CanOz
Home runs feel good, but base hits pay bills!
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- 11 July 2006
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Seems to be the standout for future potential in a turbulent section of the market
The REX stock price is starting to show some life, my bet is that it will slowly drift up to around $1.20 before the end of the year.
Cheers
And the discount to NTA doesn't mean much in this case. The assets may be worth what is listed on the books, but when you put them to use you get very little in return...
Unless management start selling off planes and returning funds that is.
Subsidy for regional air services reinstated after pressure from carriers.
The Abbott government has finally reinstated a subsidy scheme for airlines flying on marginal regional routes following pressure from carriers such as Regional Express.
Read more: http://www.smh.com.au/business/avia...m-carriers-20140915-10h7hu.html#ixzz3DjZRiveF
Source: The Daily Examiner, 29 Aug 14
REX pulls more profit than airline giants Qantas and Virgin
Marco Magasic
THE economic climate is so toxic that REX airlines pulled a bigger profit last financial year than Qantas and Virgin executive chairman Lim Kim Hai says.
"The Australian economy continued to deteriorate over the period and REX lost 38,000 passengers, or a reduction of 3.4%," Mr Lim said. "The environment is so toxic that incredible as it sounds, REX is not only the most profitable passenger airline group for the third consecutive year, it has more accumulated profit before tax than Qantas or
Virgin Australia over the last nine years.
"As foreshadowed in my earlier warnings to the Federal Government, aviation in Australia is in deep crisis with Qantas and Virgin Australia losing a combined $4.4 billion at pre-tax level for the 2014 financial year. "Regional aviation is even harder hit. "We saw another two carriers collapse in the last nine months."
He said about 16 regional Australian airlines had shut down since September 11, some with decades of history.
Mr Lim said the price of fuel and the carbon tax had made things difficult to operate. "On top of that, we had the burden of increased government taxes in the form of the carbon tax and a significant increase in the fuel levy to fund the Civil Aviation Safety Authority," Mr Lim said.
"All of these taxes implemented by the previous Federal Government just add more nails in the coffin of the aviation industry."
He said REX would not issue dividends for this year, but would make it up once the airline recovered
The REX stock price is starting to show some life, my bet is that it will slowly drift up to around $1.20 before the end of the year.
Anybody willing to provide a TA view? I bought in April based on the discount to NTA and management.
Cheers
I see REX has got to $1.10 maybe it will get to $1.20 at the end of 2015! It is a pity i sold out in November at $1.02 but there were too many other opportunities tempting me at the time.
I think Rex is a good stock to look at again, reasons are below:
Best not to divulge that …. the constabulary may find meUnsure on the area you are talking about
Regional Express (REX) has today signed a Commonwealth Grant Agreement under the COVID-19 Regional Airline Network Support program announced by Deputy Prime Minister, the Hon Michael McCormack, on 28 March 2020. Under the program, regional airline carriers will be provided assistance to maintain a minimal weekly schedule to regional and remote ports. The RANS program will provide funding for up to six months with an initial approval for six weeks. Under the Grant Agreement, Rex will receive funding to operate 1-2 return services a week to most destinations on the Rex network.
It makes sense, remote areas still require a service, even if it is cut back.The third force gets an upgrade
Most medical specialists with practices in regional cities commute to these places from their capital city bases. As well, the wheels of govt must still reach out. And all the other services, like legal/ justiceIt makes sense, remote areas still require a service, even if it is cut back.
Interesting post Donna, as I said it does make complete sense, your post highlights it.Most medical specialists with practices in regional cities commute to these places from their capital city bases. As well, the wheels of govt must still reach out. And all the other services.
Of the 76 service requests, some 38 were approved.
WA (services regulated by state govt) gets one flight a week ex-Perth to Albany, Esperance and Carnarvon.
Qld (services regulated by state govt) gets a mix, but all One flight a week on Northern routes ex Cairns and Townsville, as well as ex-Brisbane. Most are multi-stop routes out west.
Qld (unregulated): one a week Townsville-Cairns, Cairns-Mt Isa, Cairns-Bamaga
SA (unregulated) get most services, one flight a week; Pt Lincoln, Mt Gambier, Broken Hill, Ceduna, Whyalla, Kangaroo Is.
Vic (unregulated) get all services, 1-2 flights a week: Mildura, King Is/ Burnie, Albury/ Wagga, Merimbula
NSW (unregulated): 1-2 a week to most places, Cooma, Moruya/Merimbula, Broken Hill/Dubbo, Orange, Bathurst/Parkes, Grafton/Lismore, Wagga, Albury, Griffiths/Narrandera,
but here's the joke:Interesting post Donna, as I said it does make complete sense, your post highlights it.
REX had a very nice recovery over the last 4 weeks or so, 40c - 85c, leaving out the 'wicks' on daily candles.
With government support, looks like one to check out in another downwave?
Over to Joe Aston for a bit of colour:Rex’s response to that – lodged late on Wednesday afternoon – was hardly any better. “In this particular instance Rex believed that information about possible city operations was not sufficiently definitive to constitute material information”.
REX gave an interview to a major daily last week that it was "thinking about flights between capital cities" but forgot to inform the market by way of an Announcement.
Over to Joe Aston for a bit of colour:
"Not sufficiently definitive?! Sharp had identified the cost ($200 million), the method of fundraising (“through the sale of new shares in Rex”), the number of planes (10), their routes (“The plan is to start flying between Sydney, Melbourne, Brisbane, Adelaide and Perth”), the timeline (“early next year”) and the number of interested parties (“we have been talking to half a dozen private equity and investment banking entities… and will narrow that down to one in the next three weeks or so”). Oh, and Rex has already discussed amending its flying license with the Commonwealth’s air safety regulator. Any more definitive and Rex would be selling tickets already!
The whole sequence lays out a stupendous failure of elementary public company compliance by the airline’s leadership."
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