CX Shares slip below HK8
 

And so has been the case for the last few months, the sinking feeling of the plummeting value of Cathay Pacific. Another 10% and we will be in uncharted territory regarding possible takeover bids or share swops. Cant be long before Qatar wants an increased slice.

But before then , there’s that small matter of fat cat pilots sat on their backsides , ( literally) earning far too much in the current climate.

But hey, at least the hk$ is strong and the GBP weak . Very weak, time to cash in and run to retirement. Lol.

You seem to have a bit of a chip on your shoulder regarding the higher earning pilots in the airline. The pilots who have dedicated most if not all of their aviation careers to CX and HK (and their families futures as well). I suppose you would simply like us all to walk off the gang plank and drown in the sea. Then the newbies can get what is "rightfully" theirs. Ok, got it Kahaha...thank you.

So well put! So accurate! So sad!

Some are like dogs hoping their owners get full before finishing their meal so they can get the scraps... and scrape a “career” together.

This always reminds me of crabs in a bucket, all the crabs want to get out, but as soon as one is about to, the other ones drag it back down.

You should only wish that the better paid ones get worse conditions, if you will actually get better ones because of it, otherwise it will just be you next..

Again, so true! Wish the young ones could understand that concept.

One post( allegedly) by "them" is all you guys need to classify and condemn "the" young. Jesus, really?

PS I am surprised Cathay stock is STILL at 8ish. I wouldn't buy it for 5.

After the passing of new legislation yesterday and the way China is exerting it’s control do you really think any foreign country would even think of taking over or buying shares in CX?

I would think CX will be a pariah on the international stage.

My guess is you are sitting on huge paper losses. Since I don't, who is the financial moron?

I also never disputed the free float share proportion of Cathay stock, or did I?

I said I personally would not buy Cathay for 5. Cathay will be a different and most probably significant smaller company in the future.
In my opinion this will be reflected in the share price. It's just my opion and I have (obviously) no idea where the price will be in the future. Nobody knows.

A future cash shortage might lead to an increase of the free flow share. Or one of the current institutional share holders might want to exit. Which means existing shares might suffer, regardless how high the proportion of institutional holders is today.I would not claim to be an expert stock trader ( and never have), but as far as I know large institutional ownership share in public traded companies are rather the norm than the exception. Many other airlines have similar shareholder constructs, e.g. easyjet. To conclude this would somehow automatically safeguard a stock from devaluating is certainly wrong.

If you think otherwise, now is the chance to buy for you. No need to insult me, just put your money where your mouth is and reap your profits later.

I personally never understood why employees buy the stock of their own employer in the first place. If your company goes belly up you lose your job and your assets. But that's just me.

best post I’ve seen all year......

LMAO.

The best financial advice you can get as a pilot is to see what your colleagues are doing, then do the opposite!

CX has something a lot of other carriers do not have. An extremely strong home base cargo market. Both belly and full freighters. Which means they have cashflow. Yes, the current climate is dire. But compared to many others CX are relatively well positioned for the future. My 2c

With the current Covid and the Chinese hardline I would very much disagree with you. At the very least you are in as much trouble as the rest. At the worst you are screwed royally.

The reality will probably lie somewhere in the middle which still puts you worse than the rest. Hold on to your hats, the times are changing!

If Qatar were to boost its stake it would like only be with a wink & nod to the mainland to go along to get along with the rebranding "Air China HK", or any number of initiatives the board may have later on.

Did you actually put "like" into a written sentence?

It's bad enough having to listen to someone say it every sentence, sometimes twice in a sentence....but now people are actually writing it in, as if, it's actually part of a normal sentence.

https://www.bloomberg.com/news/artic...d=premium-asia

"Embattled Hong Kong carrier Cathay Pacific Airways Ltd. and its two main shareholders Swire Pacific Ltd. and Air China Ltd. suspended trading of their shares on Tuesday, pending an announcement."

Something's afoot!

Firewall,

institutional shareholders don't guarantee a minimum price, and even if they miraculously would, the composition and shares of these institutional investors can obviously change.

With the state bail out the latter happened.

Perhaps now we will see a significant dillution. Or maybe not, nobody knows.

Your lectures about how it all works on the stock market, your big insights on trading volumes, imaginary safety nets... not only simply wrong, but ludicrous and arrogant.

I do enjoy how you squirmed out of saying "like it's actually part of..." Like, as if using the word like there would have totally made your point redundant Becky.
Also, I feel the post that got you up on the grammar high horse probably meant to say "likely".

Shares in CX at hk$6.8 at the end of trading today.
The slide continues, yet what is actually being done to stem the losses?

No layoffs, why? BA 12000 jobs
VA has shed 500 pilots . Ryanair 3000 pilots.
These airlines are now recovering.

Will business ever return to pre covid levels?
Not for years . There is growing anti china sentiment amoung the populations of the developed world. Common folk are trying to avoid Chinese produced products. Currently a different task, but the momentum is building .

But cx management think air travel via hk will rebound before the cash and bonuses run out .

Who knows. I’m betting the shares will continue their slide , the airline will have to lay off some of all those folks they kerp at cx city .

I mean , what do they all really do for those 90 min lunch breaks in the cx canteen?

When the bailout share split happens then the "real" value of the shares will be below $4.68, which is the strike price for the HKGov warrants/options.
Remember only 15% public float as well.

At the moment I reckon (my guess):
1. Looking at which routes will be viable
2. Working out fleet and headcount reductions
3. Spending a lot of time with lawyers to avoid court cases and seeing how much room they have to manoeuvre re contracts, seniority, residency etc.
4. as per 3 but working out how to implement a new contracts

The bailout gives them breathing space that’s all