Forum Archive Index - January 2001

["Graeme Martin" <Martin.Graeme.S38@xtra.co.nz>]

Michael

 

Air New Zealand is one of those shares that does better when the New Zealand dollar rises, although I'm sure they would carry foreign exchange cover, probably about 6 months.  We have entered a phase where our dollar has increased from the dooms day pundit level of 39 cents US to the new level of 45.5.  This will lower their fuel bill, they weren't able to crank up flight prices because of internal competition where surprisingly most of their business is and presumably profit.

 

So AIRVA looks ok from an operational view with some cleaning up to be done in their new Aussi acquisition.  They appear to be doing the right thing.  If you bought for dividend return then do not sell in my opinion as the market has already taken into effect the earnings downgrading.  There isn't likely to be a capital gain in the short term.  Most advice I get says their should be a positive view on this stock.

 

Check it out.

 

Graeme Martin