Can anyone advise why shareholders would vote for buyback...

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Isaac51

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16/09/16

13:57

Post #: 19207019
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Originally posted by Aj101 ↑

Last time Qantas did a buy back the share price went from $4.22 to $2.68.
This is a drop of nearly 40 percent.
In most buy backs it is a good thing for the investor, where the company buys back in causing an inflation in price.
It seems to be the opposite in this case where the company buys back in puncturing the stock.
One might ask why should I buy back in paying top dollar, it will cost me more money and it will push the price even higher with more investors wanting to buy in pushing the price even higher.
If the company had the investor in mind this is what should happen.
They have their selfs in mind so let's employ shorters to buy out the bidders to trigger investors stop losses spooking the market, pushing the price even lower so they can capitalise on the investors losses.
That's Scenario. 1
Let's hope we don't see another 40 percent drop from $3.85 to $2.31 with this buy back.
Surely they wouldn't do this, that would be pushing the boundaries of insider trading.

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Can anyone advise why shareholders would vote for buyback Tranche 2 at AGM if current shareholders value gets pushed down by large intos. Looks like a dump to $3.10 and pump to $3.45 set and repeat!
Looks like market has changed its view on POO for non budget airlines and needs it to go to $55 - $60 range. Budget airlines causing too much capacity and cheap airfares. Increase in POO will create inflation and budget airlines will need to raise fares putting margin pressure on them. Qantas will be well placed to deal with higher POO costs (because hedging and stripping of costs) and increased airfares enabling greater margin.

Looking forward for POO to get to $60 asap.

Any comments...

IMHO and GLTAH

QAN Price at posting: $3.22 Sentiment: Hold Disclosure: Held
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0 Great analysis

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