If this hits, or even comes near to 140 by end of next week on sentiment alone (i.e. without MOD contract news etc) this would be a very solid foundation for future rises. So very positive indeed
Looking very positive
Looks set to continue this upward trend and pick up pace, could see 140 by the end of next week.
RE: Ok day here
There’s no such thing as a buy-and-forget investment in the airline sector but, when we find ourselves apparently mid-macro cycle as now, the economic backdrop seems relatively benign for a shorter-term investment. What better candidate for a punt in the industry than a once down-on-its-luck airline that’s in the middle of a turnaround and expansion programme with a determination to adapt to changing business conditions in the industry in order to succeed? Such is Flybe Group (LSE: FLYB), which resides in the FTSE Small Cap index. Crashed and burned Flybe arrived on the stock market at the end of 2010 and the shares crashed and burned, falling from around 320p to 40p by April 2013. There was trouble in the business such as unprofitable flying routes, spare aircraft capacity and inefficient systems and operational methods. The firm was making losses, and its constrained cash flow and weak balance sheet forced it to finance its aircraft with expensive lease arrangements rather than financially efficient loans. An unvirtuous circle set in that created even deeper losses — things looked bleak and something had to change if the company was to survive. Conditions were perfect for change and reform, and the share price was sufficiently bombed-out for new investors to benefit from a turnaround situation – a great set-up for a turnaround investment as long as something drives change and, with Flybe, it has. Turning things around A determination to reform seized the directors at Flybe and things started to improve. 2013 saw change at the top with a new chief executive and a new chairman who brought a new clarity for the vision of the enterprise. Flybe wants to be Europe’s best regional airline, it reckons, and improving financial results in 2013 suggest it is now heading in the right direction. The shares began to respond to the firm’s changing fortunes, moving from 40p in June 2013 to just under 150p in April 2014. Investors seeing the potential last year have done well, but the best may yet be to come, as during March this year Flybe raised around £150 million in a fully underwritten placing and open offer. That’s quite a big capital injection for a firm with a market capitalisation of £262 million at today’s 121p share price, but it puts a floor under the weakness of Flybe’s capital structure and provides the funds for the firm to drive through the financial and operational efficiencies it needs to prosper. Flying high Flybe nudged into profitability with its full-year results released in March this year. City analysts following the firm predict a 500% increase in pre-tax profits by March 2016, which puts the firm on a forward P/E rating under seven. Naturally the shares fell back a bit when the fundraising was announced, but over the last few days they’ve been creeping up. My guess is that the shares have further to travel as operational efficiencies and
Ok day here
On a day when the FTSE is down and it's confirmed we will start bombing the terrorist scum, FLYB has bucked the trend and made a small gain.
RE: FLYB Chart Very Bullish Sign.....
Buy Flybe at 116.5p – price target 250p (short term) 500p (3 years) BY CHRIS OIL | SUNDAY 21 SEPTEMBER 2014 74 Disclosure: I own shares in one or more of the stocks mentioned. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from ShareProphets). I have no business relationship with any company whose stock is mentioned in this article. Following my recovery play holding of last week I promised to reveal my second private non-oil share this week – here goes it is Flybe (FLYB). This is a perfect hedge for anyone with large oil investments or a recovery play in its own right. It’s a sort of EasyJet in the making with a £250 million market cap -I reckon that should be well over £1 billion. Flybe is a United Kingdom based regional airline company with flying operations based out of Britain and also in Finland through a jv- it had a fleet of 96 aircraft at the time of its accounts. However the recent announcement of downsizing the fleet comes as the airline has been pushing through a turnaround plan designed to restore it to profitable growth. By moving from heavy fuel using jets to more efficient Bombardier aircraft should enhance future profitability. The City is starting to get excited about major expansion plans at London City Airport and with three new routes launched October 27th to Exeter combined with new flights to Manchester, passenger numbers should exceed three quarters of a million in 2015. Conservative broker forecasts are for £592 million in revenue and a £20 million pre-tax profit in the year to 31 March 2015 and the following year £629 million in revenue with a profit of £50 million. In the long term this is another EasyJet in the making and a lower risk than any oil plays. So why are the shares so undervalued? The firm nearly went bust under the last management however the balance sheet has been sorted thanks to a placing at 110p and that £150 million of cash provides a floor in the share price and makes the company one of the best financed businesses around today. The aim is to deploy capital to own aircraft with secured loans rather than via full operating leases. Given the new management are ex EasyJet they know exactly what to do to drive Flybe back to historical highs. This is a real turnaround situation on multiple fronts including cutting uneconomic routes and slashing 1,100 jobs – total annualised cost savings to date are £70 million. I have been to a few investor presentations and CEO Saad Hammand wants to turn everything purple, offering free chocolates and a 60 minute promise on delayed flights to drive increasing repeat business. Remember that the big boys are leaving this market open to Flybe to gain market share as they have moved to compete with each other on overseas destinations. TTV adverts are getting more exposure as well which all helps increase the brand
RE: FLYB Chart Very Bullish Sign.....
Welcome Mick, thanks for sharing your techs, it looked like it would take off a few weeks ago after a double bottom but it transpired there was a large ii order being filled so they held it down but I agree it looks set to go now. GL
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