Fuel drain takes $2bn off Qantas

[JohnK]

Buying QF shares? Now is the time!

Fuel drain takes $2bn off Qantas
Kevin Andrusiak
May 26, 2006


Rising demand for aviation fuel combined with limited capacity in Asia has prompted an investor backlash against airline shares and wiped billions from the value of Qantas, n what has become one of the worst performing sectors of the Australian equities market.

Shares in the national carrier have dived with its stock-price chart resembling the descent of one of its jumbo jets into Kingsford-Smith airport in Sydney.

The sell-off in the past 15 weeks has wiped more than $2 billion from its market capitalisation, returning the price to about where it was before the record bull run began in March 2003.

Rising oil prices are also seen as the biggest cause of the sell-off, which started after the stock hit a 12-month high of $4.29 in February.

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[Groundfeeder]

Should we both be still alive on the planet in 3006, would we still anticipate QF shares getting above $4 under current industry/management profiles??

 

[Yada Yada]

Should we both be still alive on the planet in 3006, would we still anticipate QF shares getting above $4 under current industry/management profiles??

My amateur opinion is that the QF share value has been overvalued for quite some time.

Congrats on reaching your first century of posts, Geoff!

 

[JohnK]

Should we both be still alive on the planet in 3006, would we still anticipate QF shares getting above $4 under current industry/management profiles??

That is very funny. Will QF still be around in 3006?

Shares were $4.29 in February under current industry/management profiles and!

 

[NM]

And remember that the best way to end up with a small fortune in the airline industry is to start with a large one.