QF shares hit $2.00, discuss
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While the very sad close reflects a less than shining day on ASX and other markets the Q price again showed a disproportionate loss by comparison to other benchmark stocks.
The Board stack announcement with the French Connection & Joyce's spruiking about a further 100m cut and the canx of the a/c just did not inspire the market who largely have deomonstrated that they believe the CEO and the Board is on the nose. The trade in the QF shares and the risk rating by brokers is yet again proof that under Clifford & Co and their little puppet QF is only a viable watch for the stock flippers (those who buy at crisis and flip within a 4-5% margin).
Of note is the fact that the a/c canx centres on the much proclaimed 738's which the need for them lessened with the overnight re-birthing of the previousy NZ reg'd and operated five 737's.
The canx a/c and cuts which are within red tailed business, also confirms the increased capacity for the orange cancer - note that while jobs are being axed from mainline CC ranks (VR still equals axing jobs) JQ is ramping up its recruitment.
- QF is again being lined up for another squeeze it seems.
It is such a shame that the Orange Emperor who is always so quick to abuse the staff, pilots and engineers with cliches and kamakaze references does not embrace other Japanese conventions for failed leaders.
AT
The Board stack announcement with the French Connection & Joyce's spruiking about a further 100m cut and the canx of the a/c just did not inspire the market who largely have deomonstrated that they believe the CEO and the Board is on the nose. The trade in the QF shares and the risk rating by brokers is yet again proof that under Clifford & Co and their little puppet QF is only a viable watch for the stock flippers (those who buy at crisis and flip within a 4-5% margin).
Of note is the fact that the a/c canx centres on the much proclaimed 738's which the need for them lessened with the overnight re-birthing of the previousy NZ reg'd and operated five 737's.
The canx a/c and cuts which are within red tailed business, also confirms the increased capacity for the orange cancer - note that while jobs are being axed from mainline CC ranks (VR still equals axing jobs) JQ is ramping up its recruitment.
- QF is again being lined up for another squeeze it seems.
It is such a shame that the Orange Emperor who is always so quick to abuse the staff, pilots and engineers with cliches and kamakaze references does not embrace other Japanese conventions for failed leaders.
AT
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complain about low share prices? how many of you complained when the share price was at an all time high 
remember what happened back then? o yes, it was the sale to the Texas Pacific Group - any one here really want that to happen again?
remember what happened back then? o yes, it was the sale to the Texas Pacific Group - any one here really want that to happen again?
According to Commsec the share price closed at $1.81 today for a Market Capital of $4.1 B but, the "Book Value" per share was $2.62.
With a margin like this, a canny takeover asset-stripper company could make quiet a small fortune.
The lower the share price goes the better the margin and profit for such a takeover event...
To find out who benefits most from such a strategy of pushing the share price down, they say you should always follow the money trail.
Watch those who are still friends of Suzie...
Edited to show $4.1 B instead of $4.1 M as pointed out by Icarus...Thanks.
With a margin like this, a canny takeover asset-stripper company could make quiet a small fortune.
The lower the share price goes the better the margin and profit for such a takeover event...
To find out who benefits most from such a strategy of pushing the share price down, they say you should always follow the money trail.
Watch those who are still friends of Suzie...
Edited to show $4.1 B instead of $4.1 M as pointed out by Icarus...Thanks.
Last edited by FlexibleResponse; 17th Jun 2011 at 15:48.
Flexible Response.
The "Book Value" of $2.62 per share you refer was current at 30/06/10. We do not know the current book value or the contingent liabilities.
There are some very interesting financial statistics for QF which applied as at 30/06/10.
Total Current Assets $5,832,000,000. Total Current Liabilities $6,241,100,000
Return on Capital 3.0% (Pre Joyce 30/06/08 10.0%)
Return on Equity 2.9% (Pre Joyce 30/06/08 13.0%)
Net profit $112,000,000 (Pre Joyce 30/06/08 $969,000,000)
Net profit margin 1.2% (Pre Joyce 30/06/08 4.7%)
The "Book Value" of $2.62 per share you refer was current at 30/06/10. We do not know the current book value or the contingent liabilities.
There are some very interesting financial statistics for QF which applied as at 30/06/10.
Total Current Assets $5,832,000,000. Total Current Liabilities $6,241,100,000
Return on Capital 3.0% (Pre Joyce 30/06/08 10.0%)
Return on Equity 2.9% (Pre Joyce 30/06/08 13.0%)
Net profit $112,000,000 (Pre Joyce 30/06/08 $969,000,000)
Net profit margin 1.2% (Pre Joyce 30/06/08 4.7%)
Flexible Response.
The "Book Value" of $2.62 per share you refer was current at 30/06/10. We do not know the current book value or the contingent liabilities.
There are some very interesting financial statistics for QF which applied as at 30/06/10.
Total Current Assets $5,832,000,000. Total Current Liabilities $6,241,100,000
Return on Capital 3.0% (Pre Joyce 30/06/08 10.0%)
Return on Equity 2.9% (Pre Joyce 30/06/08 13.0%)
Net profit $112,000,000 (Pre Joyce 30/06/08 $969,000,000)
Net profit margin 1.2% (Pre Joyce 30/06/08 4.7%)
The "Book Value" of $2.62 per share you refer was current at 30/06/10. We do not know the current book value or the contingent liabilities.
There are some very interesting financial statistics for QF which applied as at 30/06/10.
Total Current Assets $5,832,000,000. Total Current Liabilities $6,241,100,000
Return on Capital 3.0% (Pre Joyce 30/06/08 10.0%)
Return on Equity 2.9% (Pre Joyce 30/06/08 13.0%)
Net profit $112,000,000 (Pre Joyce 30/06/08 $969,000,000)
Net profit margin 1.2% (Pre Joyce 30/06/08 4.7%)
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Balanced Equity have been a substantial shareholder in QANTAS for a long time and where I believe one of the organizations that publically rejected the proposal for the APA Takeover.
Having said that Andrew Sisson has in the past been very supportive of AJ but not sure what his current thoughts are on the subject.
More to follow
The kelpie
Having said that Andrew Sisson has in the past been very supportive of AJ but not sure what his current thoughts are on the subject.
More to follow
The kelpie
Damn! Andrew Sisson has smelled the same rat! Qantas is now officially "in play."
What Sisson has done is accumulate a "blocking" holding that a bidder will have to take out to get the company I suspect.
From 2007:
The man who may decide if airline bid flies - Business - Business
What Sisson has done is accumulate a "blocking" holding that a bidder will have to take out to get the company I suspect.
Balanced Equity buys 22.7m Qantas Airways shares
Published 5:36 PM, 17 Jun 2011
Source: News Bites
Balanced Equity Management Ltd bought a net 22,656,088 Qantas Airways Ltd shares between March 1 and June 15, 2011, increasing from 161,110,780 shares (7.11%) to 183,766,868 shares (8.11%).
Published 5:36 PM, 17 Jun 2011
Source: News Bites
Balanced Equity Management Ltd bought a net 22,656,088 Qantas Airways Ltd shares between March 1 and June 15, 2011, increasing from 161,110,780 shares (7.11%) to 183,766,868 shares (8.11%).
From 2007:
The man who may decide if airline bid flies
March 18, 2007
Much hangs on how Andrew Sisson and Co value Qantas, writes Christopher Webb.
THE serious money people say he's brilliant and doesn't want or need publicity. Little-known Andrew Sisson is in the spotlight because he and other big investors could block the $11.1 billion board-backed private equity takeover of Qantas.
The Geelong-born Sisson, 54, runs a tiny boutique funds management firm called Balanced Equity Management, which he set up in 1988. At the start, there was so little money coming through the door that he couldn't pay himself a cent. Now, his firm would be one of the most profitable in the country and it's run on a shoestring with just 11 employees.
Along with team members Andrew McGann and Steven Fahey, he looks after $12.3 billion of Other People's Money. On behalf of its investor clients, Balanced Equity holds about $410 million of Qantas shares — about 4 per cent of the total.
If Mr Sisson and other professional investors, UBS Asset Management and possibly Maple-Brown Abbott, who between them hold about 12 per cent of Qantas, reject the bid from Airline Partners Australia, the takeover will not get 90 per cent of the shares. It would then fail.
Both Mr Sisson and UBS Asset Management have reportedly indicated to the Qantas board that the offer could be too low — between them, they've got just under 10 per cent, and that in itself is just about enough to stop the takeover. They want more information.
The stakes are huge, the pressure is on and the quietly spoken Mr Sisson, who favours grey suits, with a pink tie the only touch of flamboyance, gives the impression he is not enjoying the attention.
He'd prefer to be reading company reports or, when he's not working, following Hawthorn Football Club.
"At the moment there is this intense focus, which is not much fun," he says. "People are trying to second-guess what we're going to do and I've got to be very careful that I don't say anything which could be interpreted by somebody else as having an implication for the Qantas takeover."
Right now, the man who went to Melbourne University and before that Melbourne Grammar, is centre-stage. The media bailed him up at a corporate governance conference on Friday, wanting to know what he was going to do with his Qantas shares.
Would he sell them into the takeover or would he sit on them?
They were wasting their time. His stock response is that he hasn't decided and that he will continue to ponder just what Qantas is worth.
That is his line of work: figuring out what each of the 50 biggest companies listed on the stock exchange is worth.
About 96 per cent of the $12 billion or so he invests for his big superannuation fund clients goes into the shares of those top 50 companies. He is always fully invested and he's likely to have money in almost all of those companies. If he thinks a stock is cheap, he'll have more money in that one than another that he thinks is correctly priced, or another which he thinks is expensive.
"We're looking to invest in long-term value," he says.
"That really means we appraise each company and come up with what we think its sustainable value is. We just try to be more overweight in those companies that we think represent better than average long-term value.
"We try and value a company. We conceptually look at it and ask, 'How many millions is this company worth?' That is the sort of question we're trying to answer."
Ask people in the money game what they think of Andrew Sisson, who trained as an actuary before working as a fund manager for the old National Mutual Life group, and they always talk about his brain.
"He's outstanding. He's just intellectually brilliant," says one fund manager. "He's as straight as an arrow. He has a very low profile, but in a situation like this, he and his Balanced Equity company are in the public eye because he's a hold-out on the Qantas takeover.
"People are saying, 'Balanced who? Well, hey, that's Sisson, McGann and Fahey."
Over the years, Mr Sisson has made a lot of money out of options, futures, convertible notes and other not so ordinary investments.
To one professional money manager, that's another sign of Mr Sisson's intellect.
"Mathematically, he would eat that stuff for breakfast," he says.
"I would look at that rocket science and I'd probably get my mind around it if I studied it on paper and thought about it, whereas he just does it in a canter."
Twenty years ago, he saw how the late Robert Holmes a Court was able to make profits by trading BHP shares in circles — selling the shares only to immediately buy them back. He talked to Mr Holmes a Court about his BHP activities and the presumption was that he knew that Mr Sisson had figured out that the share-trading profits were not sustainable.
The next day, the wily share-trader offered Mr Sisson a job, which he accepted, but the 1987 sharemarket crash obliterated the Holmes a Court empire and Mr Sisson found himself out of a job six months later.
Mr Sisson then set up his own funds management business.
Since then he has beaten the 50 leaders sharemarket index — in the past seven years, Balanced Equity's return has been 14.5 per cent a year, compared with 13 per cent for the index.
"We're not a high-risk manager," he says.
"It would be fair to say that the best performance period for us was for the four years from the top of the dot-com bubble.
"That was when we were really shooting the lights out. In the current environment, it's not quite as easy."
Meanwhile, the mild-mannered Mr Sisson — one friend reports he has never heard him swear — and his team will be thinking, thinking, thinking about just what Qantas is worth.
And the Macquarie Bank-led private equity consortium will be sweating right up to his decision.
D-day is April 3, when the $5.45-a-share offer is due to close.
March 18, 2007
Much hangs on how Andrew Sisson and Co value Qantas, writes Christopher Webb.
THE serious money people say he's brilliant and doesn't want or need publicity. Little-known Andrew Sisson is in the spotlight because he and other big investors could block the $11.1 billion board-backed private equity takeover of Qantas.
The Geelong-born Sisson, 54, runs a tiny boutique funds management firm called Balanced Equity Management, which he set up in 1988. At the start, there was so little money coming through the door that he couldn't pay himself a cent. Now, his firm would be one of the most profitable in the country and it's run on a shoestring with just 11 employees.
Along with team members Andrew McGann and Steven Fahey, he looks after $12.3 billion of Other People's Money. On behalf of its investor clients, Balanced Equity holds about $410 million of Qantas shares — about 4 per cent of the total.
If Mr Sisson and other professional investors, UBS Asset Management and possibly Maple-Brown Abbott, who between them hold about 12 per cent of Qantas, reject the bid from Airline Partners Australia, the takeover will not get 90 per cent of the shares. It would then fail.
Both Mr Sisson and UBS Asset Management have reportedly indicated to the Qantas board that the offer could be too low — between them, they've got just under 10 per cent, and that in itself is just about enough to stop the takeover. They want more information.
The stakes are huge, the pressure is on and the quietly spoken Mr Sisson, who favours grey suits, with a pink tie the only touch of flamboyance, gives the impression he is not enjoying the attention.
He'd prefer to be reading company reports or, when he's not working, following Hawthorn Football Club.
"At the moment there is this intense focus, which is not much fun," he says. "People are trying to second-guess what we're going to do and I've got to be very careful that I don't say anything which could be interpreted by somebody else as having an implication for the Qantas takeover."
Right now, the man who went to Melbourne University and before that Melbourne Grammar, is centre-stage. The media bailed him up at a corporate governance conference on Friday, wanting to know what he was going to do with his Qantas shares.
Would he sell them into the takeover or would he sit on them?
They were wasting their time. His stock response is that he hasn't decided and that he will continue to ponder just what Qantas is worth.
That is his line of work: figuring out what each of the 50 biggest companies listed on the stock exchange is worth.
About 96 per cent of the $12 billion or so he invests for his big superannuation fund clients goes into the shares of those top 50 companies. He is always fully invested and he's likely to have money in almost all of those companies. If he thinks a stock is cheap, he'll have more money in that one than another that he thinks is correctly priced, or another which he thinks is expensive.
"We're looking to invest in long-term value," he says.
"That really means we appraise each company and come up with what we think its sustainable value is. We just try to be more overweight in those companies that we think represent better than average long-term value.
"We try and value a company. We conceptually look at it and ask, 'How many millions is this company worth?' That is the sort of question we're trying to answer."
Ask people in the money game what they think of Andrew Sisson, who trained as an actuary before working as a fund manager for the old National Mutual Life group, and they always talk about his brain.
"He's outstanding. He's just intellectually brilliant," says one fund manager. "He's as straight as an arrow. He has a very low profile, but in a situation like this, he and his Balanced Equity company are in the public eye because he's a hold-out on the Qantas takeover.
"People are saying, 'Balanced who? Well, hey, that's Sisson, McGann and Fahey."
Over the years, Mr Sisson has made a lot of money out of options, futures, convertible notes and other not so ordinary investments.
To one professional money manager, that's another sign of Mr Sisson's intellect.
"Mathematically, he would eat that stuff for breakfast," he says.
"I would look at that rocket science and I'd probably get my mind around it if I studied it on paper and thought about it, whereas he just does it in a canter."
Twenty years ago, he saw how the late Robert Holmes a Court was able to make profits by trading BHP shares in circles — selling the shares only to immediately buy them back. He talked to Mr Holmes a Court about his BHP activities and the presumption was that he knew that Mr Sisson had figured out that the share-trading profits were not sustainable.
The next day, the wily share-trader offered Mr Sisson a job, which he accepted, but the 1987 sharemarket crash obliterated the Holmes a Court empire and Mr Sisson found himself out of a job six months later.
Mr Sisson then set up his own funds management business.
Since then he has beaten the 50 leaders sharemarket index — in the past seven years, Balanced Equity's return has been 14.5 per cent a year, compared with 13 per cent for the index.
"We're not a high-risk manager," he says.
"It would be fair to say that the best performance period for us was for the four years from the top of the dot-com bubble.
"That was when we were really shooting the lights out. In the current environment, it's not quite as easy."
Meanwhile, the mild-mannered Mr Sisson — one friend reports he has never heard him swear — and his team will be thinking, thinking, thinking about just what Qantas is worth.
And the Macquarie Bank-led private equity consortium will be sweating right up to his decision.
D-day is April 3, when the $5.45-a-share offer is due to close.
The man who may decide if airline bid flies - Business - Business
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Sissons Purchase
Probably the reason the share price rose a cent.Now that Sisson is involved other players will sit up and take notice.Perhaps the share price has bottomed as a result
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i wonder what the rest of the other shareholders think about the share price?
i sold at $4.00, very happy now.
i sold at $4.00, very happy now.
From memory indamiddle you must have sold around the last quarter of 2006/first quarter 2007 ? So many moons ago, oh how things have changed somewhat. I imagine a day in the not so distant future when people will be saying 'I sold at $0.40 per share, very happy now' !!!
It is interesting to note too when you look at the Qantas website for info about the Ash cloud to it directs you to a page that has words to the effect of
"sometimes we have delays/cancellations caused by things such as Weather and INDUSTRIAL ACTION".
It seems to me they are even getting their web site ready to take on the unions as well.
I'd be waiting a bit longer before I'd look at buying any shares based on that alone.
It also shows the siege mentality going on in the bunker at the moment that a few in management deem it necessary to put that on a company website blaming their staff for delays caused be industrial action when none has happened yet, when those very staff are coping with a disrupted travelling public and all the thrills that has at the moment.
"sometimes we have delays/cancellations caused by things such as Weather and INDUSTRIAL ACTION".
It seems to me they are even getting their web site ready to take on the unions as well.
I'd be waiting a bit longer before I'd look at buying any shares based on that alone.
It also shows the siege mentality going on in the bunker at the moment that a few in management deem it necessary to put that on a company website blaming their staff for delays caused be industrial action when none has happened yet, when those very staff are coping with a disrupted travelling public and all the thrills that has at the moment.