Qan accumulation complete.

Been accumulating over the last 6 months with my last batch bought yesterday totalling just over 1.6m. View to holding 5 to 10 years unless goals are met earlier.


Anyone's thoughts on QAN? Good, bad or indifferent?

 

Announced return to full capacity between Sydney-Melbourne yesterday & flights to resume Syd/Melb to London via Darwin (no more Perth).

 

As far as airlines go they have come out of the last couple of years fairly well Id say. It hasn't been without taking on a fair amount of debt but there are plans to address that.

Imo QAN have been terrible at investing in thier future (versus say AIZ) but the delivery of additional premium heavy 787s, A350s, and an announcement of a domestic fleet replacement (probably Max's and E2s) due out by the end of the year should be a positive for the next 10-15 years.

You are bolder than I am with your position, but goodluck all the same!

 

QAN were up over 2% in the morning session, although I would have expected them to be up thousands of feet.

 

What’s the lowest buy price and the high?

not that it matters, but I am nosey

 

Lowest was $4.12 and highest $5.70.

 

Long term? No, not something I would hold with that amount of money.

 

Fair enough. I have my target and once reached I'll be about. For better or worse.

 

Quite the company and sector concentration risk. High fixed and variable costs. Wasn't there a stat somewhere that the airlines have made zero net profit since the dawn of aviation?

What percentage of your portfolio?

 

Pocket change for @Sackie ...his real investments are in property...

Cheers,
Oracle.

 

Airports?

 

I’ve held Qantas shares for over 23 years, they gave them away as part of the employee bonus scheme. I’ve never gotten around to selling them.
When the company was doing well they would drop, as low as $1 and in bad times they can go up as high as $7

 

Not a significant amount. As @oracle mentioned the bulk of my portfolio is in resi and commercial real estate.

 

Interesting insight. Planning to offload the majority at the $7 mark or just before.

 

I received them for free and have no real need to sell them. They may even pay dividends again in a few years!

 

I tend to agree that something like Qantas is a good bet at this point. However, once it reverts to the mean I'd strongly consider exiting. The airline business is highly competitive with numerous new cheap entrants to the market in the past decade or so that have changed the business.

 

Personally if I had made a tidy profit from the recent uplift I would be looking to reduce exposure, or at least not looking at a 5-10y horizon - plenty of uncertainty about whether (and by when) it will be able to return to pre-pandemic levels of profitability and short term performance (eg pent-up demand caused by lockdown, plus less domestic competition currently) may not be representative of whatever the new normal is…

 

My 5 to 10 year horizon is Max. Looking to exit at a certain price point. Sooner the better. But I'm patient.

 

Perhaps now is the high point, with the promise of good times vs actual performance (if you've already made your dough).

It's a bit like property prices - where punters expect another 10% growth and by the time that all gets published and sinks into people's pysche, the 10%'s already done.