Originally Posted by
43Inches
Yes, but its apples and oranges, Rex is in a rapid expansion phase, most would have a breakeven mark at two years plus with extremely steep startup costs in the first two years, I wont even add in Covid. ...
Well, Rex's now halfway through that two year rapid expansion phase. How are they doing?
Originally Posted by
43Inches
Rex could probably drop a share float tomorrow and pick up 100mil in cash flow if it wanted to, ...
You cannot possibly believe that. Rex essentially doubled its issued shares with the PAG deal. There is no way possible that they could issue another $100 million in shares. That's just rank nonsense.
Originally Posted by
43Inches
... There is a vast difference to floating shares for expansion or for life support and the market will respond accordingly.
Well, we saw exactly how the market responded to Qantas's share placement "for life support" in late 2020. $1.36 billion raised from the institutional placement and the shares are currently trading at a 35 percent premium to the issue price.
Originally Posted by
43Inches
... Comparing share value, Rex each share has a net tangible value of +$1.28 per share, where Qantas the tangible value has gone further negative to -0.35cents. That last bit really shows how bad QFs debt position is, the company has no tangible value if you broke it up.
Now you're getting close to what Qantas's short-term problem is - I'm surprised no analyst has commented on it yet. That said, that "market" you were quoting earlier values their shares just north of $5 a pop. That is how the market views their recovery and future earnings potential. Through the pandemic Qantas's FF program alone generated four times the revenue and eight times the profit that Rex could manage in a very good year. But if you want to go long on Rex, I doubt anyone will look to get in your way.