AIR - Air NZ.

[Waltzing]

https://www.nzherald.co.nz/nz/news/a...ectid=12341061

if NZ thinks this is doing a good job in the new world of hardening systems to this and future health solutions for society?

My military family who are consultants are now furious with both the government and management in new zealand companies. They consider civilians are slack in there performance in general.

[trader_jackson]

Forsyth saying today they lower their target price from $1.00 to 70 cents... I don't know of a broker/analyst that has a target price over $1

Yet AIR is currently trading at $1.62 and nearly hit $2 last week.

I maintain that this is the most overvalued stock on the NZX by miles currently, but not sure if it will ever get remotely close to reality (low $1's) as the story is very, very strong - and really, the story is what counts (not fundamentals)

Forsyth target price 80 cents now... AIR trading at nearly 2x this 12 month target.

Absolutely crazy... but the story is so very strong and that's all that matters sometimes.

[silverblizzard888]

LOL - I assume this is the top end of the valuation span, assuming everything goes well? Low end for AIR clearly must be zero ...

Well they haven't exhausted all their financial options yet, so it wouldn't be zero until they've at least asked the shareholders for a cap raise. If Sky can pull $157 million from shareholders then Air shouldn't have any trouble doing that.

[Sideshow Bob]

Forsyth target price 80 cents now... AIR trading at nearly 2x this 12 month target.

On Sharsies, some are thinking they are just talking the price down, so they can hoover them up themselves.....!!

[Beagle]

Does MR B believe the share price will slowly deflate ? with what well over 100 billion in TD attracting nothing much. When will these prices adjust? The current rally seems to have reached its peak. With the US increasing cases are we going to be a retracement sooner than we expect. The new wave of investors may not be predictable and no one has surveyed the investor public yet.

Survey out overnight in the US reported on CNBC. Just 28% of people feel safe to fly.
Trans-tasman bobble is a long way away in my opinion. I expect a substantial capital raise, possibly as early as the next few weeks. There is a good chance (to gain the necessary institutional support) it will need to be pitched below the average analysts perception of fair value which according to market screener is currently 95 cents.

[traineeinvestor]

Survey out overnight in the US reported on CNBC. Just 28% of people feel safe to fly.
Trans-tasman bobble is a long way away in my opinion. I expect a substantial capital raise, possibly as early as the next few weeks. There is a good chance (to gain the necessary institutional support) it will need to be pitched below the average analysts perception of fair value which according to market screener is currently 95 cents.

You're not the only one thinking that AIR will do a capital raise. IMHO, they need to do it well before they start drawing on the usurious government "loan."

https://www.nzherald.co.nz/business/...ectid=12340978

[BlackPeter]

Well they haven't exhausted all their financial options yet, so it wouldn't be zero until they've at least asked the shareholders for a cap raise. If Sky can pull $157 million from shareholders then Air shouldn't have any trouble doing that.

Well, it clearly is zero if the amount of their outgoings is consistently higher than the amount of their incomings (as it currently is). Sure - they can try to kick the can down the road by increasing the incomings with capital raises, but how sustainable will this be?

At the moment they are bleeding from memory something like $100 m per month. How often and at what share price will they be able to fund this loss with new capital? I suspect at some stage the Sharesies investors might run out of money ...

Just to be clear ... I expect that the company will be kept alive by the taxpayer. Just not optimistic that current share holders will hugely benefit from this - the dilution will be horrible. But yes, I am happy to give you that this still means that the shares will keep some value, I suspect however this value will be much closer to zero than to the number you mentioned.

[Beagle]

You're not the only one thinking that AIR will do a capital raise. IMHO, they need to do it well before they start drawing on the usurious government "loan."

https://www.nzherald.co.nz/business/...ectid=12340978

They'll want to get it done before too many more stories like this one come out. https://www.nzherald.co.nz/nz/news/a...ectid=12341061

[Clints]

I am travelling to Queenstown with the family in July school holidays. Booked the tickets in level 2 when prices were still reasonable. Have just seen the dreaded "We are currently processing a change to this flight... We'll be in touch as soon as we've found you the best alternative"
Wonder if AirNZ aren't happy to fly us down on cheaper tickets when they could make 3 x the money for those 4 seats.

[winner69]

I am travelling to Queenstown with the family in July school holidays. Booked the tickets in level 2 when prices were still reasonable. Have just seen the dreaded "We are currently processing a change to this flight... We'll be in touch as soon as we've found you the best alternative"
Wonder if AirNZ aren't happy to fly us down on cheaper tickets when they could make 3 x the money for those 4 seats.

You prob right about getting screwed ....good luck ...please keep us informed on what develops