Reasons for AIZ:ASX/AIR:ANSE being a highly risky stock to Buy.
1. Unhealthy Balance Sheet
AIZ:ASX has current liabilities of NZ$2.10 billion compare to current net assets NZ$1.01 billion, that means Air New Zealand has more than 50% debt than total assets. There is a high risk of company getting liquidated due to huge amount of net debt compare to net assets.
2. Insiders have sold more shares in last 12 months.
Insiders have sold more shares in last 12 months that means insiders are losing confidence in the company.
3. Air New Zealand is currently loss making Airline.
Past Annual Earning Growth was -27.5%
Pat 5 Years Annual Earning Growth was -264.7%
Note: This is not a financial advice. Please make your own decision.