AIR - Air NZ.

**ados_nz** · 31-03-2022, 07:16 PM

And this is effective from ex rights date? 7pm 5th April?

**mikelee** · 31-03-2022, 07:45 PM

$2.2b will probably last just over a year, with salary the 2nd highest bill, costing the airline more than a billion each year. So unless borders open soon, hopefully by Nov/Dec, and fuel price stabilise it'll continue to be a turbulent ride for the foreseeable future. Direct flight to NYC from Sept is way too soon I reckon. No point in doing that unless you can fill the plane and with testing cost still sky high I doubt that budget tourist will be back in force until next year when most countries finally rid of testing and vaccine requirements.

**Beagle** · 31-03-2022, 08:07 PM

Agree that the new route to New York is mainly about window dressing the revive and thrive story.
https://www.goodreturns.co.nz/articl...or+31+Mar+2022
Jarden and Craigs have updated their target price 1 year hence and see it as 60 and 64 cents respectively, average target price 1 year from now is 62 cps.
Required rate of return in this, which is obviously a very high risk industry, must be at least 10% per annum so that suggests a fair value of about 62 x 0.9 = 56 cps next month. That values the rights @ 3 cps.

I see it as less than that as noted earlier today.

Just for fun...One thing is for sure AIR's aircraft will not be climbing out anything like these ones https://www.youtube.com/watch?v=zC89uDi8mEg
Fun fact as to why airshow demonstrations with the F22 fighter jet are so short.
According to one video I watched the commentator said they burn US 300 gallons (about 1125 liters) a minute, nearly 20 liters a second on full afterburner and they only hold 7500 liters so you get about 5 minutes on full afterburner and its time to land. Obviously in combat anywhere not close to a tanker aircraft for inflight refueling one uses afterburner very sparingly lol.

**Dassets** · 31-03-2022, 10:46 PM

Correct. An adjustment is also made to the entry price to account for the theoretical rights price.

**nztx** · 31-03-2022, 11:46 PM

Is Greg getting a large success bonus for building the first Temporary Bridge into the fresh air or does that
come later when Refresh Pocket Raid #2 or #3 becomes necessary to hoodwink the gullable retail holders
when the Story needs to be rewritten for further chapters of 'We see distant lights on horizon' ?

Perhaps in later revisions will come revelations that the big birds fly upside down all the way
to NY to save Avgas and to not blind the eager boys and girls gazing out from a Beehive, as they fly past

**ados_nz** · 01-04-2022, 07:21 AM

Originally Posted by JohnnyTheHorse

Which would typically be extra collateral as if you were short on a sell price of the rights issue. But again will come down to individual agreements.

Does anyone have experience with how CMC markets treat this? Their website says

Rights issues
With a rights issue, a company will offer its shareholders a chance to buy newly issued shares, usually at a discounted price, before they are offered to the public.

In these circumstances, CMC Markets' clients might get to choose between three courses of action relating to share spread bets. They may be able to:

1. Sell their rights
2. Take up their rights and trade the cheaper stock
3. Do nothing and let their rights expire

Its not clear how this applied to short positions so was hoping someone has been through this before?

Also, if any adjustment is made would it be expected to occurred on the 5th April at 7pm? (I.e. open the next day at the adjusted price)