QAN probably would be at $5 or so, or even $6, if you look at the performance of SingAir, Virgin, and other airline stocks over the last 5 months. Load factors and yields are at historic highs. The company has had 4 profit upgrades. The ASX50 are trading at a P/E of 17-20 vs just 13 for QAN at 5.45.
The CEO and the board recommended, and AGGRESSIVELY recommended, the 5.45 bid knowing full well that profit upgrades were in the wind, and knowing that the bid was lowball based on P/E. Jackson even hurled insults at a major shareholder for not accepting - grossly unprofessional. Dixon and mates had their snouts in the trough, and would have collected some $90 million between them had it got up, yet they were allowed to make recommendations to shareholders in spite of this massive conflict of interest. This deal reeked to high heaven from day one, and now that the air is clear it's time for some house cleaning too.
QAN Price at posting:
0.0¢ Sentiment: None Disclosure: Held
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