AIR

[cazzer]

When the sale by Brierley was supposed to be good for the stock (more free float) why does the share price fall to 42c? Brierley had to sell at a discount to persuade institutional shareholders to buy. How does that suddenly affect the value of the company?

[willy_wonker]

Reputable firms have valuation of AIR between 31-40 cents. But then, no one takes notice of valuation these days.

For what is worth.

[mulufans]

Logic would say that if it was 50 cents plus before BIL sold their stake then it's still worth that much. Is it good value at 42cents? It would appear so although the only true valuation is the price that people are prepared to pay.

[willy_wonker]

On the positive side, with Virgin and other airlines coming into NZ, there is a possibility that the Commerce Commission may go back to the drawing board about the Airnz/Qantas merger. If they do merge, the value could be over 60 cents easily. Mind you, Airnz is currently making very good profit and with outstanding management team and leader.

THE KING says the only way to dicribe AIR is it is a BLOB and only breaths because of the NZ GOV wont let it die.The company can do all the tricks it likes and is doing them but the day of reckoning is just around the corner thanks to Helen and Co.

BRL has seen the light why would you drop a large amount of money when selling because they feel better to move on and try there luck some where else, this is a traders stock with Gov backing, so play it for what your worth but remember the brick wall is around the corner, Good luck.:D[8D]

Watching from Australia Flying Air NZ 1 Feb WGL THE KING

[Dimebag]

Cazzar

Simple really. Sale is bad for the stock for one reason: Increased supply.

To dump the stock, BRY had to sell at 42c - a heafty discount to market. In order to attract the demand to offset the increased supply, the price had to fall.

The stock was richly priced for a long time simply because there was little in the way of free-float.

Dimebag (None held)

[cazzer]

But if Brierley has offloaded their shares why would people who have previously not wanted to sell at less than 49c suddenly be willing to sell at 42c? Are these people who bought the Brierley shares just trying to make a small gain? Is there another big seller in the market?

[Burgerbun]

And BRL really know how to invest eh king:D


I think AIR will be a share to watch this year.
Interesting times ahead. Merger talks may show some nice trading windows.


Theyre making money again and some big FX gains coming.


Well AIR thinks its good, 200 new investors.

In this case Dimey with the significant GOVT stake, dont you think the increased free float is better.??




Thinking of buying at 42c myself.

THE KING says Im with you clouds who cares that BRL are gone,:)
There is an old Latin saying, Miracules only last three days, this time next we will be saying who was BRL. :D

This a Gov. backed stock so Buy & Sell at will have fun.:)

Watching from Australia Wellington tomorrow THE KING

[marinesalvor]

good sentiments C9 and your majesty - I am buying more for those reasons, I take about 6 flights a week and am a delighted customer of AIR

[willy_wonker]

Yeah, I also bought some at 42 cents.

Nothing else interesting, so have a punt on AIR.

[fireflies]

Greetings.

I intend to take a punt at 43 cents

It has to go up.

There will be an overhang in the market for a while as those institutions who took up BIL's offer reweight.

My interpretation is that the reweighting had to start immediately, hence institutions had to start flicking the stock under the constitutions they work within.

Cheers

F

[Burgerbun]

Firefly, wouldnt be too worried about the overhang.

$92m spread around 200 new institutional investors is not big money.

Big support at 37cents

but 42c may prove a good entry.

[blackcap]

Heard a rumor that there might be a another rights
issue coming up.

Dont they need another injectio of Capital? That may help explain
the 42 cent price band.

Also all these instos picking up stock at 42 cents will be selling for a profit for a little while to come.

[willy_wonker]

BC, the rumour on the rights issue have been around for a long time. Everyone is expecting there maybe a rights issue to fund the new planes airnz have bought. I think the market have factored this into the share price. I spoke to someone from AIR and they said the company is doing very well. They are still restructuring and cutting cost.

THE KING says this must suckers day on the NZX first DTL now AIR, why did BRL leave AIR at .42c today they woul get even less why because AIR just gave 78Million shares to NEWS worth about $30 Million as last payment for a company that has disappeared into the wild blue yonder.;)

What realy get`s me is that 260 institutions bought with peoples super money a dud, Mr M might try to unload even lower price as it was money for jam could buy another TV station.

AIR is now a very Big NO<NO.

Watching from Paraparaumu THE KING

[floyd]

can it get any worse.... airnz is an embarresment

damn bottom draw

[willy_wonker]

What a DOG !

Just brought back bad old memories that no one wants to hear. Cant shake the Ansett nightmare.

Profit announcement new week. Anyone know what the market is expecting from next weeks profit?


Disc: Bought AIR at 42 cents.... eeeek....

[cazzer]

This is killing me (again).

I think the announcement will be great. Capacity is good, prices are fairly good notwithstanding compeition hotting up and costs will be much reduced. Watch for FX gains- Ralph told us to expect $12m bottom line for every 1c movement in the NZD- that was a few months ago when the dollar was heading towards 60c I believe.

Also bought at 42c.

[mikescott]

I am thinking this airline share price is going to falling down to 30 cents for News to get out. News will not want to put more money into airline as airline always being such bad investment when rights issue is coming. There is no reason for shareinvestoprs to be wanting to buy this company went so much stocking is coming from News and then coming from rights issue.

[marinesalvor]

what do you lot think of the HY result??

that $$ rate seems to help a bit

[ktw13]

I think Air NZ did not too bad given the hardout price compition in the market.

[cazzer]

Not a bad result indeed given the competitive environment. Offsetting this impact is the US$, which isn't going to fall a long way in a hurry.

THE KING says Great result NO div now or in the years to come yet the biggest shareholder NZ GOV gets a Div each year never heard about class type shareholders pour your money in and grow old but it is nice to say to somebody outside of NZ I have AIR NZ shares.!!

Also to many shares now on issue with Mr M with 78 million to dump people have small memory but i note good turnover broker`s delight, really a shocking BUY. [xx(][xx(]

Thankyou for reading this lot. THE KING

[willy_wonker]

I just have a odd feeling someone wants this share price down with all the "Undisclosed" sell order.

[willy_wonker]

Why have there not been any SSH filing from buyers of the AIR placements? Odd or interesting?

Instus are required to file SSH if they increase their holdings.

[blackcap]

quote:Originally posted by willy_wonker

Why have there not been any SSH filing from buyers of the AIR placements? Odd or interesting?

Instus are required to file SSH if they increase their holdings.


Only if they hold more than 5% of the company WW.

[willy_wonker]

Thanks Blackcaps, I forgot about the 5% thingee.

[willy_wonker]

J Beware clients wont be too happy about buying shares at 42 cents with a rights issue and further 78 million shares looking for a buyer. Dont forget SIA airlines holdings. They are also sellers. Why would SIA want a minority shareholding in AIR?

A good example of a stockbroker that looks after instu first and private client coming LAST. Any J Beware clients like to comment?

OUCH !

Disc: Shareholder of this DOG.

[Burgerbun]

hmmm slipping under 40c WW. Im surprised it didnt bounce off the 42c.

Pretty good performance over the last 2 years.

Got no idea why it keeps slipping...somethings up??

Seems to be major support around 36-37c.



Alot of times a big spike like that sale starts a new uptrend...however:(

[willy_wonker]

CN, here is the reason why AIR is coming down.

1. News Corp wants to sell their 78 million shares.

2. A rights issue to fund their new airbus purchase.

3. SIA also wants out fo their shareholding.

4. Competitive environment with Virgin and others coming in.

There seems to be alot of pressure on AIR. Geeezzzz, J Beware have made some bad calls these last few years ! Must be too much instutitional ass kissing.

[Burgerbun]

thanks Mr WW.

good points.

THE KING says WW NO one pushed you to BUY AIR you thought when BGR sold its 7.8% and the priced droped from $0.50 to $0.42 this said WW got to be a bargin and dived in, Now all the facts that you raised now where always there only the penny had not droped then but has now.

Dog is correct now and for many years to come even with good reports in the makeing so hit the toe out try elsware. [8D]

Regards THE KING

THE KING says sorry WW not BGR must be on my mine but BRL.:D

[huds]

They've stated there will be no rights issue in 04

Also News Corp had they option of cash payment, they chose shares

THE KING says NO huds thats wrong NEWS wanted money and after several months of Neg. had to settle for shares as AIR did not have the cash why would they NEWS want shares they where getting out of Air lines & love to play TV> :D

Regards THE KING

[willy_wonker]

quote:Originally posted by THE KING

THE KING says sorry WW not BGR must be on my mine but BRL.:D


You are the MAN, King.
Only got a small amount in AIR. Was bore so bought some at 42 cents for fun.
Long and wrong !

[huds]

Your telling me they would choose cash over having a stake in nz's diamond in the sky??!!??:)

[mikescott]

This is many times position when investors are buying shares they think are very cheap just because someone giving big discount. Brerly gives big discount by selling shares for 42 cents when price were 50 cents. But liking many things on discount, things no good that's why big discount. If shares good why Brerly he sells?

This is very asian thinking that if things are cheap must buying plenty. This is bad reasoning. Liking fish market, only smelly fish is selling to peoples at end of day - very cheap but also very no good.

[willy_wonker]

It will probably be good to AIRNZ share price to drop. This will put pressure on the government and commerce commission to approve the merger.

[biker]

Huge potential Hong Kong tax liability announced today.Is this a sign of the AIR bean counters sailing too close to the wind?


AIR
22/03/2004
GENERAL

REL: 0912 HRS Air New Zealand Limited (NS)

GENERAL: AIR: Hong Kong Tax Assessment

Air New Zealand advises that revised tax assessments for the Hong Kong branch
of its subsidiary New Zealand International Airlines Ltd (NZIA), have been
received from the Hong Kong Inland Revenue Department (IRD). The revised tax
assessments cover the years 1989 - 2002.

The tax assessed against NZIA for the period 1989-2002 is the equivalent of
NZ$47 million. Air New Zealand estimates that extending the Hong Kong IRD's
approach to include subsequent years could add a further NZ$60 million,
giving a total potential exposure of NZ$107 million.

NZIA has always obtained professional advice from leading accounting firms in
relation to Hong Kong tax and Air New Zealand believes the basis on which
NZIA filed its tax returns has been correct. Hong Kong IRD's assessments on
a different basis are unexpected and consequently have not been provided for.

The Board Audit Committee of Air New Zealand have regularly sought and
received advice on possible outstanding tax liabilities, including in Hong
Kong.

Air New Zealand's taxation and legal advisors have indicated that there are
grounds upon which the assessments can be challenged and Air New Zealand will
file objections. There is no dispute over facts or the manner in which Air
New Zealand has filed its tax returns; the issue is around the appropriate
application of Hong Kong tax laws. The Company expects that any tax
ultimately due will be less than the figure indicated by the revised tax
assessments.

NZIA's Hong Kong branch was established in 1989 to purchase and own all new
aircraft acquired by the Air New Zealand group.

In December 2001, Air New Zealand concluded that the NZIA Hong Kong branch
created an unnecessary level of cost and complexity to aircraft fleet
management. As part of the simplification of Air New Zealand's business, the
decision was made to wind down and ultimately exit the branch's activities.
This action will remove all potential future liabilities under the
methodology adopted by the Hong Kong IRD.

Any tax NZIA is ultimately required to pay can be met from Air New Zealand's
cash reserves without causing any operational or current financial issues for
Air New Zealand.

Because this matter will be subject to objections to the Hong Kong IRD, no
further information can be provided by the Company at this time. Any
material developments will be advised to the market.
End CA:00098346 For:AIR Type:GENERAL Time:2004-03-22:09:12

[wsheridan]

I'm surprised there hasn't been more comment on this. It looks like a ****-up of monumental proportions. Even if its only 20% of the sum talked about it will be a real problem.

[clearasmud]

With 4 billion diluted shares 50% of the problem is only 1.25c per share.
If you think AIR has a future 38c could be a good entry because 37c is a very strong support price

[biker]

quote:Originally posted by wsheridan

I'm surprised there hasn't been more comment on this. It looks like a ****-up of monumental proportions. Even if its only 20% of the sum talked about it will be a real problem.


Covers the period Bob Matthew and his BIL cowboys were stripping as much as possible out of Air NZ.Is this another of their dodgy tax deals coming home to roost?

[marinesalvor]

thanks BIL - from the taxpayers of NZ.. again

[willy_wonker]

Since Bob Mathew and the BIL boys were given the boot, BRY have only seen blue sky up north.

Good riddence to bad rubbish !

Large turnover on AIRs today. Over 12 million shares traded.

[willy_wonker]

What a MESS ! More rubbish found under the carpet.

http://www.nzherald.co.nz/storydisplay.cfm?storyID=3556621&thesection=news&thesubsection=general

THE KING says Willie there is NO easy money in investing as you really have to know from the inside whats going on. but one thing that has tickles me is this Sir Selwyn bloke who after AIR fell apart collected his pay and was off like a brides nightie not heard about again untill he made a move on the Company Vertex and that has not worked out to well too,
But at the time the papers refered to the move as great he is a losser who keeps winning.:D

AIR should be avioded at all costs even as the stock falls and memenbers keep saying now the time, the sure thing that could happen is the CO. will hit a brick WALL.[B)][B)]

Regards THE KING

[willy_wonker]

The majority of J Beware clients will not be too happy about getting in at 42 cents.

[Nightmare]

quote:Originally posted by willy_wonker

The majority of J Beware clients will not be too happy about getting in at 42 cents.


Same as those people who were listening to you on Bliss and PRG, WW.

Where's that 8 million Bliss shares coming? Still waiting as I LOVE buying stocks when others are selling. [:p][:p][:p]

HA...HA....HA......:D:D:D

[willy_wonker]

Hey Nightmare, have you had your regular scheduled visit to your psychologist?

http://lcsupply.com/images/joke_fence.jpg

LOL :D

[Nightmare]

Yes, WW - and like Flip Flop Cloud Cuckooland 9, you are running like Osama Bin Laden (cold blooded murderer coward)and not answering some simple questions. :D:D:D

Where are the Bliss shares? [:p][:p][:p][:p]

[fireflies]

Good trading on this share.

Congratulations thosse who bought in at low levels.

Overhang now gone?

Cheers
Firefly

[biker]

Board meeting next week. Some big decisions to be made.

THE KING says Willie AIR buys $1,200 Billon of Aircraft and NOT a word said you being a big holder an all.:D

Regards THE KING

[willy_wonker]

Me not so silly Mr KING. Me sold AIR when share price increase with profit upgrade by J Beware and First NZ. Willy made enough money for a packet of mixed lollies at the local dairy. :D

Willy is faster then a skunk on heat.

[Benlamnz]

Air New Zealand is in for the long haul
Jun 15
Tansy Harcourt


Ralph Norris has whipped Air New Zealand's ailing domestic business into shape - now the airline's chief executive is focused squarely on its long-haul operations.

Within the next few weeks, Air New Zealand will announce its strategy for winning back the high-yielding business travellers on long-haul routes. The airline is understood to be working on a "truly flat bed" for business class, along with significantly upgraded cabins, menus and services.

"We believe what we are going to launch in the market place is going to make us competitive," Mr Norris told The Australian Financial Review.

"We need a new configuration on our long-haul aircraft so they can start to compete with Emirates, Singapore Airlines and Qantas. There is no doubt the configuration of our aircraft has aged and we have not kept up over the last four or five years."

If successful, it will be a remarkable turnaround story from an airline on the brink of bankruptcy just four years ago, to one about to try give Qantas a run for its money on its most profitable route - the west coast of America.



advertisement



advertisement

Qantas is believed to make a large part of its profit from flying non-stop between Australia and Los Angeles, a route it has largely to itself because of domestic government policy.

Air New Zealand has had little success luring high-margin Australian passengers through New Zealand and then onto the west coast because of the quality of its business-class offering and the additional time added because of the extra stop.

But Air New Zealand is now adding direct flights between Christchurch and Los Angeles and will begin flying direct to major west-coast destination San Francisco by the end of this month.

It's a move Air New Zealand hopes will provide a viable one-stop alternative for Australian passengers heading to destinations on the west coast other than Los Angeles, who do not want to transit through the notoriously congested LAX airport.

New Zealand's flagship carrier believes the bolstered route network and international cabin upgrade will help it win back its disillusioned ex-passengers and lure passengers from rivals.

"Long haul has not performed as well as it should have and it is a challenge," Mr Norris admitted.

"We've got some strategies that will see us get better access to the Australian market. Hubbing out of Auckland, one stop to San Francisco by this month. We will be providing services that will be attractive not only to New Zealanders but Australians also," he said.

As part of its plan to bolster its long-haul business, Air New Zealand announced earlier this month a multibillion-dollar order for 10 Boeing aircraft and the option to buy an extra 42 planes.

The airline will spend more than $NZ1.35billion ($1.22billion) on two of Boeing's new long-range, increased-efficiency 7E7 aircraft as well as eight new Boeing 777-200s, which will increase its long-haul seat numbers by 20 per cent.

The long-haul market represents "phase three" for Air New Zealand.

Mr Norris's first task was fixing up the domestic businesss, which it did by turning the airline into a low-cost carrier with no food, a single class and predominantly internet bookings.

Next, the airline focused on its Pacific business, cutting costs and beefing up flights.

But for the international market, Mr Norris believes an exactly opposite fix is necessary.

"When you get into the long-haul, people are looking for a bit more comfort. They want to be able to sleep and they are prepared to pay a premium," he said. "Talking to many of our customers who don't fly us on long-haul any more, they have said if we come back to them with a great product they will come back."

THE KING says love how AIR has whipped things up as you have stated we are flying to WEL on 28th June, $72.40 P/blue as AIR $199.00 just tell me who is whipping who. :D

Watching from Australia THE KING