Don't forget that Index has a zero baseline so not there yet.
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AIR looking incredibly weak and yet to give any signal that it is time for re-entry. AIR is now in a bear cycle, which is usually characterised by big drops, followed by ~25% rallies, before dropping further. My trading plan is to look for ~180 (a major support area) entry on capitulation, with the hope of a dead cat bounce to~225 region over the course of several weeks. High risk play.
Cool... 180 will yield buyers a juicy 10.8% (at least for a couple of years?), not counting a Virgin bonus, so that'll be very nice :) :) :)
Stock fished the day right on its projected NTA level as at 30 June 2016. Company has bought back shares before when at a discount to NTA and has well over $1b in cash.
Last time I checked QAN are trading at 1.7x NTA, Delta 2.25x NTA, American Airlines 3.25x NTA to name three I follow. All trading on 2016 PE's of late 5's to late 6's and AIR is now 3.7 times FY16 earnings.
I know any investment in any airline is high risk but there's high risk and then there's cheap as chips which ameliorates some of the risk.
(Disc Holding, DYOR, not to be considered professional advice or a recommendation)
I am stunned at the SP at present, there's drops and then there's drops. Sentiment is ugly plan and simple but its not based on fundamentals, I am looking at buying the other half of the holding I had and nearly did so today but just not sure it wont go below the $2 mark at sometime and my timing thus far has been far from ideal. Even if they shake the VAH monkey on the back I am wondering if that wont even put a stop to it. Sellers dictate the price of any share and there doesn't seem a shortage of them at this level....
Forgot to mention, coming back from Wellington the flight was again 90% full. The koru lounge emptied out quite a bit when the koru hour flight was boarding but I was on the next one so had some additional time to kill but from what I saw there were no shortage of travellers.
wd I look at the current SP as completely irrational and ridiculous and leave it at that in my mind, kinda like if Briscoes announced that they were going to have a sale of all their stock at their cost price.
Anyone keen to catch the falling knife.....? It is looking tempting, but it keeps dropping
To be honest I am shocked at the SP decline. Would love a crystal ball to see where this goes 12 months from now.