AIR - Air NZ.

[stoploss]

Quote Roger "I am disappointed with managements systematic selling down of shares and I find the timing of this a little disconcerting. Management would have known last week when they were selling that there was an investor day this week wherein they were going to downgrade FY17 earnings. Sailing pretty close to the wind in terms of the insider trading rules there by my reckoning."

You thinking of having a word with the shareholders association and AIR NZ Directors/Management a la SUM ?
I would have thought AIR.NZ would have had more robust policies in place anyway , especially compared to SUM.

[Beagle]

Quote Roger "I am disappointed with managements systematic selling down of shares and I find the timing of this a little disconcerting. Management would have known last week when they were selling that there was an investor day this week wherein they were going to downgrade FY17 earnings. Sailing pretty close to the wind in terms of the insider trading rules there by my reckoning."

You thinking of having a word with the shareholders association and AIR NZ Directors/Management a la SUM ?
I would have thought AIR.NZ would have had more robust policies in place anyway , especially compared to SUM.

Its not quite as blatant as the SUM transgression but it seems to me to be pretty disappointing conduct...what do you other folks think ?

[forest]

I fully agree with your last 2 post and like the detail you give in post no 6041

[workingdad]

Some high volume this afternoon and SP held up well.

Another great post Roger. I think its pretty spot on and with VAH being treated as fair value on profit/loss AIR will be taking a hit on full year results if they haven't sold them off.

[Raz]

Its not quite as blatant as the SUM transgression but it seems to me to be pretty disappointing conduct...what do you other folks think ?

Well i pondered at the weekend how the executives would be thinking how to spend the proceeds of their shares and if I had done the same thing, similar context, three years ago when i was an executive in the US, rightly or wrongly, yes I would have the money yet be expecting a SEC probe. After this weeks disclosures just makes it worse.

[Beagle]

Agree with what you've said Raz. FMA are a completely different kettle of fish though in my experience. I have given this a bit of thought this afternoon and suspect if I did go to the considerable trouble to formulate a complaint that AIR management would get away with their conduct on a technicality. Thing is, (notwithstanding the market perception for earnings in FY17 by consensus analyst view being ostensibly the same as FY16 earnings), formal guidance for FY17 by AIR management themselves had not been formally issued before so technically one can't say it was a downgrade per se.

It was inconsistent with market expectations YES but didn't amount to a formal downgrade of previously issued company guidance...i.e. this was first formal AIR management guidance for FY17. In my view they would have been in clear breech of insider trading laws if previously issued company FY16 guidance of $800m+ before tax was downgraded.

I might yet find the time to take this matter up with Tony Carter either before or at the next annual meeting as I am sure the board want to encourage management to be seen to be conducting themselves with the upmost integrity at all times. Classic case of some older wisdom required to be dispensed by the Chairman here in my opinion.

[stoploss]

Surprisingly bit muted response today from our biggest AIR supporter, Roger....

And in the meantime more staff sales...
https://nzx.com/companies/AIR/announcements/281736

Not a good sale price ........

[Poet]

"formal guidance for FY17 by AIR management themselves had not been formally issued before so technically one can't say it was a downgrade per se"

That's true in a strict sense Roger, but nevertheless presumably the management knew at least a week ago that they were going to inform the market in this week's investor briefing that next year's earnings would be below this year's earnings. So on the face of it, at the time they were dumping the free shares that we gave them for doing such a good job of looking after our interests, they were in possession of relevant insider information that had not yet been released to the market (that information could have been released a week ago, prior to their selling spree, but if they had done that maybe they wouldn't have got as much for those shares)

[Balance]

Well i pondered at the weekend how the executives would be thinking how to spend the proceeds of their shares and if I had done the same thing, similar context, three years ago when i was an executive in the US, rightly or wrongly, yes I would have the money yet be expecting a SEC probe. After this weeks disclosures just makes it worse.

The assumption that all the executives who sold are privy to all the numbers - normally that is not the case, just the CEO, CFO and directors.

AIR did release the presentation as Price Sensitive.

Agree however not a good look.

[winner69]

.......

I remain of the view that this conduct is extremely disappointing and I would have expected better standards of behaviour from senior AIR management.

Are you really surprised?

Too much money invariably changes peoples standards .......