Forum Archive Index - January 2000

["tennyson@caverock.net.nz" <tennyson@caverock.net.nz>]

> Date:          Tue, 18 Jan 2000 15:41:38 +1300
> From:          "Richard Yelash" <richard.yelash@telecom.co.nz>
>
> Where do you see the fall in air nz shares stopping?  I realise the
> problems they are facing with Branson as competition, but the
> markdown seems extreme to me
> 
IMHO  Air NZ (particularly 'A' shares) is a yield stock, which has 
been hammered as much by rising interest rates as the Bransen threat. 
 Still on current market prices  the 'A' shares are yielding around 
7%- Try and get that on a term deposit with your bank!

Due to all the new aircraft being purchased, I guess we have seen the 
last of imputation credits from Air NZ for a while - but I still 
think that 7% return tax unpaid is good.

The only theoretical downside that I can see on the horizon is a 
possible cash issue to fund the purchase Ansett Australia.   But if 
there was such an issue for this purpose I think the market would 
take a positive view of the end result

So my guess is that Air NZ are near the bottom.
>
> Also to this question for those that are about to answer, is it best
> to buy A or B shares ie which do you think will bounce back quickest
> and strongest?
>
Since it is the 'B' shares which must change hands if some sort of 
deal is done with Singapore Airlines, my vote is for the biggest 
bounce back to be in the 'B' shares. SNOOPY


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