QAN - Qantas Airways

[McLovin]

Im not discussing buying QAN, i am discussing Joyces management style.

If too much is out of his control, and what he can control isnt adding value, why is he employed?

Ed Zachery.

Borghetti was all smiles this morning.

 

[Julia]

Borghetti was all smiles this morning.

Extract from "The World Today" interview with Mr Borghetti:

PETER RYAN: But given what Qantas has been going through and the $2.8 billion loss announced yesterday, do you feel in any way that you dodged a bullet by missing out on the CEO job?

JOHN BORGHETTI: (Laughs) I'd love to answer that but I won't. Look, I think that Qantas is a great company. I mean it is.

It's a strong competitor, it has a great brand, you know, and all the rest of it and it has very good staff there. I'm very happy with my job. Having said that, I really do think that I've got the best aviation job in the country. I mean who wouldn't want my job?

 

[Smurf1976]

Smurf
Your response is typical
He is cleaning up a mess which has taken 10 yrs to create.
He's the henchman
Un popular but the ONLY ONE capable of making and implementing
The decisions required to survive and re grow.

Earning his money in my view.

As a general principle, you pay for something when it has been delivered or at least partly produced. You don't hand over all the money up front then hope that you'll eventually see something in return.

Joyce is being paid more than the CEO's of several other airlines combined and, whilst he may well be able to turn QAN around at some point, thus far he has not done so. There is cause to pay him a deposit certainly, but practical completion has not been achieved yet and there seems no reason to believe it to be imminent.

I have no problem with the concept of a CEO being paid a fortune if they actually do deliver what is promised. But thus far at least, Joyce hasn't actually delivered. Pay him well if/when he does, not before.

 

[tech/a]

Ok In the year 2009 price plummeted and that could be attributed to past management.
Then price has ranged approx. $1.50 to $3.00 ish.
Various softer decisions culminating in the decisions that HAD to be taken.
A lot of this is Write down of fleet value.

How can you control anything that is beyond your control??
Its not a get out clause its a fact of life.

So At $1.36 your not buying?

Ill go on record and say I would with a stop at $.99c
But would add at $1.42 and $1.52 and $1.92 at which time Id be chasing my stop to B/E (once$1.52 is reached)

AND---here we are.

 

[nulla nulla]

There is a cynical joke about running a successful small business.

Q. How do you run a successful small business?
A. Start with a successful large business.

Joyce, who has previously had success with small businesses like Airlingus and Jetstar is now in the process of reducing Qantas from a successful large business to a struggling small business. In my opinion both he and the chairman of the board should both go.

 

[tech/a]

So let me get this right.

This thread is about canning the CEO
Not about trading QAN

Time to leave.

 

[burglar]

So let me get this right.

This thread is about canning the CEO
Not about trading QAN

Time to leave.

Trading QAN requires a chart and 10,000 hours of education.

Investing in QAN requires a whole another thing.
(probably without the assistance of a chart)!!

 

[Smurf1976]

So let me get this right.

This thread is about canning the CEO
Not about trading QAN

In the context of a longer term investment in QAN, the performance of the company is highly relevant. And so far as the performance of any company is concerned, the CEO is at least a factor in that especially when you have a high profile CEO making at times controversial decisions and the company is struggling.

Ask a hundred random people to name a CEO of an Australian company and I'm pretty sure that Joyce / Qantas would be right up there as the names mentioned. In contrast, few would have a clue who the CEO of CBA or BHP is or what they've done recently. That this thread has tended to focus on QAN management is a reflection of that reality.

 

[piggybank]

Since the last post on this thread (2nd September) QAN as been gaining altitude to a level of $2.01 (today) an increase of 33%. It did go even higher during the day ($2.135) but hit some turbulence and fell back safely.

 

[piggybank]

Since the last post on this thread (2nd September) QAN as been gaining altitude to a level of $2.01 (today) an increase of 33%. It did go even higher during the day ($2.135) but hit some turbulence and fell back safely.

Actually I just noticed that Air New Zealand has done even better recently - having closed today 40% higher which started in mid October.

And people say you can't make money in the share market by just buying airline stocks

 

[piggybank]

Anyone want to buy a piece of engineering equipment? Given that the manufacturing sector is contracting by the day, some of this stuff will be hard to purchase in the future. You will need to hurry as it closes later this afternoon at 16.45.

http://www.graysonline.com/sale/501...25&mid=176885&em=davidclilly1958@yahoo.com.au

 

[Julia]

Actually I just noticed that Air New Zealand has done even better recently - having closed today 40% higher which started in mid October.

And people say you can't make money in the share market by just buying airline stocks

The airlines will be benefiting from the falling oil price.

 

[piggybank]

The airlines will be benefiting from the falling oil price.

And when the price goes up presume one goes short?

 

[piggybank]

Actually I just noticed that Air New Zealand has done even better recently - having closed today 40% higher which started in mid October.

Today it was announced that Air New Zealand has been named the Airline of the Year 2015 in the Airline Excellence Awards for the second year running. In the awards determined by AirlineRatings.com, Air New Zealand was chosen for its in-flight innovations, financial performance, operational safety and staff motivation.

“Quite simply Air New Zealand is an airline of first choice. And given the airline’s location and the country’s size, its performance is even more remarkable” said AirlineRatings.com editor Geoffrey Thomas.

If you want to read the remainder of the article, then you can do so by clicking on the link below:-

https://au.totaltravel.yahoo.com/in...r-new-zealand-named-2015-airline-of-the-year/

 

[piggybank]

Market Update released today - here it is:-

http://www.stocknessmonster.com/news-item?S=QAN&E=ASX&N=833571

The stock closed up just over 13% - $2.39

 

[johnpendles]

its great that the oil price has tanked, but doesn't Qantas still face the same problems it did before? The oil price is lower for everyone. Qantas still faces significant competitive pressures.

 

[skc]

its great that the oil price has tanked, but doesn't Qantas still face the same problems it did before? The oil price is lower for everyone. Qantas still faces significant competitive pressures.

Oil price is lower but it wasn't that big a deal. According to the annoucement it's only $30m or so. The turnaround in profit was $550m.

The biggest problem faced by QAN was the capacity war started by QAN, now ended by QAN.

 

[tech/a]

Ok In the year 2009 price plummeted and that could be attributed to past management.
Then price has ranged approx. $1.50 to $3.00 ish.
Various softer decisions culminating in the decisions that HAD to be taken.
A lot of this is Write down of fleet value.

How can you control anything that is beyond your control??
Its not a get out clause its a fact of life.

So At $1.36 your not buying?

Ill go on record and say I would with a stop at $.99c
But would add at $1.42 and $1.52 and $1.92 at which time Id be chasing my stop to B/E (once$1.52 is reached)

So three adds and a stop at B/E.
seems an OK trade to me?
Don't see anyone else who thinks this was a bargain---and I'm a techi
Id have thought you'd have been all over this (Fundies) Massive write downs--probably wont pay tax for years!

 

[skc]

So At $1.36 your not buying?

Ill go on record and say I would with a stop at $.99c
But would add at $1.42 and $1.52 and $1.92 at which time Id be chasing my stop to B/E (once$1.52 is reached)

So three adds and a stop at B/E.
seems an OK trade to me?
Don't see anyone else who thinks this was a bargain---and I'm a techi
Id have thought you'd have been all over this (Fundies) Massive write downs--probably wont pay tax for years!

Your post dated 29 Aug, before market open. Open price that day was $1.405. So according to your plan, here's how it worked out.

29 Aug - buy on open @ $1.405, stop @ 99c. Assume 2% risk => 482 shares for a $100k account.
29 Aug - add @ $1.42. Stop unknown. Assume same size => 482 shares
2 Sept - add @ $1.52. Stop moved to breakeven @ $1.405. Assume 2% risk with stop at $1.405. => 1739 shares.
29 Sept - stop hit @ $1.405.

So in total, the trade bought 482 @ $1.405 + 482 @ $1.42 + 1739 @ $1.52. Total 2703 shares @ $1.482

Trade P&L = -$207 less commission.

Feel free to adjust the volumes and you can arrive at different loss amounts.

 

[tech/a]

First trade is moved to B/E
Each trade is traded as an individual trade.
Ist trade only taken out at B/E
Other 2 trades still open.