AIR - Air NZ.

[slimwin]

Seems 787's don't like lightning strikes. Ours is grounded in Perth right now

[brend]

Seems 787's don't like lightning strikes. Ours is grounded in Perth right now

I think thats ground control policy. I had flights delayed in SYD due to lighting strikes.

[Beagle]

some people might like to buy a new trinket with said profits. Out of interest where would you see the top Roger?

Fair comment and a difficult question. I think the market was very pleasantly surprised by the trading update both in terms of customer demand and fuel. Another positive surprise is the Opec decision not to trim output. I'd rather not put it out there where I see full value because the gains to be had from the fuel price are in such a state of flux at present both in terms of the severity of the oil price fall and duration.

The question in my mind is if the Opec members are in apparent disagreement and cannot seem to come to any production accord with non opec members, (its extremely unusual for Russian representatives to have a pre-Opec meeting with key Opec members), what does this suggest about the medium term prognosis for oil prices ? What about the long term effects on the North American shale producers if oil goes below their average production cost or even cash cost ? Perhaps this augers badly for the long term supply situation ?

Given that fuel cost AIR just over $1.1b last year frankly its almost anyone's guess what their fuel bill will be in 2016 but it looks quite possible that it'll be a lot lower than 2014.
Even though AIR has had a good rally from its intra-day low of $1.75 at the peak of Ebola crisis, (up 36% since then), its perhaps worth noting that many of the American carriers are up well over 50%. The PE is very cheap, the dividend yield looks decent and they have ample imputation credits to fully impute dividends almost indefinitely.

In addition I have a very high level of confidence in management and am very impressed with the job the CEO is doing. In a market where many have started to question growth stocks on a PE of circa 30+ AIr continues to stand out with excellent performance and to my mind is good value even at today's price.

[Master98]

some people might like to buy a new trinket with said profits. Out of interest where would you see the top Roger?

stupid question,DYO

[Beagle]

http://www.cnbc.com/id/102219498

$35 dollar oil a possibility ?

Qantas up 7.5% at $1.93 at last look on 16 m shares traded which looks pretty strong for a company that's trading on a positive outlook only. Must be the extra savings for those old tech planes.
I'm really starting to think today's rise of only 3% to $2.41 is slightly under-done for AIR.

P.S. Here's a look at how various airlines around Asia have reacted to the Opec news today. Most up circa 6-7% and Air only up just over 3%.
http://www.cnbc.com/id/102222780

Good news with positive messages at the VAH AGM recently. Looking at profitable trading for Q2 and how could it not be profitable for the rest of the year with oil prices falling out of bed !!
http://www.asx.com.au/asxpdf/2014111...jyknwcf5yl.pdf

[BFG]

Yup, definitely a strong buy imho as long as oil stays down (it will). Expect some great margin growth next year.

[tzbang]

stupid question,DYO

Jeez I'm sorry, how offensive of me to ask someone for their opinion. What was I thinking.

[slimwin]

I think thats ground control policy. I had flights delayed in SYD due to lighting strikes.

Nope. Actually got hit. Delamination out of limits on spoiler and wing. Engineers scratching their heads. Very common for aircraft to get hit but not cause that ammount of damage. It leaves a spot on aluminium airframes. Asia pacific is particularly prone to strikes. It'll just end up being a repair but at this stage they are still just learning how.

[BFG]

Incoming Huge Projectile can shed some light on this...

[Master98]

some people might like to buy a new trinket with said profits.

every person has their own investment strategy, buy or sell at their own decision, you should't laughing them, for me if I bought shares have 40% gain just in a coup of month then i will sell it and take the profit, as simple as that.