timtam wrote:Those shareholders that took up the Qantas share offer are having the last laugh - they are sitting on a nice 22c/share profit as of today.
Thats the difference between mum and dad investors who dont really know what they are doing and professional investors.
Everyone agrees shares are best treated as a long-term investment so a 22c gain on day one is neither here nor there and 1/3 of this gain flows from the discount on issue anyway. The prospective huge company losses that QAN will incur in the next few years means there is little likelihood of QAN paying franked dividends for the foreseeable future and this will weigh heavier on the decisions of private investors than a one day gain.
Very few investors would be interested in going overweight in airlines or airports at the moment so shortfall is not surprising.