playing with fire...:eek2:
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playing with fire...:eek2:
Final reload for the day. Stoploss and take profit set, so time to enjoy this weather.
dead cat bounce....
The thing about airlines is that for the time any planes are in the air they are burning ever more expensive fuel with potential capacity (seats) forever unfilled and when they are not in the air they are paying increasing rentals to airports to park the planes. Invest in airports if anything not airlines.
Selling this rights issue like lipstick on a pig to people with very little financial acumen (ordinary New Zealanders) by way of emails to frequent flyers 'refuel for our recovery' is poor form - just like used car salesmen. You can say buyer beware which I agree with but this is really going to hurt the capital markets in New Zealand.
I think you need to put on your enthusiastic newby hat. Look at it that way. One AIR share was priced at $1.50 - give or take some.
They now offer you the right to buy for each AIR share you hold 2 additional new shiny shares (equally valued to the old shares) for only 53 cents each, i.e. if you buy now one AIR share you get for the price (one AIR share plus $1.06) three shares which would have been last week still worth $4.50!
Pay (at current AIR prices) $1.25 plus 2 times 53 cents i.e. $2.31 and get $4.50 (at last weeks prices) worth of shares ... if you use the Shareclarity DCF value, you even get three shares worth $1.79 each - What a bargain!
Just for clarification ... I don't recommend to do that, but I could imagine that this might be the motivation for the people still queueing up at the buy queue. Why else would anybody want to buy these shares?
Discl: don't hold and don't have a long enough barge pole to buy at any price ...
Interesting the FMA put a halt to this
https://www.fma.govt.nz/news-and-res...rder-longhorn/
However there are hundreds if not thousands on investors in Air NZ that are imo about to feel the wrath of the market and suffer a significant loss.
Buy $1000 worth. You can always bid for some of the left overseas at 50 cents