Forum Archive Index - November 2000

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

>
> Hey Snoopy, you wanna job??  
>
Back to the day job next week I fear!
>
>You didnt fly up to Akl to do FFS this arvo did ya?
>
Funnily enough, Dogter Deane didn't offer to pay my fare.
Perhaps he didn't want me to pick a bone with him?
> 
> Thanks for another great rundown.
> 
No prob, Warner.

And Hugh, you must be feeling pretty smart selling out at $3.40 (how 
many years ago was that!)

I have read the Buffet stance on airlines.   But remember Buffet 
lives in the US and the US market seems to have different standards.

Would I buy an airline on a P/E of 30?  No way!
A P/E of 10.   That starts to look interesting.
A P/E of 6?   Must give it serious consideration.

Maybe Buffet wouldn't buy at any of those levels.  But what about if 
the AirNZ price collapsed to $1, or 50c or 20c?   Surely at some 
point (company debt worries aside) it must get cheap enough for even 
Buffet to get interested.

Personally I can't imagine $1.20, but then a month ago I thought the 
same about $1.50!

Maybe the real reason that Buffet steers away from Airline shares is 
that the business is notoriously cyclical and we know that Buffet 
doesn't like to sell -ever!  SNOOPY






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