QAN Share holder Due Diligence
My friend pretend you are interested in buying the Qantas business.
Start by looking at its assets and liabilities.Look at the industry it is in and how it differentiates itself.Look at its management and gauge their competence.Determine the debt to equity ratio.Ask yourself if the business is competitive.Look at their fixed costs and how they are managed.Are they astute in the way they manage their revenue base?.Is the business capital intensive?What are their borrowing costs?What are the business future prospects.In short do a Warren Buffett evaluation.The information and data is available you just have to look.If you have invested in a company without some fundamental research then you are foolish with your money.Ask yourself why you hold shares in the business.Ask yourself if your money would provide a better return elewhere.
After you have completed your research I guarantee you will sell your shares tomorrow.If you dont then you have made the fatal investor mistake of having an emotional attachement to the business .
You will do your dough.
I've done my research and to me Qantas is worth a $1.75.With a declining market share and a mangement team who dont have a clue I have determined that my money is better being invested elsewhere.Even banks will give you 6.5%.
What return did you receive on your Qantas investment this financial year?
Have your shares grown in value?
If the answers to the last to questions are zero and no and you still hold shares after monday then you are a poor manager of your own funds
As for Macquarie all their research counted for nought with the GFC.If they are so good why didnt they see it coming?
They make mistakes all the time.The mistakes just arent big enough to bring their business down.
Give it awhile and Macquarie will change their evaluation of Qantas to underperform.Their research is thorough but generally slow for the longterm
Last edited by packrat; 3rd Jun 2011 at 12:22.