Taildragger67 said:
... my point is that they clearly did not do as good a job at convincing investors as their counterparts at carriers whose shareprice outperformed that of Qantas in the months before the APA bid.
You think those other carriers outperformed Qantas because the managers at those other carriers were more convincing than the Qantas managers? There are numerous other reasons why the other carriers may have outperformed Qantas.
You seem to think that Qantas can bring about adjustments to the share price by "appealling" to the share market. You seem to think that if there is a bit of a descrepancy between the company's and the share market's opinion of the value then a bit of talking to the investors will bring the two closer into line.
I think you will find that
events and
statutory disclosures have a much bigger bearing on the share price than any "appeals" or "investor briefings". The latter are attempts by the company to
persuade the investors, one way or the other, so are usually taken with a pinch of salt.
If you were about to buy a used car, would you allow your valuation of the car to be influenced by the appeals and statements of the dealer? Yes, but only to a very small extent. You would primarily be using performance measures, history, records, etc to form your valuation. The share market is no different to you in that respect.
About this statement from somebody else:
Geoff Dixon had failed to achieve what is it is that they get paid to do........ and that is maximise share value for the shareholders!!!
To that, I said "that is not Dixon's job".
To clarify that statement, I will say that, when somebody refers to "Dixon's job" they are referring to his CEO role - they cannot be referring to the job the board does.
Being in the "executive", his job is to "execute", that is, to perform the actual hands-on managing. If he does his job well the financial performance of the company will be good - which will in turn strongly influence the share price.
So, yes, the CEO performance may cause increases to the shareholder value - but it is not actually
his job to bring about those increases. The same can be said for pilots, engineers and flight attendants.
lowerlobe said:
Your right in that the share market makes up it's own mind but that valuation is created by PERCEPTION and INFORMATION........and who would have the ability or greatest impact on that perception and information delivery?
You are implying MJ, GD and co. have the greatest impact but that is not true. See my comments above re the used car.
......why then would they recommend to shareholders that they sell their shares for less than they (the board) believed they were worth.
Because the board knows that their opinion of the value is completely irrelevent - refer again to the used car example.