Sorry, I'm new to this whole thing but I'm just wondering what Change in substantial holding means. I saw it in one of the announcement from Qantas Airways. I'm also not understanding why Preliminary Traffiic and Capacity Statistics are announced too and is it important? Is it going to affect share prices or influence investment decisions?
I don't understand company announcements
- Thread starter whyhello
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The statistics show passenger numbers etc. You can follow their bread and butter business over time. If you notice their number of flights not changing but passenger numbers increasing and without knowing the details you would think it is an improvement in the business.
A substantial holding is "Person/company holding more than 5% of a company's voting rights." For many it may not mean much but imagine
A substantial holding is "Person/company holding more than 5% of a company's voting rights." For many it may not mean much but imagine
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Change in substantial holding normally means that a holder is either getting out or starting to accumulate.
It might explain a recent share price decline or increase.
Keeping a close eye on current holders is pretty important (maybe more so in US markets) since it can give early signals to potential m&a or activist action.
It might explain a recent share price decline or increase.
Keeping a close eye on current holders is pretty important (maybe more so in US markets) since it can give early signals to potential m&a or activist action.
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Once an investor holds 5% of a company's shares, it's considered a "substantial holding". Regulations require that any change of that percentage be reported within 3 days, so other investors/ traders get an idea of the substantial holder's intention: Are they buying more? Are they selling down? Or are they simply moving stock around for their own trading purposes? Such information tells the astute observer a lot about shifting supply and demand, which does have an influence on the share price
The statistics you mention are specific to airlines; if an airline's plane seats are only 50% full, they'll be less profitable than at 80 or 90%. Paying bums on seats are what it's all about.
Other companies need to inform the Market about events that have a potential impact on their specific profitability. Check comparable announcements made by Myer or Harvey Norman: for them, it's all about market share, turnover and profit margins.
