AIR - Air NZ.

[Baa_Baa]

Fiction or facts, ROI illustrations over time, by necessity begin with choosing a year Zero, the starting point, which makes a big difference, though might depend on what outcome one wishes to illustrate.

[skid]

If you bought an average house in Auckland now you'd pay $900K and get $500 a week for rent. Assuming 48 weeks per year was paid, they didn't do any major damage, didn't start a meth lab in your house and actually paid the rent your looking at gross rent $24,000, less estimated expenses, rates, $3,000, Insurance $1,000, Repairs and Maintenance $2,000 and provision for deep cycle repairs and maintenance (repaint inside and out and new carpets, lino e.t.c. every 10 years, ($20,000 = $2,000 per annum = Net return before tax of $16,000, (say $10,720 after tax at 33%) or about 1.78% gross assuming you managed the property yourself, collected the rent e.t.c.e.t.c. You'd probably be buying very close to the top of the cycle.

On the other hand $900,000 invested in AIR would likely buy you 513,257 shares at $1.75 plus brokerage which would return you $102,651 in fully imputed dividends. You may be buying close to the bottom of the cycle.

Pop Quiz - Which sum would be easier for a retired person to live on ? Which alternative involves an awful lot of hard work and drama dealing with tenants and which one involves just doing nothing ?

Disc; I would never advise investing all ones retirement funds in one stock, just posting for the sake of pointing out what an interestingly stark comparison these two alternatives represent...and people say owning AIR is crazy !...I know which investment I think is crazy. That said we have done very well indeed out of Auckland property in terms of capital gain but that matters little to us now in our mid 50's going forward from here and you'd be a brave person to say Auckland property will keep going up ad infinitum.
I just want life to be easy now so yield is where its at for me so 20 cps annual dividends is highly attractive. Putting more "retired" into the phrase semi-retired is where it's at for me.

Could be right ..but..one has to wonder what neighborhood your buying in there Roger...and wouldnt it be more fair to compare with what has already happened instead of what you think will happen?--I dont know many people who have LOST approx 40% on a house (whoops..better deduct some of that last dividend from your total).....but.... I think houses are to expensive these days as well and probably wouldnt do it...but that doesnt mean Id be running out and buying hundreds of thousands of AIR shares either--(Ive seen first hand how that has gone for some. So for them ,they've got one hell of a deficit to make up.....hmmm..maybe houses arent so bad..

NAH...We cant have another GFC they've fixed all those things that were wrong with the economy, eh??

and if your shares halve in value ..thats ok cause others have probably halved as well...does that make you feel better when someone says your a chump for being in the share market at all at that stage?
Are you the kind of investor who will bail if things start looking ominous?
(with all that food ,my thoughts are getting a bit upset and bloated)

[winner69]

Fiction or facts, ROI illustrations over time, by necessity begin with choosing a year Zero, the starting point, which makes a big difference, though might depend on what outcome one wishes to illustrate.

Can't quite fathom what you saying ......but there are 17 (or even 86 if you take each combo) starting points on PT's table

And each starting date is the same each year - a time when previous year result been digested and ASM been held and most pretty up to speed to what the new year looks like ......seems reasonable

Interesting results - current green periods on way of turning blue and then orange methinks

Assuming PT numbers are correct

[couta1]

Can't quite fathom what you saying ......but there are 17 (or even 86 if you take each combo) starting points on PT's table

And each starting date is the same each year - a time when previous year result been digested and ASM been held and most pretty up to speed to what the new year looks like ......seems reasonable

Interesting results - current green periods on way of turning blue and then orange methinks

Assuming PT numbers are correct

Nah your wrong mate, that pretty table shows since 2013 orange is on the way out, the cat just likes orange because it matches his coat colour.

[RTM]

Does anyone know the date, even approximate, that AIR might report its interim result ? I can see that any dividend will be paid in March....but can't find anything about when the result was released to the market. Thanks in advance....RTM.

[couta1]

Does anyone know the date, even approximate, that AIR might report its interim result ? I can see that any dividend will be paid in March....but can't find anything about when the result was released to the market. Thanks in advance....RTM.

Near the end of Feb, last year was 25th Feb.

[RTM]

Thanks Couta....can't seem to find it on their flash investor site.
Probably not looking in the right place.

[winner69]

Near the end of Feb, last year was 25th Feb.

Yikes - that is so far far away

Something positive has to happen before then --- else the trend will continue

[OldGuy]

so, basically PT's chart shows that 2013-2016 were the strongest in history? Very interesting. Thanks for that.

[winner69]

RSI doesn't suggest AIR is oversold yet - assuming that I even know what I'm talking about