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Old 3rd Sep 2022, 12:33
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dr dre
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Originally Posted by gordonfvckingramsay View Post
This will be an interesting view, hopefully it will hasten the end
Probably not:

Since reporting annual results last Thursday, the stock has gained nearly 16%. With an enterprise value set at 4.1 times its forecast earnings before interest, tax, depreciation and amortization over the coming 12 months, Qantas is now sitting on a higher multiple than the average 3.6 times in the 10 years before Covid-19 struck.Those who bought close to the bottom at the end of March 2020 have enjoyed a 65% capital gain, and last week were given a A$400 million share buyback, too. If the uptake of apology vouchers is much below 60%, Qantas will end up giving a bigger thank you to equity investors than passengers.

This is only to be expected. Customers hate businesses with excessive market share, knowing how little choice they have to seek alternatives. For the same reasons, shareholders love them. So long as that situation prevails, Joyce’s job will be safe.

Passengers Hate Qantas. Shareholders Aren’t Bothered

I wouldn’t expect any changes as a result of Monday night’s program. Despite all the negative press the company has copped in the last months the share price has matched the ASX 200, and then taken off with a 16% increase since results day. Some analysts see the share price hitting $6.80, a 30% increase.

Investors were happy with the FY results, the board won’t budge unless the investors aren’t happy, so no changes of CEO anytime soon.

Another article highlighting the strong performance of the company and the relatively rosy outlook:

Why did the Qantas share price rocket 17% in August?

Last edited by dr dre; 3rd Sep 2022 at 12:54.
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