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Post Info TOPIC: A closer look at Jet's share price
ABN397


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A closer look at Jet's share price
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Here is a summary of Jet Airway's share prices along with the Sensex.

It may be recalled that Jet Airways had an IPO in Feb 2005 and the first day of trading was 15-3-05. The issue price was 1100.

DATE JET PRICE SENSEX

15-03-05 1293 6752
31-03-05 1211 6492
30-06-05 1265 7193
30-09-05 1116 8634
31-12-05 1143 9397
31-03-06 982 11279
21-06-06 703 10040

In a nutshell, Sensex has risen by 49 % over this period while Jet's price has fallen by 46%. Deccan Aviation has gone one better by falling by a similar percentage in less than a month.
(Data from yahoo.com)


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the_380


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it means that 9W's prices have been inverse propotional to the BSE


I feel the story of 9W-S2 buyout was the key factor for the sharp decline in 9Ws shares price and even it was high pricedwhen its IPOs were out.


btw...there was a news that 9W was gonna launch its IPOs at LSE



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vivekman


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Yup, you will see a further drop in the share prices as the court proceedings drag on. Jet management should put this episode behind and look to consolidating their market share here.


They have carved a niche for themselves as the premium domestic airline with a lot of passenger amenities. They should cash in on this to further strengthen their position.



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the_380


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Dont u think Jet's shares were over-priced at the time of their IPOs



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ABN397


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the_380 wrote:
Dont u think Jet's shares were over-priced at the time of their IPOs


Yes, that is what many financial writers said at that time.

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HAWK21M


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The Public need 1-2 yrs to get their Confidence ion Aviation.


regds


MEL



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the_380


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There was a news article with a report anyone who has it please post it. It said that "aviation stocks can be the most stabilised stocks if they r not subjected to extreme market volatility".

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VABBy


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 With debacles created by the senior managements of airlines in pursuit of the goals of becoming global airline and then backing out from commitments how do u expect the invester to have confidence...


 On top of it the airport infrastructure is also not in a good shape so no doubt investing in aviation stocks in a risky proposition



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the_380


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But we are expecting airport infrastructure to improve after a few years so does that mean that even if the markets go up or down steeply the aviation stocks will have a good control over the rise or drop???

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VABBy


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the_380 wrote:

But we are expecting airport infrastructure to improve after a few years so does that mean that even if the markets go up or down steeply the aviation stocks will have a good control over the rise or drop???

 Nooo because airline stocks are always a risky proposition thanks to the long time they take to break even and due to long maturity period profits always take time..


 But the things doesnt seems to be much favourable now. The crude prices are at an all time high and doesnt look they would come down or something. The comptetion makes sure that each and every airline has to fight hard to catch even 1 customer...


This simply makes airline stocks a non favourable place especially small investors and FII,s who want stability...



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the_380


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BTW what do u think is tbe break-even time that IT will tke it first said 2008 but now it seems as if it is stepping back

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VABBy


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the_380 wrote:

BTW what do u think is tbe break-even time that IT will tke it first said 2008 but now it seems as if it is stepping back

 Well thats something which is personally beyond my scope. We need to get hold of an investment banker who would then study the investment made in the project, the depreciation, the revenue being generated.. Its complex a thing and even beyond the scope of this forum forget me as an individual...


 As far as IT breaking even in 2008 is concerned thats just simply plain mallya speak. And VM is good at it. No matter how things might be crap or difficult he would make it sound so simple that its just like box of choclates..


 If VM is thinking that just because his son has got a green card this would make DOT welcome him with open arms and allow him fly planes from JKF/EWR to India then i guess he is living in wonderland....  I am sure if Indian govt doesnt change the 5 year rule IT is in big trouble when widebody jets come unless he has the capability to market it services so well that those planes can be used on domestic routes....



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the_380


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Speaking of IT's wide-body jets i am sure he'll find a solution for them too either put them to domestic services or lease them out atleast he can earn something

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