AIR - Air NZ.

[sb9]

Hey sb9 - I'm ready to make a $4 call now

The world is so happy at the moment nothing to stop it

Heck even the ABs losing hasn't dampened punters enthusiasm

Looking forward to debating the TA / psycho aspects re round numbers soon - at $4

No worries

Good one winner, might agree with your call this time around. $4 target looks very achievable from here going by current bullish trend. However airlines being cyclical in nature always sleep with one eye open

[winner69]

I can't wait anymore... Queued at 3.45.

Still on the wait list?

[Raz]

Still on the wait list?

Still sitting on my last 200,000 shares, soon will be double you money for many, already paying enough tax on my realised gains this year. This is a sentiment play, the world has only changed to the extent bank deposits have been flooding into the market... most will be inexperienced investors, for them it will not end well.

[winner69]

Still sitting on my last 200,000 shares, soon will be double you money for many, already paying enough tax on my realised gains this year. This is a sentiment play, the world has only changed to the extent bank deposits have been flooding into the market... most will be inexperienced investors, for them it will not end well.

Billions lost when finance companies went turtle up and billions will be lost when the high yield chasers realise capital losses.

[couta1]

Billions lost when finance companies went turtle up and billions will be lost when the high yield chasers realise capital losses.

Like those high yield chasers buying Air shares currently winner, I'm sure that's what you mean.

[winner69]

Like those high yield chasers buying Air shares currently winner, I'm sure that's what you mean.

....not just AIR but many others.

[GTI]

....not just AIR but many others.

I think many ppl will call me idiot to buy Air now...same as to early this year when i followed Mr Buffett to buy Aapl...lets see my winning formula of low pe + good management will lead me through...my apple meal is a good one todate.

[Beagle]

Some Australian investors appear to think AIR's SP at N.Z. $2.30 is relatively good value compared to Qantas at nearly $A4.00 and its hard to disagree, perhaps explaining why it got a kick up today.
According to average analyst estimates on 4 traders QAN currently trades on a FY17 PE of 7.93 v AIR of only 7.02.
Curiously both trade on a forecast PE for FY18 of 7.5 so according to analysts, (if you believe their forecasts for FY18) the relativity of the two share prices is about right.

Posted 28 March 2017

Still sitting on my last 200,000 shares, soon will be double you money for many, already paying enough tax on my realised gains this year. This is a sentiment play, the world has only changed to the extent bank deposits have been flooding into the market... most will be inexperienced investors, for them it will not end well.

Its not a phenomenon unique to AIR, in the last quarter we have seen QAN up just on 45% and AIR up 51%. Nobody in their right mind would call QAN a high yield share.
Perhaps investors are now perceiving a better growth / yield environment and a better balance between demand and supply, (constriction on supply through long back order times for new aircraft and increased demand through cheaper pricing and a more stable growth environment)
My view is the market and outlook has changed to the extent that investors are now prepared to ascribe a more normal market PE for airlines rather than the deeply discounted one that prevailed a few months ago. The fact that these two airlines relative share prices have moved pretty much in lockstep as well as other airline prices around the world recovering nicely suggests the goalposts have moved. Many airlines are now trading on PE's that are now normal, (not expensive as many suggest on here) for the airline industry as opposed to being deeply discounted.

This http://www.stuff.co.nz/travel/news/9...-winter-period has gone unnoticed by anyone on here for example. Fact is Jetstar have built a truly awful reputation for cancelling / delaying regional flights and treating their customers with thinly disguised contempt and are reaping the "reward" of what they've sown.

[RTM]

Interesting to see this on Seeking Alpha. I've not seen many (any ? ) NZ stocks featuring there.

https://seekingalpha.com/article/408...ght-think-look

Nice summary.
Cheers
RTM

[Marilyn Munroe]

The other thing you can't rule out is one of Marliyn's mates in the sand state airlines like Qatar quietly building a stake after getting so comprehensively rebuffed by American Airlines ?

Qatar Airways CEO Akbar Al Baker has a reputation for speaking his mind. The directors of AA probably couldn't face board meetings with someone telling them how to run an airline.

Overseas investment in Cullen Airlines. Merger and acquisition specialists who are the pimps of the finance world would have run a ruler over Cullen Airlines. If there were immoral earnings in it for them they would have dressed up their report in stockings and heels and told it to go stand on the street corner. That they haven't or kerb crawlers with fat wallets haven't taken the bait suggests the lady is not attractive enough.

If Qatar wants to flash the cash in Aotearoa why doesn't Qatar Gas farm-in on NZ Oil & Gases Canterbury Basin project?

Boop boop de do
Marilyn