Dividends and Malaysia Airlines

The shooting down of the Malaysia Airlines was a terrible in many regards, particularly for the people. When a plane goes down it is easy to see how the world is connected as there were people from and had relationships to many countries around the world. The world should react and punish whoever gave orders to shoot the plane down – for there was a chain of command, it would be very hard to believe in someone making the decision to shoot on their accord. The airline business is a tough business to make money and Malaysia Airlines is no exception to the fierceness of the marketplace. The airline was bleeding red ink as people have been going to the super discount airlines. As a partially government owned airline, the government has the dual role of running an airline and ensuring people remain at their jobs and services to the airlines continue. Many government airlines find it very hard to balance, but they still want to ensure the airline runs smoothly. It is suspected in order to stay in business, the airline needs to restructure.

Linking to dividend stocks, the airline has not paid a dividend in years but when something bad happens opportunity can rise up. There is the opportunity to buy shares if desired, generally companies stock prices will bounce back to where they started. In terms of investing, in times of disasters, think of the humans first. Then think what is the opportunity and is it worth it as the price of the shares react to the disaster – usually they will have fallen. How was the bounce the previous time? is management handling the pressures? what is the outlook for the company? all questions that need to be asked before deciding to take a well educated investment. By not asking you are gambling and the rule of gambling is know when to hold and when to fold, or you still need to ask questions.

There are more questions than answers, till the next time – to raising questions

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