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Old 14th May 2007 | 14:35
  #9 (permalink)  
Chilli Monster
 
Joined: Oct 1999
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Mike - I don't think we differ that much, just in how we present it.

The aircraft share is worth the market value - agreed? (judging by your posting I'm guessing yes).

Now - if there's money in the engine fund then the share is still only worth the market value - there is no premium to add on to the price for that money. (which your post suggests there is).

However - if there is no money in an engine fund that aircraft (and proportionally the share) is worth LESS than market value by that amount, and if I were buying I would offer accordingly.

Your post suggests that money in the bank is worth a premium on the share price at market value. (Forgive me if I read it wrong). My attitude is I don't care what's in the bank - aircraft depreciate, they have a market value, that's all I'm paying - I'm not buying a chunk of engine fund, that comes with the aircraft.

Hope that's slightly more clear.

Last edited by Chilli Monster; 14th May 2007 at 15:17.
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