There's no way to sugar coat the fact that it is disconcerting to see such a wide range of senior executives including Chris Luxon treating their lucrative share incentive packages as nothing more than a mechanism to increase their already extremely generous salary. Not impressed especially seeing as one is selling at yesterday's depressed price.
Looking for Tony Carter to step up to the plate at $2.50 and show his support seeing as management seem to be lacking conviction.
In Sep 2014 tony bought 10,000 shares .......at $2.19
Has just over 100,000 I think .....suppose a reasonable 'commitment'
“ At the top of every bubble, everyone is convinced it's not yet a bubble.”
He's bought more since then mate. Somewhere around $2.50 if I remember correctly. Not a material size in comparison to what management have been selling though.
I assume the $1.5 mil was management?---Tonys got $246,000 by what you say.
Its just a shame Management had such bad timing on their selling. In doing such a good job on other things they have wreaked a bit of havoc.(a vulnerable time)
This may have been something arranged ahead ,which would make it a coincidence so Im not jumping to conclusions--If thats the case I guess its just bad luck--hopefully that is out of the way as more management selling would be pretty painful.
after rogers post I stand corrected on Tonys parcel..
It is a real shame they didn't renew the clause in the company's constitution which enabled a modest share buy-back, again I am going off memory here but there used to be a clause that enabled the company to buy back up to 3% of its issued shares and spend up to $60m doing so. I would have thought this would have been the ideal time for the company to be executing a modest buy-back programme seeing as the shares based on consensus forecast of 56 cps earnings are trading on the all time low PE of 4.3.
Dividend yield based on consensus average forecast for the next 3 years of 22.5 cps fully imputed is now a stunning 22.5 / 0.72 = 31.25 cps gross / 246 = 12.7% so its absolutely earnings accretive for remaining shareholders for the company to buy back some of its own shares using their billion dollar plus cash reserves, especially when they're earning maybe 1% on call account with those funds.
What is the point of buying new planes just so the company can have the newest and shiniest hardware on the tarmac when you can buy back your own shares on those stunning metrics and benefit all remaining shareholders ?
SP closed last Friday at $2.78. One week later and its down a whopping 11.5%. Just as well there was only four trading days eh ! Market suggesting a VAH sale will be easier said than done ?
I would suggest that 90% of those selling this week wouldn't have any logical reason for selling other than follow the leader, and with management taking the lead,you can see where the problem lies (It seems the fat cats are happy to lay on the porch getting fatter happy to watch the alley cats playing down below)
Do people not think the SP has simply got ahead of itself and now with higher levels of competition the ongoing profitability of Air NZ is in question. While I think all party's expect them to have a ripper fy16 it's the longer term outlook which is troubling. On a dcf basis the future is simply looking not as flash which helps explain the recent though rather dramatic pull back. Getting hung up on the yield of a particular stock is dangerous especially when dealing wig such a voloitile industry. Must confess I sold out of my entire Air holding following the schocker of an Ann from QAN 2 weeks ago.
We often talk on Sharetrader about risk,having too much of your portfolio in one share.
Yet the AIR executive has nearly all his risk in AIR.He is not only works there,but holds AIR shares as well.
Too many eggs in one basket.
Would make sense to sell down his "free" AIR shares and spread his risk.
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Originally Posted by Roger
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