The airline’s profit is a quarter of what it was ten years ago. If it had not managed to slash its staff costs, Qantas would have made a loss this year. Read article.
Roger Montgomery's popular value investing guide book for the stock market shares his tightly-protected stock investing rules for long-term value investing that you must follow to reproduce his excellent stock market returns.
I suppose those who own Qantas because ‘it pays a good dividend’ won’t be happy today.
In some ways I feel a bit sorry for airline execs in that no matter how good a job they do, they’re still going to go backwards. Your assessment Roger, (which I’m sure we all could have predicted almost word for word) was pretty scathing – I wonder whether Joyce himself secretly agrees or whether he actually thinks Qantas is going as well as he tried to portray. The lack of that dividend might give a clue as to what he and the board really think.
Greg,
The business boat you get into is more important than who’s rowing.
These guys are not rowing. They are bailing…continuously and furiously!
Hi Roger,
Well, that disappearing dividend seems to add credibility to your statement (on page 230) that there is no such thing as an ‘income stock’.
Regards,
Craig.
Indeed! No such thing as a ‘defensive’ stock, or a ‘cyclica’l stock or a ‘balanced portfolio’ either. Nonsense!