AIR - Air NZ.

[Beagle]

Great result. One of the best performing airlines globally and it looks like their result will get even better next year. Dont recommend buying in at these levels as they are fully valued atm.

Really ? Extract from sharechat article today.

The stock is rated an average 'buy' based on six analyst recommendations compiled by Reuters, with a median target price of $2.30

.
These broker forecasts were before this stellar annual result. I fully expect analysts to be currently working on upgrading their forecasts and of course its worth remembering that the stock currently trades cum fully imputed dividends of 15.5 cps.

[mp52]

...Dont recommend buying in at these levels as they are fully valued atm.

Depends what you mean by "these levels" I think. My heartfelt appreciation to Roger and other "old-timers" who drew attention to AIRs value when the Herald was kicking them in the guts. Not many value offers like this on the market at present (and from an airline - who'd have thunk).

DISC: Holding

[mp52]

Sorry DingoNZ, the DRP was suspended a while back! By all means use your windfall to buy some more on market though!

It's not made that apparent on the AirNZ site either but the latest market announcement doc confirms its suspended.

[Beagle]

It's not made that apparent on the AirNZ site either but the latest market announcement doc confirms its suspended.

Thanks for confirming that mate.
I'll be attending the AGM and will be making enquiries behind the scenes. My training as an auditor makes me like a beagle dog at the airport sniffing for trouble and my radar sense is that there's something in the vicious and sustained kicking the Herald gave the airline....then followed by a string of good press...or on the other hand perhaps they simply took note of the scathing e.mail I and one or two others sent them or perhaps AIR's legal representative gave the Herald a shot across the bow ? Anyway.. it gives me something to sniff around about.
If I find out the Herald Editor was buying shares in and around the time he gave the company a string of bad press there's going to be trouble coming his way.
The other thing I want to ask about is whether the new Dreamliner is performing as expected.
Disc - I added more AIR shares to my portfolio this morning.

[Marilyn Munroe]

Any news on the cash burn at Virgin(Underarm Bowlers Division)?

Pity JK ruled out futher asset sales, he would have got a ton of money selling Cullen Airlines to Etihad based on this result.

Boop boop de do
Marilyn

[Beagle]

Any news on the cash burn at Virgin(Underarm Bowlers Division)?

Pity JK ruled out futher asset sales, he would have got a ton of money selling Cullen Airlines to Etihad based on this result.

Boop boop de do
Marilyn

ALWAYS looking for a negative, never seems to be a balanced or objective comment... seriously why do you bother contributing ?
Is it so hard to have a positive word for the work the directors and staff have done...NO lets flog it off to some Islamic state owned airline and hand over control of a national asset so they can rape all New Zealanders for whatever air fares as they see fit....bloody brilliant !!! That would be fantastic for the N.Z. economy, (sarcasm intended). Don't give up your day job if you have one.

[Schrodinger]

My thoughts are based on a longer timeframe and I think AIR has had a nice run recently. If you are interested in future capital gains you might get dissapointed and buying in @2.2 for a capital gain isnt savvy imo. Havent run into a useful NZ broker who gives good avice.

Of course, if you are a short term speculator then by all means gamble away...

[mp52]

Fair enough. Not a speculator but not necessarily a buy-and-hold either. I think there's upside potential for Air NZ 2-4 years out. Their early investment in new fleet and the added flexibility this provides in partnership arrangements and cost reduction will take some time to play out.

Didn't buy in @2.2 tho.

[Beagle]

Let me see. Based on an ex divvy price of $2.035, ($2.19-0.155) and 2014 normalised earnings of 21.94 cps the stock is on a trailing PE of only 9.28 and the directors are very confident of good growth to come.
Good luck to those hoping it'll fall back again.

[Schrodinger]

Dont want to bring out the "Dont invest in airlines piece" but I think thats behind the 10 PE currently.