China Eastern Airlines narrow growth line to buy short term effect sell

China Eastern Airlines, which shares the 600591-CN and plans to finance supplementary liquidity for shares in Shanghai, has rallied 14% per cent after the resumption of shares this morning, but then the shock fell and the share price narrowed to only 5.17% to HK $1.83 and 48.38 million shares.　　Some of the big lines also commented on the short-term effect of the takeover and reiterated the stock's selling rating. Deutsche Bank released its latest report saying it maintained the stock's selling rating, with a target price of only HK $0.75, 16 times times the 10 expected earnings ratio, and a sharp discount of 60% from market prices.　　China Eastern Airlines to buy all of Shanghai Airlines and the issuance of new shares to help reduce the ratio of debt and the Shanghai market to reduce competition, but that the short-term synergy is small, also refers to the merger of the two airlines, China Eastern Airlines may not be laid off, still can not solve the cost of excess staff pressure. UBS also continued to comment on the sale of Eastern Airlines, with a target price of HK $0.5. Said China Eastern Airlines and the merger of the group after the weak balance sheet, so for the minority shareholders of China Eastern Airlines, the cash package is worrying. At the same time, the merger was carried out by way of a swap, and the price paid by China Eastern Airlines was higher than that of the airline's NAV, which might suggest that the merged group's balance sheet would create a huge goodwill. After the injection is expected, goodwill will account for more than 70% of the book value of Eastern Airlines in 2009.