[VintageKrug]

*rollseyes*

[FormerlyDoS]

“*rollseyes*”

Well, is that a yes or a no?

[BigDog.]

Good to see KrugHandles is picking up little business acumen wrt Vueling, albeit on the shirt tails from my posts of how it can be leveraged along with its excellent existing leadership and desirable location in the eminently more prosperous region of northern Spain.

[FormerlyDoS]

A little being the operative word. Suggesting that the board of a corporation might deliberately depress the share price deliberately is more than naive.

[SimonS1]

Surprised you are not preoccupied by the IAG earnings announcement, VK.

Operating loss up 10%, ignoring another €311K of write offs for Iberia.

Share price down 2.75% at 2.50pm on a day when the FTSE is up.

Good to see your man Walsh doing his stuff.

[VintageKrug]

Nice to see the usual suspects posting yet more unrelenting negativity.

Just the same as was posted when BA made a profit; the usual suspects’ record never changes and is discredited as a consequence.

Every company has its ups and downs; there’s lots of potential at Iberia once the plan is executed.

Silly season usually gets worse around this time on a Friday, so I’ll retire to the Bar now. I shall enjoy my happy lemon!

[SimonS1]

Oh dear VK. Grapes tasting a bit sour today it would appear? Let’s hope it’s not bitter lemon in your glass as well.

[AnthonyDunn]

In the interest of balance and to put IAG’s quarterly earnings into perspective, how about Lufthansa AG’s recently reported results:

http://www.bloomberg.com/news/2013-05-02/lufthansa-has-first-quarter-loss-on-reorganization-costs.html

That is a €359million loss, unchanged from last year – and LH is planning some additional 3,500 job cuts. The passenger airline lost €363million with cargo and other operations reporting positive results. I have a recollection that AF/KL has also reported a substantial Q1 loss. Does this mean that LH’s directors and CEO should not have taken over/taken stakes in LX/OS et al? And should not the LH CEO be flayed alive for having failed to react pre-emptively to changes in the wider €-zone by substantially reducing LH employees T&Cs before now?

Yes, IB is clearly a total basket case and it is deeply regrettable that BA may have overpaid in return for the merger. Having just witnessed Snr Management’s company report a US$3Billion loss for last year and a US$14Bn impairment (I will repeat that: an impairment/write-off of fourteen billion US dollars) arising from the acquisition of Alcan at the height of the market. Her employer’s response is to announce its intention of cutting some 45% of its headquarters staff, as part of a US$5Billion cost cutting campaign.

I am sadly only too well aware that investment bankers can massively mis-price deals and boards of directors can be comprehensively hoodwinked by their advisers. Just as long as they collect their advisory fees however…! Oh, and that pure hubris can lead CEOs into believing that they “have” to do a massive deal as justification for their own massively inflated salaries – as was recently highlighted by a BBC Radio 4 programme looking into how CEOs justify their earnings. And as I learned whilst at London Business School.

[BigDog.]

AnthonyDunn@17:04
Methinks like for like then one should use the €670million loss for the quarter IAG reported which includes €311million exceptional item (ie an additional cost on top of the huge exceptional item EO2012).

I switch between Radio 2 and 4. Jeremy Vine on R2 last week, with subject experts hosted discussion on the traits psychopaths share with (10% I think of) senior Bankers/Dealers/CEOs

Characteristics include
•Superficial charm and average intelligence.
•Absence of delusions and other signs of irrational thinking.
•Absence of nervousness or neurotic manifestations.
•Unreliability.
•Untruthfulness and insincerity.
•Lack of remorse or shame.
•Antisocial behavior without apparent compunction.
•Poor judgement and failure to learn from experience.
•Pathological egocentricity and incapacity to love.
•General poverty in major affective reactions.
•Specific loss of insight.
•Unresponsiveness in general interpersonal relations.
•Fantastic and uninviting behavior with drink, and sometimes without.
•Grandiose feeling of how important s/he is
• Pathological liar – lies when there is no need to
• Manipulates others, cunning
• Lacks empathy
• Does not accept responsibility for his/her actions

mmm

[SimonS1]

Interesting that when LH released those results the share price went UP by almost 6%.

When BA announced today’s results the share price went DOWN by 1.6% even though markets were up.

Analysts rarely get these things wrong.

[BigDog.]

SimonS1 – 10/05/2013 18:28 GMT

+1

… unless they have been fed misinformation or have been deprived of timely information.

[londonlad]

“Analysts rarely get these things wrong.”

Ha ha, have you read ‘City Boy’.

[SimonS1]

Yes, a bit like reading The Sun I thought. A good departure lounge read – sex, drugs etc etc.

[Binman62]

Every company has its ups and downs;……

BA more than most:)

[BigDog.]

Walsh was reckless to say the least pushing ahead with the IB merger, enriching himself in the process at significant cost to BA stakeholders. the little man of questionable intellect trusting his own beliefs that the dire Spanish situation was merely “perceived”. In reality it goes from bad to worse….

http://blogs.telegraph.co.uk/finance/jeremywarner/100024476/spain-is-officially-insolvent-get-your-money-out-while-you-still-can/

Even if Al Baker saves Walsh’s bacon in the short term, the long term systemic issues Spain and Iberia face will be a huge financial drain for years. If Walsh looks elsewhere to raise much needed funds, as his earlier attempt at a bond issue failed, then Al Baker could bring further financial influence to bear which will lead to …. the wolf taking a seat at the table?

[Author]

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