Abbott to sell Qantas at the Bottom.

Is Tony Abbott about to be mugged by the Board of Qantas.

QAN20140328
Given that the share price has fallen to 1/3 third of the price since the appointment of the CEO why hasn’t someone looked at selling the CEO.
Good business is not driving down the price with competitive practices that the current shareholders have paid for, then handing it over to foreign interest.
One would have to consider whether the share price decline has been orchestrated by the management, to force the arm of the Government to allow for the sale of it’s assets.
We know the management have been more competitive with sales but what about costs. Have they reduced their hours at work, if they have been working really hard to drive the price down perhaps they should have a few days off and let the business carry it’s self for a while. Qantas shares haven’t been below $2 since 1996 without half of this board at the helm, let alone the removal of QAN from the S&P/ASX50 on 21/3/2014.
QAN20140324B
The above chart shows the appointment time of the current Board. (Only 4 Members have any Airline experience and not 1 of the members holds a pilot licence or worked as a steward or Aircraft mechanic. Is it any wonder they are cannot communicate with the workforce.)
With the exclusion of the appointments from 2012 everybody else on the board has stood by to watch the price slide from above $3 to the current low. Didn’t the board notice any part of the $252 Million dollar Half Year loss as it was happening. Perhaps they were fiddling on the roof top, while the fire alarms were going off.
I put it to the Board that it has been the Mum and Dad investors and the Superannuation investment that has paid the price for you to compete without proper money management practices. After all that’s how you lose money by selling your goods for less then what they cost to produce.
“We have met these challenges head on. Over the past four years, we have been carrying out the biggest transformation since Qantas was privatised – cutting comparable unit costs1 by 19 per cent over four years, introducing new aircraft and technology on a large scale, modernising work practices and revitalising service. But this is not enough for the circumstances we now face.”
What guarantees are the Board going to give that the low prices and competitiveness of Qantas will remain under a new foreign ownership. What will become of the rural routes that Qantas provide as a sole carrier to remote locations. What will become of Qantas FIFO to remote locations.
Are the board refusing any bonuses and payouts until the price exceeds the level it was at when they were employed. You cant just run a company into the ground at the expense of the investors, sell it to foreign interest and put your hand out for money.
Alan Joyce was Employed shortly after the last great foreign takeover attempt, that drove the price to $5. Was he deliberately put in place to make the sale go through and force the arm of the Government.
It’s just unfortunate that Tony Abbott will ultimately be the fall guy who will be remembered as the guy that sold Qantas at the bottom.
Raef Mackay

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How have the markets changed in the last 300 years.

With the AUD running so high last year (2012) we traveled to EU and UK for a holiday. I bought all my souvenirs from the flea markets and second-hand shops. We don’t get traditional or historical things here in Australia. We left via Frankfurt and spent the day in town having a look at the local scene. I checked out some collectables shops and found one with heaps of old prints for sale. I bought a 300 year old print called Des Waerrelds …. “The actions and designs of the world go round as if in a mill.”    More Here.

As soon as I saw it I knew it was about the markets and how they were depicted years ago in fact around 1720. I was excited I had actually been wanting a book on trading from the 1800’s, but a picture tells a thousand words. Now days when I look at it, I quite often ask myself. “How have the markets changed in the last 300 years? ”

My thoughts only. Raef

DesWareldes-Print

What can make stock prices rise or fall?

There are many reason for prices to rise and fall. I often consider the stops above and or below the market before entering a trade or new position.

i.e. A trader buys a stock the first thing he does is place a stop loss just below the last pivot low. The second thing he does is either put his target a million miles in dream land or tells himself hes going to hold on until he sees a definite reason to exit.
What has happened here ? The trader that has all the confidence in the world of a stock rising has put a negative on that stock when it finally hits his stop he will sell out at the lowest price seen in weeks and all his fellow traders who have their stop there help him to drive down the price of the stock.
Or the reverse could be true.
A trader believes a stock is ready to collapse. He sells the stock short and puts a buy stop just above the market. He dreams about making his fortune on this very trade and retiring to the gold coast, so decides to not place a target and just let the money flood the trading account till it overflows. The market wanders around then a quick spike gets him buying the stock at new highs.

My opinion is higher prices beget higher prices and lower prices beget lower prices. If you enter a trade a Target and a Stop should be your first concern. If you only place a stop you are saying that you will only take a small profit or a loss. Have a target in mind and when the price gets there dont move it. You should even consider reducing any target by a little bit to allow for error. Book that profit and move onto your next trade.

My opinion only. Raef

PFG Best a time to reflect

It is unfortunate that my Broker PFG has been placed into liquidation. I have spent some time pondering Russell R. Wasendorf, Sr suicide attempt and have this resolution.

ALWAYS USE A STOP.

W.D.Gann notes in his book “45 Years In Wall Street”, the traders that made money and gave it back and those that kept it. GANN’s 3 never failing rules are.

1. Always use a stop

2. Always use a stop

3. Always use a stop.

The Risk disclosure statements you see on all trading sites and trading brokerages, express the risk of loss in monetary terms. But here we have the CEO of PFG  demonstrating that the risk of loss can be far greater than money and can result in the loss of life. My question is where did Wasendorf place his stop. If his stop was placed correctly he would have come forward and reduced the size of risk in the early stages. The numbers that are coming out are in the $200,000,000. Even with an extravagant lifestyle I find it hard to believe that anyone could spend this amount of money without waving a flag. However in todays wild swinging markets this sum of money could be lost in a matter of months. Writing options or trading large futures contracts.

W.D.Gann claims that after the years he spent in Wall St his most valuable possession is TIME.

I for one would not trade my time here for all the money in the world, I will always use a stop.

My thoughts only. Raef Mackay.

GC120627

Gold still showing support. Gold got its big boost last year from this point. Could we see a massive down thrust into the depths of despair. Possible but where would they get enough gold from to sell to the market?