FLT - Flight Centre Travel Group

[ROE]

Re: FLT - Flight Centre

Can you spare me 500 shares ROE?



How will infrastructure spending help them? Domestic travel?

No idea but looking at FLT books unless they have a massive slow down in travel, their cash flow look very very healthy.

and cash flow dont lies ..... you can lies about assets and valuation but cash flow tell the truth about the state of a company.

 

[ROE]

Re: FLT - Flight Centre

Can you spare me 500 shares ROE?

Yeah at a rate of return of 6% PA interest
I'm in for a long hall ..I'm still very young I got 30-40 years to go this is my retirement dividend stream.

 

[ROE]

Re: FLT - Flight Centre

Maybe $5 but I will get my final parcel before that.

I think they have been way oversold, and they owe me $7.87

Yeah hit $5 and I buy another 5000 shares and speed up my average down journey and lock stock and come back in 30 years.

 

[nomore4s]

Re: FLT - Flight Centre

This stock is also on my income portfolio watchlist but I want to see at least some sort of support come in before I buy, getting an itchy trigger finger though

 

[oldblue]

Re: FLT - Flight Centre

This stock is also on my income portfolio watchlist but I want to see at least some sort of support come in before I buy, getting an itchy trigger finger though

That's my stance on this one too.

Cash flow doesn't lie - but that's last year's history. It's this year's business that counts now.

 

[prawn_86]

Re: FLT - Flight Centre

That's my stance on this one too.

Cash flow doesn't lie - but that's last year's history. It's this year's business that counts now.

Totally agree, but even a 30% cut in dividend is still 10% yield.

Even a 50% cut in both earnings and dividend would only put the PE at 10 and the div at 7%, so methinks a lot has already been factored in.

I know someone that works in a FLT store and they are still as busy as ever. The only shift they have noticed is towards more domestic travel. Im trying to source some figures from them for that specific store. IE - sales volums now compared to last yr, int v domestic etc etc i'll post them here if i can get them

 

[Rainmaker2000]

Re: FLT - Flight Centre

The way FLT is falling, you would think the global economy was a complete basket case 6 months from now......just when you think the last wave has come, another wave of negative data comes out of US.......

The funny thing about FLT is that current earnings don't even take into account the value of Liberty in US which they are taking turnaround losses on.....Liberty's still got to be worth a pretty penny and I'd stake a lot of money on FLT making Liberty a major player...and quickly....Management pedigree is just too good.....

I'm going to again do a stock take and recycle some capital from some great shares who by luck have gone up in last few months to buy some of these misunderstood puppies who people obviously think are tied to the global meltdown a little too closely........go FLT, you little cash flow machine

 

[resourceboom]

Re: FLT - Flight Centre

Hey prawn, that little bit of scuttlebutt would be great if you could post it.
I'm looking at buying in to this for solid income, but will probably wait a while yet.

 

[ROE]

Re: FLT - Flight Centre

I email FLT investor relation yesterday regards two things I need clarification in the annual report..nothing concerning just minor queries and if I got the right answer that re-enforce my conviction for this stock

1. Their investment portfolio sit at a couple hundred mil
2. TTV and the way they calculate commission.

 

[wonderrman]

Re: FLT - Flight Centre

This one I think is really the stand out in terms of value at the moment. Baby's truly been thrown out with the bath water here. At $7 I would be loading my portfolio up with it, have no idea where it is going from a chart stand point.

You've got to be prepared over the next year or two to see no revenue growth. They should just come out of the period stronger. Fantastic opportunity to acquire assets and further consolidate the industry.

Probably one of the cleanest balance sheets going around as well. Sweet yield and hopefully some great capital growth to come over the next 10 years.

This one really is a no brainer!

 

[gohawks]

Re: FLT - Flight Centre

Mmmmm grabbed some of these today to even out my average buy price. Perhaps not the greatest buy ever but I just couldn't resist at under $7!

 

[prawn_86]

Re: FLT - Flight Centre

I think any proce under $8 meets my long term hold criteria. I just dont have any spare cash, which turns out to be a blessing so far, as its just kept falling.

Im wary now, might have to wait for a higher low before i do buy...

 

[It's Snake Pliskin]

Re: FLT - Flight Centre

I think any proce under $8 meets my long term hold criteria. I just dont have any spare cash, which turns out to be a blessing so far, as its just kept falling.

Im wary now, might have to wait for a higher low before i do buy...

It could form a big base before any substantial continued rise eventuates. But I emphasise could not will. The bearishness on the chart is not compelling for any long trades. Each day seems to confirm the bearishness. As there is no substantial support I'll wait and watch.

Not advice and do your own research and learn your own method. I am commonly wrong.

 

[Rainmaker2000]

Re: FLT - Flight Centre

ROE, my read of their last annual report is they actually have a net debt, a larger one than they've had for a while.........but still tiny compared to most companies going around..........this debt is net of the investment portfolio....but not of the money for travel which they hold on trust and collect interest

Keep in mind, their latest downgrade included losses on equity investments which they inherited from the Liberty acquisition.........I'm still yet to understand the logic of the 'mum and pop' owners of liberty investing surplus cash in the stock market, as the growth avenues for Liberty appear large....for example, my understanding is that they weren't even on the internet yet!!

In fact, I'm yet to understand any of us investing in the stock market in the last year.......but I did, I do and will keep doing cause it makes a lot of sense ROE wise

 

[wonderrman]

Re: FLT - Flight Centre

ROE, my read of their last annual report is they actually have a net debt, a larger one than they've had for a while.........but still tiny compared to most companies going around...

Yes they do but it is not significant compared to cash. Current borrowings are $100m ('07: 48m) and long term borrowings of $60m ('07: $27m).

 

[sammy84]

Re: FLT - Flight Centre

Gotta agree with Snake. No point buying this stock till it forms some sort of base, otherwise its just catching falling daggers

 

[ROE]

Re: FLT - Flight Centre

ROE, my read of their last annual report is they actually have a net debt, a larger one than they've had for a while.........but still tiny compared to most companies going around..........this debt is net of the investment portfolio....but not of the money for travel which they hold on trust and collect interest

Keep in mind, their latest downgrade included losses on equity investments which they inherited from the Liberty acquisition.........I'm still yet to understand the logic of the 'mum and pop' owners of liberty investing surplus cash in the stock market, as the growth avenues for Liberty appear large....for example, my understanding is that they weren't even on the internet yet!!

In fact, I'm yet to understand any of us investing in the stock market in the last year.......but I did, I do and will keep doing cause it makes a lot of sense ROE wise

Their debt level doesn't concern me at all..they can get it out of the way with less than 1 year cash flow, that is rare species

I remember the day of Pepsi and KFC and when they spin it off with a massive amount of debt but their cash flow was so tremendous they got the debt all lock stock and out of the way in a few years...

FLT debt is pocket change and knowing Graham Turner he's a smart guy, he understand what burden of debt can do to you.

 

[ROE]

Re: FLT - Flight Centre

ROE, my read of their last annual report is they actually have a net debt, a larger one than they've had for a while.........but still tiny compared to most companies going around..........this debt is net of the investment portfolio....but not of the money for travel which they hold on trust and collect interest

Keep in mind, their latest downgrade included losses on equity investments which they inherited from the Liberty acquisition.........I'm still yet to understand the logic of the 'mum and pop' owners of liberty investing surplus cash in the stock market, as the growth avenues for Liberty appear large....for example, my understanding is that they weren't even on the internet yet!!

In fact, I'm yet to understand any of us investing in the stock market in the last year.......but I did, I do and will keep doing cause it makes a lot of sense ROE wise

Actually I do put my surplus cash in the stock market
you diversify your income stream and your investment.

as long as you allocate the capital sensibly you can becomes wealthy real fast...compounding is the 8th wonder .. my snowball has started

Warren Buffett is the master of doing that ... income stream from one business he invest in other business that generate similar return or better.

You don't have to invest in the same place where you earn your money

 

[ROE]

Re: FLT - Flight Centre

Gotta agree with Snake. No point buying this stock till it forms some sort of base, otherwise its just catching falling daggers

Unless you are a trader, most people dont look intraday or charts or don't have the mean and the time in the day to do it...I'm an investor and I like business it's not just a piece of paper to me it's something I try to understand and see the inner working of a business.

If the stock meet my price then I buy and I dont worry it about it for a while until I suspect it trading above what it can sustain then I sell out..mean while I collect dividends and as long as the company in good shape I hang on to it.

 

[Rainmaker2000]

Re: FLT - Flight Centre

Yeah, ROE, debt is certainly no concern.......just wanted to make the point they have debt cause they have traditionally been in cash surplus even disregarding the cash held on trust for travellers........

I was actually having a dig about why any of us put up with the stockmarket last year..........hehe, I still love the market but gees it keeps on fighting me (and any other investor with more than two shares).......