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Post by sloopjohnb on Jun 1, 2023 10:26:27 GMT 12
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Post by fish on Jun 1, 2023 11:33:05 GMT 12
Does Accident Compensation Corporation hold shares in Auckland Airport too? Or just Auckland Council? (AC) Auckland City Council dispanded about 13 or so years ago.
Now, what is the problem with selling the shares? If the rate of return on the shares is less than the cost of interest on the debt, surely it's a no brainer?
I love the quote below:
During his speech, Brown reiterated his intention to sell council's shares in Auckland Airport.
Brown said the council had been living beyond its means for years and the “mess” wasn’t created by Covid-19.
“I also inherited a return cast of councillors, quite a lot of them not financially literate and with a severe aversion to making difficult and unpopular choices.
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Post by sloopjohnb on Jun 1, 2023 11:37:34 GMT 12
well bugger me I made a cockup.  We are rebels down in the Franklin Distruct Council area.  |
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Post by sloopjohnb on Jun 1, 2023 19:10:54 GMT 12
Good on him only selecting media to ateend his press release.
They are all crying now.
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Post by GO30 on Jun 2, 2023 9:08:14 GMT 12
Does Accident Compensation Corporation hold shares in Auckland Airport too? Or just Auckland Council? (AC) Auckland City Council dispanded about 13 or so years ago. Now, what is the problem with selling the shares? If the rate of return on the shares is less than the cost of interest on the debt, surely it's a no brainer? I love the quote below: During his speech, Brown reiterated his intention to sell council's shares in Auckland Airport. Brown said the council had been living beyond its means for years and the “mess” wasn’t created by Covid-19. “I also inherited a return cast of councillors, quite a lot of them not financially literate and with a severe aversion to making difficult and unpopular choices. AIA has not paid any dividends for 4 or 5 years.
It's just started a multi billion dollar tweak they have to fund somehow so future dividends are projected to be 2.3% at best, should they even happen.
The P/E is shit at 145 odd. The consensus is the shares are over 350% over valued so unless Ma and Pa investors keep using their lack of nouse over common sense there is unlikely to be any further gain of any significance. Only 18.1% is in public ownership, via the ACC, so it's hardly privatising assets if they sell.
Then add to that in theory we are told aviation is a sunset industry due to climate change.
Add those up and is really a good investment to hang onto considering you're on the bones of your arse and steering down the barrel of a massive rates rise?
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Post by GO30 on Jun 2, 2023 9:10:02 GMT 12
Good on him only selecting media to ateend his press release. They are all crying now. I have no problem at all with him or anyone else selecting the media they want to talk too. The media do that so they are only reaping what they have sown.
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Post by fish on Jun 2, 2023 12:52:30 GMT 12
Does Accident Compensation Corporation hold shares in Auckland Airport too? Or just Auckland Council? (AC) Auckland City Council dispanded about 13 or so years ago. Now, what is the problem with selling the shares? If the rate of return on the shares is less than the cost of interest on the debt, surely it's a no brainer? I love the quote below: During his speech, Brown reiterated his intention to sell council's shares in Auckland Airport. Brown said the council had been living beyond its means for years and the “mess” wasn’t created by Covid-19. “I also inherited a return cast of councillors, quite a lot of them not financially literate and with a severe aversion to making difficult and unpopular choices. AIA has not paid any dividends for 4 or 5 years.
It's just started a multi billion dollar tweak they have to fund somehow so future dividends are projected to be 2.3% at best, should they even happen.
The P/E is shit at 145 odd. The consensus is the shares are over 350% over valued so unless Ma and Pa investors keep using their lack of nouse over common sense there is unlikely to be any further gain of any significance. Only 18.1% is in public ownership, via the ACC, so it's hardly privatising assets if they sell.
Then add to that in theory we are told aviation is a sunset industry due to climate change.
Add those up and is really a good investment to hang onto considering you're on the bones of your arse and steering down the barrel of a massive rates rise?
Thanks for that. On RNZ, one of the Councilors say they get a $40mil dividend each year. So that is clearly wrong, but more to the point, if the capital value is $2.3 bil, then the return of $40mil is only 1.7% (if I got my zero's right, I'm not used to working in billions, aren't an SME owner). We don't know what the Council's debt interest rate is, but it is going to be more than 1.7%, and definitely more than zero. So it sounds like a no-brainer. I see today one of the financially illiterate Councilors, Alf Filipina, is accusing the Mayor of Blackmail. Literally, if you don't sell the Airport shares we will put rates through the roof and cut all you arts and culture spending... erm, that is just the reality buddy.... Fuck, our so called leaders are thick. |
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Post by GO30 on Jun 3, 2023 18:28:59 GMT 12
On RNZ, one of the Councilors say they get a $40mil dividend each year. So that is clearly wrong, but more to the point, if the capital value is $2.3 bil, then the return of $40mil is only 1.7% (if I got my zero's right, I'm not used to working in billions, aren't an SME owner). I deal in billions every day....opps sorry no that should be, every night, but then I wake up to find shit ain't like that.
Maybe there is some historical thingy where the Airport pays out to the Council each year no matter what. Seems a bit weird if there was though is my thinking. As far as I can see the Council is a shareholder just like the other 72%.
The Council does hold the biggest amount of shares at 18.09% valued at 2.3 billion notes.
6.96% @ 901million is JPMorgan Chase & Co, Private Banking and Investment Banking Investments
3.62% @ 469 million is BlackRock 3.2% @ 413 million is Vanguard 2.45% @ 317.5 million is ACC, the Accident Corp one
1.23 @ 159.8 million is Norges Bank Investment managment 0.7% @ 90.5 million is Australian Foundation Investment
Blackrock and Vanguard tend to be on their games and hold big chucks of the shares so that could indicate it's a good one to hold. I'd think with a Council having a big share holding that could be seen as a sign of stability and less chance of some crazy ivan calls, an investment plus for some.
But then 2.3 billion off loan/s surely has to mean
HOLY FUCK!!!!!!
Just had a suss to see if there was any info on what the council may pay to find out in 2020 it booked a 1.4 billion dollar lose due to playing with derivatives when trying to fix its borrowings interest rates. 1. fucking 4 billion, that's a massive cock up yet what did the media say? bugger all by the looks of it.
Anyway in the same thing it had this
So 10 billion debt means 435 million a year in interest costs at 4.35%. Assuming that bullshit rate still is in play then reducing the debt by 2 billion would mean a saving of 87 million in interest costs per annum. So if the 40 million a year dividend is real, selling and paying down the debt is close as 1 million dollars per week better on your wallet, not to mention it would buy a shit ton of picture hooks and other arty stuff
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