Absolutely correct, who knows what'll happen in another 6 months time..;)
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You hav'nt done your maths correctly IMO--You hav'nt taken in consideration the correction in the SP at the cutoff time--I believe my rough estimate was somewhere around 6-8% (still in the black though),assuming you sold immediately upon div.closing unless of course ,you held on to your shares.(and then it gets a bit more complicated between dividend influence and company (SP) performance.) Correct me if Im wrong Roger
So when thinking about future div. you need (IMO) to take into consideration the potential drop in the SP (drop in the value of the company) Otherwise whats the point banking the div. if your shares take the corresponding hit? (the ''free money'' debate)
In other words your total profit/loss, in that share
No I didn't take any price correction into consideration. That was my return on the amount of money I had invested into AIR, not on the value of those shares immediately before or immediately after the payout. As I am in for the long term, I believe I have calculated the percentage using the correct method. Now if I have to sell my shares at the current price then I will have a net loss, but I have no intention of selling. Instead I intend holding for a number of years, maybe even 10 to 20 years.
If the SP continues to drop after each dividend by the amount of that divi then within 10 years AIR shares will be free and still paying 20 cps. Somehow, such a long term drop does not seem logical even for a cyclical share.
Seems like Chief of Marketing and Chief Customer guy has cashed in his bonuses and has $726,000 odd more in the bank tonight
Deserved it I reckon - hard working and successful guy
Nothing to do with how the company is performing I reckon - after all he still has 217,000 shares and some more performance rights
No worries here
I think I read that notice correctly
Well,thats the future..Im just bringing up the point that there is a condition attached to that 22% --it was not ''free money'' as only part was free and clear, so this needs to be taken into consideration when using it to ''value'' a share (undervalued?)in terms of the reason for buying or selling.---I believe if you immediately reinvested the dividend back into more shares and then looked at your value ,you would have a better idea--You would end up with more shares and a net worth or more or less than before the dividend,depending. You may still come out sweet,but I personally dont think it can be looked at as a ''given''---Your dividend is a liability to the company that has to be made up in some way to get back to their previous value. --Your banking on them getting back to that value by their performance. Thats fair enough but the dividend alone is not a reason why they are undervalued IMO----IMO that performance is solely what should be concentrated on at this stage--thats where the ''rubber meets the road''(or runway)
So - you are saying if somebody trustworthy guarantees that AIR maintains the promised divie of 20 cents, than it is already undervalued. I think I can agree with this assessment. However - the question is - how much is it worth if it does not maintain its base divi? In my view it is a quite dangerous assumption to rely on AIR being able to deliver 20 cents divie year after year. Just ask Mr. & Mrs. Market, they agree.
I hope that Mike doing a bit of selling isn't the start of another round of management selling - as doing so seems to put pressure on the share price.
His 403k shares were a decent whack of the 2.1 million traded that day .....a day when price was down 5 cents from previous days close of 185
Mike got just over 1.80 for his.
Looks like the Vietnam route hasn't been a big winner yet.
Frequency next year will go from 3 times a week to twice a week but the plane will be up-gauged from a 767 to a 787.
http://www.stuff.co.nz/travel/news/8...879-dreamliner