VituVingiSana wrote:Horton wrote:Anualized eps of 2.04. Pe of just over 10. Not cheap, not overpriced either. Just about right. I am buying this monopoly. Since there is more certainty here and the pref share fiasco now is water under ze bridge.
Now you are the KQ expert... and you went underground...
So what is your take on the Capital Raising? What's the point of it? KQ has over 7bn in cash sitting in accounts/deposit...
The 787s do not come through until 2013 [if KQ is lucky] so the point of deposits makes no sense at the moment.
Please enlighten us!
Hey dude. sorry was working hard. Yeah ive been saying this for a while. Kq do need to do a rights issue for sure. Picture this. ET have 40 sOmething airplanes but they carry the same amount of pax that Kq did last year. Kq has approx 29 airplanes. That's a cabin factor of 70% or thereabouts for KQ whereas ET is at a much lower cabin factor. That means two things, 1. KQ is more efficient than ET when it comes to filling seats. 2. Cabin factor of 70% is extremely high and th only way to go if they don't open new routes is down as costs increase everyday and just to remain par at last years profit leveLs, KQs cabin factor has to increase by about 10% to keeP up with fixed increments eg CBA requirements, inflation and that is quite hard.
The way to do it is to buy new airplanes and open new routes. And rights would be the way to go for KQ. they could also do a bond.
More on that later.