End of buyback, page-29

SOrry we have very different opinions of good fiduciary management. Enacting a share buyback when you last officially reported negative shareholder equity (negative retained historical profits) is reckless. It should be illegal in my opinion. It shows what a joke ASIC sculpted corporate governance is that Joyce got this through.

Something has to give on the balance sheet. They've made a quick profit during, by their own admission, distortions in the market that Joyce only admitted himself yesterday due to massive bounce in demand versus supply shortfalls.

The company was again, weeks away from bankruptcy last year by its own admission. It still has irrefutably a very weak balance sheet by any measure you care to take.

As others have pointed out, Qantas has an ageing fleet and indisputably a well reported operational business issues. The company needs CapEx. It might even be below depreciation levels I suspect next earnings i.e. CapEx not even sufficient to cover the ongoing devaluation of assets let alone inspire new business growth opportunities.

You might have heard the expression "you fix the roof when the sun is shining, not when its raining". Any pullback in business conditions (record successive interest rate rises anyone?) sees Qantas' balance sheet again exposed. Not only did they miss an opportunity to shore up the balance sheet, they actually very purposely weakened it.

I don't know how simpler to explain it to you. Qantas had to sell shares at just over $3 to shore up a balance sheet just two years ago (i.e. sold shares at $3) and now bought them back at $6+, weakening the balance sheet. If you like your invested capital managed like that as a shareholder, your logic defies me.

Personally I'd rather make exactly the opposite trade as an investor.