AIR - Air NZ.

[sb9]

Financials look very clean and tidy to me.

Concur with you, doubt if company like AIR would adopt any dubious accounting practices.

[Beagle]

Consumer confidence improving nicely
http://www.sharechat.co.nz/article/e...rest-rateshtml

[winner69]

Consumer confidence improving nicely
http://www.sharechat.co.nz/article/e...rest-rateshtml

You were always too down and out on the NZ economy

Nothing's changed - economy still purring along nicely ...maybe even 3% GDP growth early next year. None of your recession stuff.

[winner69]

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.

Financials so clean I won't even bother run Beneish M-score over them

And yes, Luxon's halo is sure shining bright at the moment

[Beagle]

You were always too down and out on the NZ economy

Nothing's changed - economy still purring along nicely ...maybe even 3% GDP growth early next year. None of your recession stuff.

Nothing like cheap money to stimulate things along nicely is there mate as well as record new migrants, (60,000 from memory) ! Can borrow for 2 years fixed at 4.39%...been a bean counter for a very long time and can't remember the last time I saw that, maybe never seen it before in my lifetime ? We now have FL280...FL290 next week and FL300 by end of the month eh. Keep steadily gaining altitude after that too. Strap yourself in for the best long haul flight experience of your life mate.

[vin]

$2.795.. Pushing it!

[winner69]

Nothing like cheap money to stimulate things along nicely is there mate as well as record new migrants, (60,000 from memory) ! Can borrow for 2 years fixed at 4.39%...been a bean counter for a very long time and can't remember the last time I saw that, maybe never seen it before in my lifetime ? We now have FL280...FL290 next week and FL300 by end of the month eh

Talkin of migrants I believe there are several thousand kiwis in Australia detention centres waiting to come home

Hope they not put on that aussie airline, after all coming back to their homeland

[sb9]

Talkin of migrants I believe there are several thousand kiwis in Australia detention centres waiting to come home

Hope they not put on that aussie airline, after all coming back to their homeland

Classic, love it.

BTW, smashed thro 282 now next stop 300?

[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?

[winner69]

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?

Read Note 3 of the Annual Financial Statements

Key points-

1) AIR tax for year slightly more than corporate rate of 28%

2) Minimal movements in deferred tax accounts which one might expect

3) AIR don't have any tax losses carried forward to do anything with

My conclusion - all kosha as they say