From a quick back-of-the-envelope its hard to see how they would need to raise cash in the short or even medium term. It's also worth noting the claim came from Lincoln Stock Doctors rather than a more noted research house (imo)
From the half-year accounts to Dec 31 2010.
Cash = 722m Shares Issued = 2,210m So 31st Dec net cash per share = 34.9c
However, we should factor in other cash burns for this year: x- they have commitments to buy $500m of aeroplanes this year (although much of this will be dept funded). So lets assume $300m in purchases which is probably very conservative. x- they are also spending $30m on the new business-class upgrades. x- have flagged a MAX -$80m loss for the full year.
Now assuming all these were paid out in cash it would still leave $312m in the coffers.
Also from the 31st Dec half-yearly NTA per share was 41c or $906m in total. Now assuming they have a MAX loss of $80m this year, NTA would fall to 37.4c per share.
Little wonder that Dimensional, a value fund manager, went substantial on 29th March.
All imo, DYOR & good luck holders!
VBA Price at posting:
29.5¢ Sentiment: LT Buy Disclosure: Held
