AIR - Air NZ.

[see weed]

And will stay that way for a while seeing as its going to shed a 35 cent divvy shortly. There's been a dichotomy between FA and TA indicators for quite some time now so nothing new there.

What some people seem to struggle to understand is that even if profit halved from FY17 projected $500m before tax AIR would even then only be trading on its 10 year average PE. Its actually pretty basic, the risks are more than compensated by the ultra low forward PE....bizarre that this simple facts seems to be lost on some people who seem to be on something of a personal crusade to point out the risks of airline investment.

Further to post #8163 paragraph 1, some extremely cunning people might even work out what their forthcoming dividend is going to be an reinvest that dividend before it goes ex, thereby getting an even bigger dividend and boosting one's gross sustainable forecast dividend yield beyond 17.2%. Such investors could be said to be extremely cunning dividend hounds

Disc: Currently sitting at 10% of my portfolio, will be reinvesting my forthcoming dividend before AIR goes ex divvy to compound my future expected returns.

Your last paragraph sounds like a good idea. And to add to that,they should start a new ruling, that you can only sell up to 20% of your holding within 4 weeks of ex div date. That might help stabilize sp. eg. If I buy 100,000 shares just to get the div., then I can only sell 20,000 within the next 4 weeks after ex div.

[Bobdn]

Very wise.
But what about as part of a balanced portfolio.
For instance if one held air,nzo,gne,fph,and a retirement village stock,banking .
If oil goes down air goes up and nzo goes down.
We are all going to use electricity-probably more if the population grows and electric cars become mandatory-at least in cities.
We are all going to age and many will be obese and require FPH patented CPAP innovations.
Banks in Australasia make high profits and are low risk

I take this approach. When oil goes up I'm happy for my BHP, GNE and ANZ shares. When it goes down I'm happy for my AIR shares. If I had to choose, I'm kind of hoping oil goes over $100 US a barrel. Sorry Air

[biker]

Getting up in the morning is risky,skiing at high speed is risky, fishing in rough seas is risky,a bit of high speed driving in a high horsepower car is risky, being overweight in Air is risky but i love all of these things and its risk that makes life more meaningful.

Now that makes perfect sense. What a great philosophy.

[King1212]

Getting up in the morning is risky,skiing at high speed is risky, fishing in rough seas is risky,a bit of high speed driving in a high horsepower car is risky, being overweight in Air is risky but i love all of these things and its risk that makes life more meaningful.

Even having sex is risky....pregnancy ..lol......welcome to the share market...

[skid]

Your last paragraph sounds like a good idea. And to add to that,they should start a new ruling, that you can only sell up to 20% of your holding within 4 weeks of ex div date. That might help stabilize sp. eg. If I buy 100,000 shares just to get the div., then I can only sell 20,000 within the next 4 weeks after ex div.

and they could impose a tax on all foreign owned airlines...but it aint gonna happen.
What we are all learning (including our friend who is addicted to risk) is that there is no free money,Divey or otherwise.--What goes out as a divey,reduces the value of the company and may well come off the share price(we'll see)--The PE ratio represents this sweet period AIR has just had--Earnings are the future--they will be dependent on how much of the market AIR will be able to hold onto (with its expensive,''premium airline''strategy--What is Joe public getting in return?)
This quandary is what (imo) we are seeing,being played out at this stage.
What is in store for the future--Will AIR revert back to the $1.30(3yrs back) or $1.70 (2 years back)
Or will it rocket back to the sweet days of not much competition and cheap oil.
Those of us that have gotten used to the ''pushing $3 days'' may be using that as a yard stick--Those who remember the $1.30 days may have a different outlook.
Some think that if you sit on any stock for a long time it will come right(inflation) and life has no meaning without (reckless?)risk....We all decide for ourselves

[Raz]

This is why Percy prefers having sex with himself......there's less risk and he's always "well positioned".

All I will say is I'm surprised by some of the personalities on here are actually keen on shares:-) Friday night here and about to take my chances on the pacific coast highway. Wish me luck or can I risk mange it.

[Beagle]

http://www.nzherald.co.nz/business/n...ectid=11700939

[winner69]

Qantas /AIR NZ agree on something - Welington runway extension

"Both Qantas and Air New Zealand opposed the project, along with the Board of Airline Representatives"

[skid]

http://www.nzherald.co.nz/business/n...ectid=11700939

With a warning..

Air New Zealand is warning of a sharp drop in underlying earnings in the current year as competition intensifies, after reporting a record profit for the past 12 months.

[winner69]

With a warning..

Air New Zealand is warning of a sharp drop in underlying earnings in the current year as competition intensifies, after reporting a record profit for the past 12 months.

So next year be less than phenomenal

Just bloody good