Auckland International Airport Limited (AIA)

[BlackPeter]

And Auckland Council decided to pass - getting diluted to 18% and missing on any upside of the placement shares.

Who knows, they just might have been clever (or lucky?). I could well imagine scenarios over the next 12 months which will push the SP lower.

Discl: got an offer to participate in the bidding but decided not to. Pretty sure there will be better opportunities later on in the game.

[Cadalac123]

A think there are a lot of long term holders who just want to secure a position and not look at the stock for 3-4 years and they’ll net from it I’m sure

But during the current circumstances I imagine there’s further risk with horrible half year and full reports but I guess there’s a risk in waiting for and hoping those downramp the stock price too and whether they are “priced in”, and wil institutes just manipulate the price above this one OR will they intentionally buy now and sell later to net huge gains from the long term holders who panic at the next dip

Disc not a holder

[Balance]

And Auckland Council decided to pass - getting diluted to 18% and missing on any upside of the placement shares.

Sad.

Why Auckland Council should get out of the rest of its AIA shares.

Monkeys like them only know how to count peanuts and suck on bananas.

[Snoopy]

And Auckland Council decided to pass - getting diluted to 18% and missing on any upside of the placement shares.

I think Auckland Council had no choice. Uncle Phil is on record as saying they are right at the top of their debt limits.

SNOOPY

[Arthur]

My back of the envelope shows AIA on a PE of around 30 in three years time. I think I'll play in another sandpit.

[trader_jackson]

double post

[trader_jackson]

My back of the envelope shows AIA on a PE of around 30 in three years time. I think I'll play in another sandpit.

Cheap as chips for an infrastructure stock... for example, I think the sector average PE in the power sector for FY21 is 34, and I'd back AIA to grow earnings over the long run significantly more than any power company listed on the NZX.

[macduffy]

My back of the envelope shows AIA on a PE of around 30 in three years time. I think I'll play in another sandpit.

I'd like to borrow your envelope, Arthur. The one I use can't tell me where things will be in a month's time, let alone 3 years hence!

[BlackPeter]

Cheap as chips for an infrastructure stock... for example, I think the sector average PE in the power sector for FY21 is 34, and I'd back AIA to grow earnings over the long run significantly more than any power company listed on the NZX.

Well, its quite risky infrastructure - isn't it? Power companies are expensive because they make reliably money come rain, snow or sunshine. And sure - for AIA it used to look like they could as well just grow into one direction.

However - we just learned that AIA might have a quite fickle earnings profile - i.e. it clearly deserves a lower PE than reliable money makers.

[BlackPeter]

... and there is another crisis which might bite AIA. From memory their only runway is quite close to the sea. Does anybody know how much above sea level this runway is? Allow a bit more global warming and it might be unusable. If it survives the next 3 decades (which is in my view not a given), than at a PE of 30 investors might just get their capital back - without any interest.