Airliners-India.com

deaphen · Member Joined: 19 Dec 2006 Posts: 933 Location: India

Hi all
as you will be aware, kingfisher is going to be coming out with its initial public offering. I was wondering has anyone else thought of picking some up once it opens up? what do you think its future will be.

My predictions are that it may just be a good buy because:
1. In the near future, i see kingfisher to be like Virgin in the UK.
2. They plan to cover major destinations around the world.
3. Aviation industry in india is HUGE.

I just want your opinion on what you think their ipo will be like and if there is any point in purchasing some shares.

What is the normal internation market trend for airlines.. are they safe players or very risky?

regards
nitin

the_380 · Posted: Thu Dec 21, 2006 8:08 pm Post subject:

Learned a lot about shares from dad...
Posting my opinions only:
Kingfisher IPOs can be worth investing over the long run provided Mallya breakevens quickly. You never know if he doesn't do well and realises his expenses are quite high on IT then he might quit the business overnight... cancel his orders, there are many airlines to pick up those aircarfts and even lease some but get away from Airline business. Thats the primary fear in a private company which might take more time than stated to earn profits.
As Deaphen pointed out they will be exapanding their services, so there might be a good potential in their shares say after 2-3 years.
Also if you're quite good on your finances then you should just pick up a few shares at the start, on the basis of their performence take your future steps.
Must point out the fact that shares in aviation market are pretty unstable than in the other sectors.9W opened its high priced stocks at Rs 1100 now they're down to below Rs 600 (haven't tracked), similarly SG opened at 100 digit now their down to a 2 digit figure at Rs 60 or maybe lower and everyone knows what happened with DN's IPOs
just my opinion... don't kill me later Razz

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AKLDELNonstop · Member Joined: 19 Dec 2006 Posts: 1066 Location: Auckland

Well for people looking for short term gains. No dont invest in any airline shares. For those who are prepared to wait for four or five years, I think IT will be a good investment.

I think Mallya will survive the shake out if one happens that is. Well his ego will make him do his best to survive the shakeout. Once he has survived and is allowed to go international, he will begin to rule.

Cheers
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HAWK21M · Posted: Fri Dec 22, 2006 1:16 pm Post subject:

I personally believe Airlines are never a good Investment ever.DON'T bother.Unless there is a dramatic Improvement in the future.
regds
MEL
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VABBy · Member Joined: 19 Dec 2006 Posts: 823 Location: DEL

Wanna invest in stocks play safe guys . Go in for mutual funds which are more of a safer bet than direct share buying.. Airline stocks naaaaa
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AKLDELNonstop · Member Joined: 19 Dec 2006 Posts: 1066 Location: Auckland

VABBy what are the returns like in Mutual Funds in India?
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himmat01 · Member Joined: 19 Dec 2006 Posts: 1392 Location: DEL

AKLDELNonstop · Member Joined: 19 Dec 2006 Posts: 1066 Location: Auckland

Thats phenomenal Himmat. A gain of around 9-12% is considered to be decent in more developed markets.
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Geniuses are always misunderstood in their lifetimes.

himmat01 · Member Joined: 19 Dec 2006 Posts: 1392 Location: DEL

AKLDELNonstop · Member Joined: 19 Dec 2006 Posts: 1066 Location: Auckland

karatecatman · Guest

And here is what Mallya himself has to say!!!

www.uniindia.com
Kingfisher may break even in 2008-09: Mallya
New Delhi, Dec 23 (UNI)
Kingfisher Airlines Chairman Vijay Mallya has said his airline will not fold up despite incurring losses although it may take a year longer than originally planned to break even, considering the ‘‘current bloodbath’’ in the Indian civil aviation sector.
In an interview to Karan Thapar for the Devil’s Advocate programme on CNN-IBN, Mallya said though he would like to stick to the original target of financial year 2008-09 for the airline to break even, ’’.... but with the current bloodbath, it might take may be one year longer’’.
He insisted that it would not be beyond 2009.
‘‘Absolutely not. Because Kingfisher Airlines has successfully demonstrated and achieved much higher ticket values than the competition and we have excellent load factors,’’ he said.
Admitting that Kingfisher was incurring losses, Mallya however, said the airline would ‘‘never go belly up’’ despite the bloodbath in the civil aviation sector, which he predicted would result in a shakeout.
‘‘We have a wonderful product, which is now rated as the best in the Indian skies,’’ he said.
Mallya insisted floating the airlines was not a mistake, despite increasing losses, saying ‘‘we have the staying power and the sustenance that it takes.’’
The UB Group Chairman said there have been expressions of interest from several investors, but he had been holding them at bay.

the_380 · Posted: Sat Dec 23, 2006 4:30 pm Post subject:

AKLDELNonstop · Member Joined: 19 Dec 2006 Posts: 1066 Location: Auckland

Is it possible to access Karan Thapar's intv of Mallya anywhere? Would like to read/see it.

Thanks
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Aiel · Member Joined: 19 Dec 2006 Posts: 927 Location: Bangalore

AKLDELNonstop · Member Joined: 19 Dec 2006 Posts: 1066 Location: Auckland

Aiel,

Thanks for that. Well Mallya keeps saying that his airline will survive, but he never says how and his losses seem to keep mounting. I guess he is hoping for the shakeout sooner than later.

Interesting times ahead.

Cheers
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the_380 · Posted: Mon Dec 25, 2006 3:35 pm Post subject:

Just say the repeat of Mallya on Devil's Advocate yesterday...
neways thanks for the link Aiel
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karatecatman · Guest

Interesting item on BBC TV today, Dec. 25.
It said that UB is finalising a deal for acquiring Scotch distiller Whyte and Mackay. Whyte & Mackay chairman Vivian Imerman had initially offered a sale price of 600 million pounds, which Mallya refused.
Mallya had originally valued the deal at 400 million pounds and then raised it to 473 million pounds in November. The final figure settled for is around 500 million pounds and deal to be signed in ealry Jan 2007.
Mallya is very keen to get hold of Whyte & Mackay’s stocks of aged Scotch whisky and plans to borrow cash heavily against United Spirits’ balance sheet to finance the transaction. Company sources say his UB Group may raise further funds by placing up to 18 percent of its stock on the market and hinted at resources from Kingfisher Airlines also. (Exact words from the BBC television report).
The deal will give Mallya’s United Breweries, two more brands, Dalmore whisky and Vladivar vodka.

AKLDELNonstop · Member Joined: 19 Dec 2006 Posts: 1066 Location: Auckland

He looks like he is going to become like the Mittal of Booze Laughing

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Geniuses are always misunderstood in their lifetimes.

Aiel · Member Joined: 19 Dec 2006 Posts: 927 Location: Bangalore

JumboJet · Posted: Mon Dec 25, 2006 8:47 pm Post subject:

AKLDELNonstop · Member Joined: 19 Dec 2006 Posts: 1066 Location: Auckland

the_380 · Posted: Tue Dec 26, 2006 3:40 pm Post subject:

Boeing7xx · Member Joined: 23 Dec 2006 Posts: 477 Location: WSSS

Q : How does the promoter of an airline become a millionaire?
A : You start with a billion!

Aiel · Member Joined: 19 Dec 2006 Posts: 927 Location: Bangalore

ABN397 · Member Joined: 27 Dec 2006 Posts: 113 Location: India

Boeing7xx · Member Joined: 23 Dec 2006 Posts: 477 Location: WSSS

GO BEERJET GO!!!!!!

AKLDELNonstop · Member Joined: 19 Dec 2006 Posts: 1066 Location: Auckland

Thanks for the MF info guys.
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Geniuses are always misunderstood in their lifetimes.

the_380 · Posted: Thu Dec 28, 2006 4:53 pm Post subject:

I can also remember a news article saying that Mallya was interested in selling shrares at Indian and Singapore stock markets too...
But if he doesn't do well... considering the losses from rising ATF prices, competition from other airlines, etc he might decide not to enter the Singapore markets
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