eh Winner :) Very pleased indeed I normalised my holding yesterday.
I assumed that the bump in the share price this week was more related to the new destination of Manila, rather than because of VAH. (Down on news of other airlines starting new routes. Up on news of our airline starting new routes).
The two year low in the SP of VAH is telling me that there isn't much demand for AIR's stake.
Although I admit that I've really got no idea and unfortunately we won't know anything until AIR announces who they have sold to. And we've got no idea how long that will be.
It has only been a week so far but I would be getting worried if this process were to drag on too long.
I did same Roger and bought back in. Am pleased to see them extracting themselves from ongoing cash contributions to VAH. But remain concerned about who gets the stake and what effect it will have on AIR's Australian operations. Surely the codesharing will be up for review with any new stakeholder.
Any significant new stakeholder in VAH will need a Government approval and may even initiate a full takeover requirement.
Welcome back on board mate. It has been reported that Tony Carter has apparently agreed with the VAH chair that the codeshare is to continue. This will be on the basis that its mutually beneficial. I wouldn't be concerned by this aspect as its common practice as you know to have alliances, code sharing, even revenue sharing ones with airlines in which you don't have an investment stake.
Weren't AIR and Qantas code sharing at one stage
I seem to remember my (who is a NZ'er but considered herself an Aussie as she had been there for 40 odd years) booking on a Qantas flight only to find she boarded an AIR NZ plane when coming over her for a visit.
So it's being going on for quite sone time and cannot see why it would not continue, as you say Roger mutually beneficial
$3.... again :t_up:
I think this is far more than the announcement of new flights to Manila. I think Mr market has come around to seeing this from C.L.'s point of view and will be well pleased to see AIR's share of the somewhat mismanaged capital hungry pup in someone else's kennel. A nice clean exit at a good price could see a further re-rating. Happy to hold and enjoying being back on board :)
Mr market is saying the word is out and there's keen interest in AIR's stake in Virgin.
The thriller to Manila.
Boop boop de do
Marilyn
PS To those who see this post as not making a useful contibution to the discussion I applogise I couldn't help myself Er......um, to torture good taste even more could I refer to the Luxon Borghetti parting of the ways as the "rumble in the jungle".
I have been refraining from talking about Air New Zealand modifying their flight envelope, until now.
But I am still not going to do the:
Some people have done 2 U-turns on their AIR positions so fast that they have bought shares off of themselves.
Best Wishes
Paper Tiger
Back over $3, wow. Major rollercoaster of emotions with this company. Hopefully stays above this mark for a good period of time.. at least.
$2.95 seemed to be quite a stubborn resistance point and it got to $3 quite quickly after it got past $2.95. If it can hold $3 today, then we potentially have 2 resistance levels, $3 then $2.95.
Vin...The only emotions is whats been posted on Sharetrader forum..
AIR has for the last 5 months been stuck in an near untradeable (10% swing) boring trading pattern (range 2.70 to 2.96)..The only excitement for the TA people was the hope of a sustained breakout but that breakout only lasted a couple of weeks in late January..it failed and got knocked back by the Secular resistance pressure after setting a nice bull trap just above the secular resistance (3.17 to 3.22)..no doubt burning many, especially the low PE ratio brigade.
Comparison:..5 months ago Air was around $2.90 the NZX50 was 6050 ..today AIR is trying to achieve a closing day breakout at 3.01 up 3.5% while the NZX50 is 6750 up 12%..
If Air can sustain its breakout this time it could play catch up with the NZX...but it will need the global markets help which is presently pausing after a surprising lengthy rally and especially the Global airline index which has also paused after a sudden rally starting 6 weeks ago...
TA wise AIR is looking healthy..even though it has been in a lengthy boring trading range the primary up trend has kicked up a trend notch and is in a long term moderate up trend...this is a bullish scenario but that Secular resistance is still the big bogey...
Disc: Got bored and Sold out of AIR late in March at 2.84 (slight capital loss + DIV)..looked for bigger fish to fry and used AIR money to buy CAV (at 55c)..
Best of luck to the AIR holders :)
http://www.nbr.co.nz/article/singapo...ia-cs-p-187214
Seems that SIAL has purchased extra VAH shares. In part, the article states...
The Singapore-based airline announced to the Singapore Stock Exchange yesterday evening that it now owned 23.11% of Virgin, up from 22.91% previously.
Singapore Airlines also said it had chosen to physically settle a series of equity swaps it had entered into with a counter-party, at a cost of $A3.18 million, or 46.72Ac a share. This represents a significant premium to Virgin's closing price of 33.5Ac on Wednesday.
I know what you mean about getting bored Hoop, I guess that's what separates the traders from the investors. PS-Roger that be $3.26 Mate but what's 2c between friends.
Thanks mate. I'd better get some new glasses with part of my forthcoming special divvy :)
Plenty of speculation in the paywall protected NBR article about Singapore buying in and AIR doing a buy-back of its own shares with the proceeds but I reckon the Govt will want a special divvy as well.
Government loves these special dividends - keeps them in surplus to the next election
Maybe $300m from Kiwibank and $200m from AIR would be enough (35 cents soec div)
..
Yep,, very true Coulta..that what separates the traders (Overall I average out as a medium term investor/trader) from the long term investors...
Investors have to stick to their goals especially those like me that treat it as a business and earn a wage from it..we work harder and do longer hours at our investments..often a wake to 2 am and then up again at 7.30am.. I treat the longer hours as a payable wage for me ..As my portfolio is a taxable job for me...I need to keep earning +20 - +30% % per year average..(average overall bull market bear market combined). To do that I have to have working stocks...AIR was not a working stock..it went up 5% in the last year during a bull market which I should earning +40%pa.. I need this %age level in the bull years so to buffer against low %age returns or loses during the bear market times..That kind of result from AIR is a drag on my portfolio as now I have to find a stock to outperform above 40% just to keep my goal average up...I gave AIR a couple of goes..but it's too high up the cycle ..
.Have to prune the poor stock performers to maintain an efficient portfolio, so at that time AIR was one to go...