IMO, I think the CEO deliberately letting the stock down. With the massive restructuring plan on the side, I guess they are trying to gain a buy in from various stakeholders on the restructuring plan by deliberately showing us/them a massive red figures on the book to urge the need to change.It may be true or it may be not, well its full of speculation.
However, it's still a long way to go for the complete restructuring, it can end up as the most successful restructuring every conducted or even utterly failure and in fact destroying the brand to a point of no return.
Reading recent articles, Alan Joyce statements and his strategy seems to contradict each other. He said that he will not put much more investment on long haul international route until a return can be seen but why are they still going with the A380???
Commsec still put "Buy" recommendation. BuySellSignals favor the long term buy with 5/5 but with short term of 2/5
Quoted from BuySellSignals Long-Term Rating (Fundamentals): 5 out of 5 Qantas Airways is ranked number 5 out of 27 listed transportation companies [that traded today] in Australia with a market capitalization of $4.4 billion. Within its sector it has a relatively moderate P/E of 39, a low P/S of 0.3. It has a moderate relative ROE of 1.9% and ROA of 0.6%. Stocks are scored on a set of parameters reflecting fundamental analytical tools involving valuation, size and financial performance. They are ranked according to the average values of those parameters. The highest rating is 5 and the lowest rating is 1.
QAN Price at posting:
$1.93 Sentiment: Hold Disclosure: Held
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