AIR - Air NZ.

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I've heard the same - what are people thinking at that price?

[Harvey Specter]

NOt intested at $1.60 having foolishly sold at $1.30. I have decided never to own an airline again after years of being in a hole.

Anyones brokers unable to supply? Will be interesting to see if ASB/Direct Broking etc get access for their mum and dad investors.

[Joshuatree]

At a two year high?.A one in five year performance (check this) practically no discount,Turnaround man leaving; the Govt selling(no sweetener there). Id rather watch the averaging down action in CNU!

[golden city]

i said it last month..they were push up shareprice for a good sell..price not attractive

[TimmyTP]

I don't entirely buy into the "avoid " airlines at all costs" philosophy, even though Warren Buffet is much smarter than me, but I made the decision to sell out at around 158c.

Three key reasons:
1. Declining standards. I travel to Asia and UK 5-6 times per year and Australia about the same, travelling AirNZ on almost every occasion over the last 5 years. Earlier this year, I travelled to the UK on Cathay and felt their planes were better and their staff just as helpful etc. AirNZ planes (especially on the Asia routes, can't comment re USA) are looking and feeling really tired. My latest trip to Europe was on Singapore airlines; $3K cheaper, more modern planes, lovely staff, on-line check-in.
2. Share price doubled in the 18 months I held. Of course that has limited bearing on whether today's price over/under values the company, but I couldn't see that much change in value over that time, particularly considering the risk associated with an airline.
3. General unease about the prospect of a sharemarket or global economy downturn and likelihood of a very left-leaning govt in NZ, meaning they are forced to fuel their planes with cabbages. My feeling is that AirNZ share price and dividend are likely to suffer significantly in the event of any of these.

As such, I think that the government has picked an excellent time to sell a good portion of its holding. This announced when the last bail-out happened, so really it was just a matter of timing.

Just one opinion of course and do note that the share price has risen since I sold - I don't tend to look back at the "what if", but you shouldn't take my word for that

[Shall0w]

NOt intested at $1.60 having foolishly sold at $1.30. I have decided never to own an airline again after years of being in a hole.

Anyones brokers unable to supply? Will be interesting to see if ASB/Direct Broking etc get access for their mum and dad investors.

ANZ aren't participating..

[Harvey Specter]

The only sale of govt assets that I think is okay as flying is largely discretionary whereas a supply of electricity is not.

But you have the choice of 5 large generators + some small fry and over 20 retailers.

[Harvey Specter]

The only sale of govt assets that I think is okay as flying is largely discretionary whereas a supply of electricity is not.

But you have the choice of 5 large generators + some small fry and over 20 retailers.

[modandm]

Good news for Air NZ investors! I expect the increased liquidity to make it a more attractive stock to institutional investors, which should support a more efficient pricing of the company's shares. Also removes an overhanging uncertainty.

I don't understand how anyone can come out and say its not an attractive price. The stock is very cheap on 8x forward PE in comparison to both other NZ stocks and airlines in an international context, while the airline has a much stronger competitive position than almost any airline you care to name. The company is extremely well capitalised, and easily funding transformational fleet growth over the next few years. Strong revenue growth expected, combined with favourable current FX rates, Fuel prices, and more efficient aircraft set the company up for very high profit growth (20-30%p.a) over the next few years. Yes there are risks to that scenario playing out - but I am monitoring these closely.

You will all know the confidence and conviction I have in the stock. And I'm looking for another great year from the company next year.

To any new shareholders - welcome, and look forward to your balanced contributions and thoughts.

[Joshuatree]

Thanks Modandm and timmy For your opposing opinions. Maybe Air NZ has a sweet spot ahead for a few years if so good luck to those who are in.