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27-03-2020, 05:14 PM
#16191
Interesting article from Bloomberg on which airlines might not survive and how long cash reserves may last. Annoyingly has left off Air NZ.
The Airlines Most in Danger of Going Under During the Crisis
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27-03-2020, 06:25 PM
#16192
Changes of a capital raising at 0.20c ?
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27-03-2020, 06:36 PM
#16193
Member
Originally Posted by Beagle
I have a theory that at that moment in time Labour did not want to be seen as propping up big business unless it was on arms length commercial terms. Since then they seem to have had a rethink and propping up any business that keeps people employed is seen as being politically correct.
I think your wrong there mate! Propping up businesses that keep the economy running more like. In essence buying time to allow us to knock the bastard off and still have businesses to function afterwards.
I'm interested to know what you think is a better option? Let them all go belly up?
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27-03-2020, 07:34 PM
#16194
Originally Posted by thedrunkfish
I think your wrong there mate! Propping up businesses that keep the economy running more like. In essence buying time to allow us to knock the bastard off and still have businesses to function afterwards.
I'm interested to know what you think is a better option? Let them all go belly up?
The support would have been exactly that if it was on normal commercial terms that AIR borrow at, their external loans range from 1.0 - 3.0%. Unwittingly or otherwise, AIR is on a direct flight path to what will ostensibly amount to nationalisation.
Ecclesiastes 11:2: “Divide your portion to seven, or even to eight, for you do not know what misfortune may occur on the earth.”
Ben Graham - In the short run the market is a voting machine but in the long run the market is a weighing machine
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27-03-2020, 07:43 PM
#16195
Originally Posted by Beagle
Temasek is Singapore Super Fund isn't it? so its comin from the guvmint.
Edit Answer the questions
Yes it was started in '74 to manage Singapore's assets and is solely owned by the Minister of Finance (Singapore). Operates on a commercial basis and the a majority shareholder in SIA.
(So its a very similar situation in a way to us really !)
Last edited by peat; 27-03-2020 at 07:52 PM.
For clarity, nothing I say is advice....
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27-03-2020, 08:24 PM
#16196
Originally Posted by Beagle
The support would have been exactly that if it was on normal commercial terms that AIR borrow at, their external loans range from 1.0 - 3.0%. Unwittingly or otherwise, AIR is on a direct flight path to what will ostensibly amount to nationalisation.
Perhaps. But a privately owned airline, facing the virtual shutdown of its operations for an extended time, would fold and go out of business in these circumstances. I'm no fan of nationalisation but a national airline is essential for NZ's economy in 2020.
Disc: I don't invest in airlines.
Last edited by macduffy; 27-03-2020 at 08:26 PM.
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27-03-2020, 08:26 PM
#16197
A lot of people in the general public have been loading up on these.. flavour of the month
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27-03-2020, 08:46 PM
#16198
Originally Posted by Cadalac123
A lot of people in the general public have been loading up on these.. flavour of the month
Do you know for a fact that “a lot of people in the general public” who have been “loading up” on this? Or just an opinion? I reckon they’re mugs if they have and going to be lambs to the slaughter soon enough.
AIR is in big trouble, soothing the cashflow for the meantime, with a modest government injection will lasting a few weeks is one thing, but the balance sheet damage will be long lasting.
I’m with Beagle on this one, it’s a train wreck, sadly through no fault of its own except maybe not moving quickly enough to quarterise the damage. Whole business is basically shutting down!
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27-03-2020, 08:53 PM
#16199
Member
Originally Posted by Baa_Baa
Do you know for a fact that “a lot of people in the general public” who have been “loading up” on this? Or just an opinion? I reckon they’re mugs if they have and going to be lambs to the slaughter soon enough.
AIR is in big trouble, soothing the cashflow for the meantime, with a modest government injection will lasting a few weeks is one thing, but the balance sheet damage will be long lasting.
I’m with Beagle on this one, it’s a train wreck, sadly through no fault of its own except maybe not moving quickly enough to quarterise the damage. Whole business is basically shutting down!
A lot of the millennial Sharesies brigade I know have been buying in.
There is a genuine belief that any share/stock at a discount to it's recent performance is a "good buy".
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27-03-2020, 09:17 PM
#16200
Originally Posted by samjaynz
A lot of the millennial Sharesies brigade I know have been buying in.
There is a genuine belief that any share/stock at a discount to it's recent performance is a "good buy".
I just wish there was an easy and direct way to short the Sharesies customer database.
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Never try to teach a pig to sing. It wastes your time and annoys the pig.
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