AIR - Air NZ.

[Beagle]

Yes mate...expect truck loads, (should that be plane loads ?), more restructuring costs at VAH driving their full year statutory results deep into the red. Good AIR don't have to consolidate those results but might we see some write down in the value of their stake in VAH in their forthcoming accounts...that being an extraordinary item so doesn't affect underlying profit so again we're all good.
Not to worry though because Mr market is already saying that AIR shares in, and loan advanced to VAH, is close to worthless. Any clean extrication from this mess will no doubt be very warmly welcomed by the market.

[couta1]

Hey couts - talking of animals i wonder what the rats and mice shareholders are doing at the moment?

Last time I made comments regarding rats and mice shareholders, I copped a one month ban so I'll stick to the Sheep Mate.

[winner69]

Last time I made comments regarding rats and mice shareholders, I copped a one month ban so I'll stick to the Sheep Mate.

Sorry mate

Should have said the small mum and dad retail investors like my neighbour Mike (and a lot of his mates down at the bowling club)

they are in a real tiz at the moment

They been sucked in with the hype that as term deposits aren't worth much they need to invest in high yield stocks.

He got a good divie out of HLG but lost 40 cents a share in the process when he cut his losses. mike and others then piled into AIR and but are really worried at the moment.

Silly buggers - my advice to them is if they don't understand what they doing stick to term deposits.

[winner69]

Anyone notice that VAH announced a third quarter loss today and expectations of a profit for the year which at mid point of $45m implies a loss in Q4 too ? (Roger)

Poor Virgin

Underlying profit - Q1 8m profit Q2 $73m profit Q3 19m loss and Q4 likely 33m loss

Seems to be going the wrong way

[Beagle]

Anyone notice that VAH announced a third quarter loss today and expectations of a profit for the year which at mid point of $45m implies a loss in Q4 too ? (Roger)

Poor Virgin

Underlying profit - Q1 8m profit Q2 $73m profit Q3 19m loss and Q4 likely 33m loss

Seems to be going the wrong way

The way VAH are retrenching ATR aircraft leases gives an insight into just how bad some parts of Australia have been hit by the mining downturn. The shocking statutory loss this third quarter includes restructuring costs extricating themselves from surplus leases. Reported loss $18.6m statutory loss $58.8m. Just as well the dairy downturn doesn't seem to be affecting AIR at all eh and just as well AIR doesn't have to consolidate its share of that loss anymore given C.L.'s board resignation. FAR more robust picture of domestic demand in N.Z. thank goodness.
AIR's management have absolutely made the right call to review their stake in Virgin. Borgatti must go and by resigning accept the ultimate responsibility for mismanagement of VAH. C.L. is bang on the money with his call for him to fall on his sword IMO.

[Baa_Baa]

WD that 100K was an off market sale so had no effect on market, so didn't mop up any buyers

Who bought them then, if they weren't a buyer?

[Baa_Baa]

Going back up on volume. So are the buyers 'smart money' or the sellers 'smart money' today?

What do you think Balance? Smart buyers or smart sellers? Unusual not to have a viewpoint.

[Baa_Baa]

Anyone notice that VAH announced a third quarter loss today and expectations of a profit for the year which at mid point of $45m implies a loss in Q4 too ?
Can't help wondering who knew late last week that VAH's shocking Q3 result and outlook announcement was coming...surely there's no leaks in the investment banking team at First N.Z assisting AIR with their disposal of the VAH stake ?
Looks to me like insiders were selling last week which paints a dim view of management selling doesn't it ! Maybe the market isn't quite so irrational after all. If VAH can't make money in the current low oil price environment then what's AIR's stake worth and is that 12 month short term loan they made even recoverable ?

Just as well with C.L.'s resignation from the board AIR don't have to consolidate VAH's financial's anymore. Very pleased AIR won't be supporting Ansett Mk2 anymore, opps sorry meant Virgin Australia

As the clouds gather and the winter of VAH sets in, what is the poosibility AIR can't find a buyer and get stuck with this piglet for the long term? Like a drogue slowing the dreamliner.

[Baa_Baa]

Yes mate...expect truck loads, (should that be plane loads ?), more restructuring costs at VAH driving their full year statutory results deep into the red. Good AIR don't have to consolidate those results but might we see some write down in the value of their stake in VAH in their forthcoming accounts...that being an extraordinary item so doesn't affect underlying profit so again we're all good.
Not to worry though because Mr market is already saying that AIR shares in, and loan advanced to VAH, is close to worthless. Any clean extrication from this mess will no doubt be very warmly welcomed by the market.

This assumes AIR want to sell it and that there is a buyer who actually buys it. No evidence that points strongly to either of those scenarios, only speculation here.

[Balance]

What do you think Balance? Smart buyers or smart sellers? Unusual not to have a viewpoint.

Sellers today are the smart ones as they bought off those who were 'smart' to sell down to $2.45 last week?

Air NZ has been a lovely trading stock and imo, will continue to be for a while yet.