Forum Archive Index - March 2001

["SWLEE" <SWLEE@xtra.co.nz>]

Deidre,
IMHO, with current tough environments facing AIRNZ and the rest of airline
industries ( Qantas has also suffered a share slide with their profit
warning today), the only factor that is underpinning AIRNZ  share price is
its dividend yield which has to be above the prevailing market interest rate
because of its inherent risk factor.

How low will AIRVA share go is therefore dependent on what its end of the
year dividend payout. They paid 4 CPS for the half year recently(which was
much greater than they earned for the same period) compared with the 6CPS
for the previous 6 months. Assuming that they will repeat the same payout of
4 cps for the next half year (if they can afford it!!) resulting a total of
8cps and lets say at 8% dividend yield, that translates into a $1 per share.
If 10 cps, $1.25 per share.

In reality, they just cant afford any dividend payout without barrowing more
money until they improve their bottom lines which would be sometime after
2002 financial year.

Stephen


----- Original Message -----
From: Deidre Gunn <deidre.gunn@clear.net.nz>
To: <sharechat@sharechat.co.nz>
Sent: Wednesday, March 28, 2001 5:13 PM
Subject: Re: Re: [sharechat] AIRVA


>
> Surely AIR NZ is a company that isn't afraid of a bit of "slash and burn"
to
> get their costs under control and integrate Ansett Aust. so they once
again
> run as an efficient airline. Sit tight for the ride I say.
>
> The question I have about them is, how low do you think they'll go and how
> long do you think it will take for share price to take-off?
>
> DG
>
>


----------------------------------------------------------------------------
http://www.sharechat.co.nz/          New Zealand's home for market investors
http://www.netbroker.co.nz/        Trade on Credit, Low Brokerage. Join now.
----------------------------------------------------------------------------
To remove yourself from this list, please use the form at
http://www.sharechat.co.nz/forum.shtml.