This one belongs to sub 10.
Hope we don't get here before the new shares start trading!
For the speculators, please keep off! And this you can take to the bank!

Let the people who want to be heroes keep buying KQ.i have been saying this since the share was 30+ when they announced plans to do a rights issue.This is a massive dilution.Going back to under 10 and it will be hard to move this shares up.Airlines just like utilities(kengen,kplc,part of transcentury) require alot of capital to run.

If local shareholding in KQ reduces to less than 51%, KQ would loose the national flag carrier status. What are the specific airline rights that it would loose? Ama with the steady deregulation and liberalization of the airline industry, permitting greater Freedoms of the air with the signing of the Open Skies agreement has rendered the designation of "flag carriers" less important in the current age?

"flag carrier" -definition (Wikipedia’s.)

“The term is also used loosely to refer to any dominant or major airline sized carrier in a country, or in reference to a mainline carrier with a history of a state sponsored legacy of airline service, even long after their privatization.”

http://en.wikipedia.org/wiki/Flag_carrier

So, it still will retain -the national flag carrier status.

Post rights, the share should trade at a PE of >12 to reflect the expected future incomes. Remember the capital will be deployed in coming days and did not contribute to the 2011 earnings. Ope the IM will give a picture of how much they expect the earnings to grow as the ambitious expansion plan starts rolling. We can then calculate the forward PE