AIR - Air NZ.

[skid]

Be careful Winner. The wheels can easily come off in this airline business !! http://www.nzherald.co.nz/business/n...ectid=11527443

I hope the engeneer who was working on the plane brought an extra set of undies!

[winner69]

Just Roger alone is enough to boost the SP if he carries on

Roger--Did you notice KWs last post on the Black Monday thread --could this be the case with AIR? ( If its already been covered apologies)

Roger said the other the gvt and instos hold 91%

we could say govt plus insos plus roger hold 92% ....going on 93%

[Beagle]

Just Roger alone is enough to boost the SP if he carries on

Roger--Did you notice KWs last post on the Black Monday thread --could this be the case with AIR? ( If its already been covered apologies)

There is an argument for the company to buy its own stock back especially when its trading on such a ludicrously low PE. Going off the company's own implied guidance of $1,000m for the year we get 64cps after tax, PE 4.3. Borrow say $100m at 5% = $5m cost. Invest in 36m shares at $2.77 would generate $23m in after tax earnings boosting earnings for other shareholders by $18m. In my view the board is however fairly conservative and not really looking at this sort of financial engineering. Speaking with Tony Carter after the meeting he said they really put the forecast out there quite early which was quite a forthright position to take so early in the financial year, (his view), and I gathered that this was sort of in lieu of a share buy-back, (my inference nothing specifically mentioned to that effect).

Last time they used the share buy-back provision I believe the stock was trading under the NTA. Their thinking rightly or wrongly seems to be at present that they prefer to build the airline with new more efficient aircraft than buy the stock back unless its under NTA. At this stage I am happy with what they've done with getting the early indication of FY16 profitability out there for all to see. In the most unlikely event that we see a meaningful pullback in the SP I am happy to send a brief synopsis of my buy-back theory to the company along with supporting links showing this is good governance practice.

Winner69 -we could say govt plus insos plus roger hold 92% ....going on 93%

+ Couta1 = 94% LOL

[sb9]

+ Couta1 = 94% LOL

May be 95% due to his XXXL holding

[brend]

Speaking with Tony Carter after the meeting he said they really put the forecast out there quite early which was quite a forthright position to take so early in the financial year, (his view), and I gathered that this was sort of in lieu of a share buy-back, (my inference nothing specifically mentioned to that effect).

I agree with you -He said it does nothing more than send a signal to the market.

[gv1]

+ Couta1 = 94% LOL[/QUOTE]

[winner69]

Share buybacks are often motivated by senior management wanting to secure / increase bonuses. Shareholders generally not even considered.

Dot think Luxon and his team need that help at the moment ...making zillions already

[skid]

There is an argument for the company to buy its own stock back especially when its trading on such a ludicrously low PE. Going off the company's own implied guidance of $1,000m for the year we get 64cps after tax, PE 4.3. Borrow say $100m at 5% = $5m cost. Invest in 36m shares at $2.77 would generate $23m in after tax earnings boosting earnings for other shareholders by $18m. In my view the board is however fairly conservative and not really looking at this sort of financial engineering. Speaking with Tony Carter after the meeting he said they really put the forecast out there quite early which was quite a forthright position to take so early in the financial year, (his view), and I gathered that this was sort of in lieu of a share buy-back, (my inference nothing specifically mentioned to that effect).

Last time they used the share buy-back provision I believe the stock was trading under the NTA. Their thinking rightly or wrongly seems to be at present that they prefer to build the airline with new more efficient aircraft than buy the stock back unless its under NTA. At this stage I am happy with what they've done with getting the early indication of FY16 profitability out there for all to see. In the most unlikely event that we see a meaningful pullback in the SP I am happy to send a brief synopsis of my buy-back theory to the company along with supporting links showing this is good governance practice.


+ Couta1 = 94% LOL

It was the bringing forward of tax credits to boost earnings I was referring to--Is there a way to tell if this is happening?

[Beagle]

It was the bringing forward of tax credits to boost earnings I was referring to--Is there a way to tell if this is happening?

Financials look very clean and tidy to me after a fairly through review. The board are highly experienced, Tony Carter arguably the most respected Chairman in N.Z. Jan Dawson deputy chair won the coveted Institute of Chartered accountants accountant of the year award in 2011, is a fellow of the institute and other directors credentials are outlined in more detail on pages 50 and 51 of the annual report.
Chris Luxon is earning his stripes and will be regarded as one of N.Z.'s best ever CEO's in due course, (if not already).
You'd be hard pressed to find a better company or one better managed or governed. I have the upmost confidence in the board and management. Rob McDonald CFO is also very well respected in the profession.

[sb9]

OMG - Air is on the loser's board today

There we've it, back up 0.05c now. Might reach your 280 target I think.