share price, page-9

Franklin Resources (US based global fund manager ) have increased their stake from 15.4 per cent to 16.42. They did this the day after Qantas announced $252m first half loss.

And they are no fools, so what gives?

My suspicion that I mentioned elsewhere here, is that the price is being supported by Qantas' break-up value being higher than its whole value.

The only thing certain in all this is that the status quo is unsustainable. Every day that passes without a decision being made is another nail in the coffin.

Labor won't allow any changes to the Qantas Sale Act
The government won't support the company financially.
The Board is paralysed with inertia.
The CEO's hands are tied.
The unions seem to hate their employer.
Qantas loses $2m every day.
Franklin buys more shares.

Put all that in the blender and what do you get? A great big fire sale, with Franklin in the box seat, is how I see it.

Unless something gives soon, the question of foreign ownership will be academic.