Let's Buy Qantas Shares

[Stacycrow]

Had a great flight today on QF317 returning to Singapore.

Some Qantas staff told me that they are buying Qantas shares and I see it’s reported in the news today that Qantas staff are buying shares to save the airline.

 

[trblvb]

I bought 5K worth last week – trying to scrounge up some money to buy more before they go up in price (I hope)…

 

[trblvb]

I bought 5K worth last week – trying to scrounge up some money to buy more before they go up in price (I hope)…

Oh and forgot to add – I don’t work for Qantas.

 

[opusman]

Now that Abbott has mooted lifting the overseas investment restrictions I imagine they'll bounce up quite a bit on Monday.

 

[davem]

Buying shares doesn't actually get qantas any more $$$

 

[Stacycrow]

Buying shares doesn't actually get qantas any more $$$

True, the stock price reflects the value of its holder not the company. However companies benefit in various ways from a higher stock price.

E.g. Companies can use their stock to make acquisitions or other deals, a company with a high stock price is not as vulnerable to a takeover etc…

 

[cove]

Been there and got my average under a dollar with 2 buys. Should be ok but if they halve then that could hurt.

 

[Melburnian1]

I follow the dicta of a gentleman with the initials 'WB" who advises 'never buy shares in airlines or insurance companies.'

He was correct for QBE, and looks like being correct for QF, VA and even previous golden haired boy Rex.

Purchasing shares does not 'improve' (as in 'make more competitive') QF's uncompetitive salaries, wages and staff entitlements.

Good luck to anyone who does, but the value of a share purchased at $1 can in a worst case go to nothing.

 

[cove]

It will be interesting to see if Qantas shares bounce before Christmas or sink to an all time low. At the current prices it has stirred some interest and last time they went this low there was a great trade.

 

[Formal Hall]

When I first read the title I thought there was going to be a AFF leveraged buyout of Qantas.

(If you could earn 10 points per dollar for buying shares, AFF just might manage it)

 

[Supersonic Swinger]

"It's a great place to work and it's a great company that does important work. But airlines are not an investment."

Bob Crandall, former American Airlines CEO

 

[cove]

Only use money you can afford to lose when you buy airline shares.
Ten points per share.....now there is an idea.....
To be a millionaire owning airline shares around the world you would have started as a billionaire.
I buy Australian airline shares for the thrill of the chase when they are at historical lows but that doesn't mean I will make money this time.

 

[DaveB]

Cove, I can't believe you are not somehow earning SQ points on the trade to hedge your bet.

 

[castie]

Someone say points for trading?

Joining ANZ E*TRADE is easy. You can open an account using our online application. If you're already registered for ANZ Internet Banking it's even easier.
It's free to join and gives you access to E*TRADE's superior tools and in-depth independent research. Plus, we're the only online trading service that offers you the opportunity to earn Qantas Points as you trade[SUP]1[/SUP].

 

[cove]

DaveB we have way more Qantas points than SQ points because Kris points expire.
I have many points warehoused in Citi and Westpac to avoid the expiry.
E Trade is ok but I use Comsec and several brokers (but no QFF points).
Don't get too long on airline shares as they are not "investment quality".

 

[Stacycrow]

"It's a great place to work and it's a great company that does important work. But airlines are not an investment."

Bob Crandall, former American Airlines CEO

Maybe, however when American Airlines parent AMR Corp. filed for bankruptcy protection in November 2011, its stock plunged to 20 cents a share and was soon delisted from the New York Stock Exchange.

Today, as AA prepares to close a merger with US Airways Group Inc., the stock trades at just below $11. Huge windfall for investors that took a risk.

Could this happen to Qantas?

 

[trblvb]

Hope your right. You sound pretty savvy on shares and investments!!

Only time will tell...

 

[DC3]

I sold my Qantas shares about five years ago for $3.60, having bought them at $3.00.

Would probably not be game to buy again.

 

[whatmeworry]

Looks like the QF staff want to hold a blocking share in QF.

According to media reports on Sunday, a Qantas pilot is considering an employee bid for up to 25 per cent in the iconic airline, known as "the flying kangaroo", to keep it viable.

Qantas has to fight its own battles, Tony Abbott says

 

[ermen]

I follow the dicta of a gentleman with the initials 'WB" who advises 'never buy shares in airlines or insurance companies.'

He was correct for QBE, and looks like being correct for QF, VA and even previous golden haired boy Rex.

Purchasing shares does not 'improve' (as in 'make more competitive') QF's uncompetitive salaries, wages and staff entitlements.

Good luck to anyone who does, but the value of a share purchased at $1 can in a worst case go to nothing.

Actually the airline industry is very different from when WB made that statement. In fact, he said the same for railroads but changed his mind recently with the purchase of Burlington National.
Did he also say the same for insurers? Strange considering he loves the float that insurance cos provide...