AIR - Air NZ.

**Beagle** · 05-09-2016, 06:57 PM

Originally Posted by axe

surely management going to be buying using their big dividends???

Yeap that's the one, directors have been. Winner, front line staff got $2.500 each, a lot for a junior flight attendant on $40K so they're spreading the joy. Check out some of the salaries for other CEO's like Fonterra, Westpac $4-5m plus and surely nobody would try and say Fonterra are performing in a record manner ? If you don't pay top performers you don't retain them, simple as that really.

Anyway...moving along from social pay equity issues, its certainly very interesting times for shareholders. Not only are we right on the cusp of a record ever dividend and the fundamentals that we've discussed so thoroughly are so compelling, as is the ongoing dividend yield for that matter but now we have a further significant development today that hasn't been discussed before.

AIR appeared to break through the 100 day MA on the upside on 1 September so today is the third trading day (on huge volume) that confirms that new technical trend so the technical analysts amongst us may now also be starting to warm to the stock as well. Personally I love it when FA and TA line up and this at a time when one of my other favourite investment strategies, dividend stripping, is also playing itself out. Its all coming into alignment rather beautifully.

**Raz** · 05-09-2016, 07:19 PM

Originally Posted by Roger

Yeap that's the one, directors have been. Winner, front line staff got $2.500 each, a lot for a junior flight attendant on $40K so they're spreading the joy. Check out some of the salaries for other CEO's like Fonterra, Westpac $4-5m plus and surely nobody would try and say Fonterra are performing in a record manner ? If you don't pay top performers you don't retain them, simple as that really.

Anyway...moving along from social pay equity issues, its certainly very interesting times for shareholders. Not only are we right on the cusp of a record ever dividend and the fundamentals that we've discussed so thoroughly are so compelling, as is the ongoing dividend yield for that matter but now we have a further significant development today that hasn't been discussed before.

AIR appeared to break through the 100 day MA on the upside on 1 September so today is the third trading day (on huge volume) that confirms that new technical trend so the technical analysts amongst us may now also be starting to warm to the stock as well. Personally I love it when FA and TA line up and this at a time when one of my other favourite investment strategies, dividend stripping, is also playing itself out. Its all coming into alignment rather beautifully.

I will drink to all that, cheers :-)

**Gizzajob I can do that** · 05-09-2016, 07:21 PM

Originally Posted by see weed

Woops 25k now. couta, you must be 3 times happier than me

. What do ya think, late comers push price up another 5 or 10c before divy

.

couta1 is banned, probably for taking excessively large dividends and not taking BPs point of view

**Hectorplains** · 05-09-2016, 07:27 PM

Originally Posted by Roger

I have seen a big Australian study with heaps of empirical evidence that showed that in most cases shares recovered the dividend paid within a few weeks. Obviously with the size of the dividend this time one would expect it will take a bit longer. Thank you for posting previous experience with AIR which supports my contention that all other things being equal the SP is likely to recover the dividend in about twice as long as normal due to its substaintial size.

I don't know what the study is that you are referring to, Roger? The study outlined here ( https://www.tastytrade.com/tt/shows/...ork-03-18-2016) of nearly 6600+ dividend payouts on the S&P 500 from 1994 to 2016 shows that dividend stripping doesn't work as a strategy. If you think about it, if dividend stripping is such a robust profit maker - why isn't everyone doing it? It's not as if it's a difficult process to understand and enact. Dividend stripping of AIR might be profitable, or it might not. Place your chips, red or black?

**Beagle** · 05-09-2016, 07:32 PM

Had a quick look for a link for ya, no joy..will have a look later in the week when I am less tired if I remember. Average dividend yield on Aussie stocks much higher than in America and its even higher here. As mentioned previously the higher the yield the greater the chances of this being successful. I don't bet at the casino mate, green comes in too often for my liking

**Hectorplains** · 05-09-2016, 07:53 PM

Originally Posted by Roger

Had a quick look for a link for ya, no joy..will have a look later in the week when I am less tired if I remember. Average dividend yield on Aussie stocks much higher than in America and its even higher here. As mentioned previously the higher the yield the greater the chances of this being successful.

I don't see that a higher yield would equate to greater success with dividend stripping, how do you get that? I re-read your posts and could only see you said that, AIRS more substantial dividend would equate to longer sp recovery time ("twice as long as normal".)

**Baa_Baa** · 05-09-2016, 07:54 PM

Originally Posted by Roger

Australian study much closer to home. Average dividend yield on Aussie stocks much higher than in America and even higher here.

Roger, I think most will get the difference between Australasian vs US stocks, but naming the source of the Aus study which would be helpful to prove your point.

How about spelling out the strategy, not what dividend stripping is per se, but how you actually do it ...

For example, on the day of going ex-div, and the minute that divi payment is confirmed (cash in your bank), sell all your shares before everyone else has, then the SP declines by divi amount (maybe more which is even better), then buy back the original holding plus more with the dividend cash = way ahead of the game. And then if SP doesn't go lower and stays there, or better still recovers in the months following back to ex-div price = really nice capital gains. Or something like that?

**Beagle** · 05-09-2016, 07:58 PM

Originally Posted by Baa_Baa

Roger, I think most will get the difference between Australasian vs US stocks, but naming the source of the Aus study which would be helpful to prove your point.

How about spelling out the strategy, not what dividend stripping is per se, but how you actually do it ...

For example, on the day of going ex-div, and the minute that divi payment is confirmed (cash in your bank), sell all your shares before everyone else has, then the SP declines by divi amount (maybe more which is even better), then buy back the original holding plus more with the dividend cash = way ahead of the game. And then if SP doesn't go lower and stays there, or better still recovers in the months following back to ex-div price = really nice capital gains. Or something like that?

http://www.body-hacker.com/asx-dividend-stripping/

**Baa_Baa** · 05-09-2016, 08:31 PM

Originally Posted by Roger

http://www.body-hacker.com/asx-dividend-stripping/

Thanks, read it. You deleted your whole post and left a link to this, like it answers the simple question I put "how you actually do it". I get it, your tired, I'm tired, we're all tired ... tomorrow is another day. Cheers.