Interesting article, esp. to TCG shareholders, on above website (their main page and also business section), entitled, " Corporate Riders Seek Brexit Bargains in Britain" Reminds me of an article i read a few months ago in one of the share magazines, which quoted some fund manager or other who was positive on TCG in the long-term but was fearful that they might get taken over at the current low price.
Yeah, I've also heard that profit warnings come in threes, but hopefully the current s/p is reflective of this possibility. Many companies it seems, esp. travel/ leisure stocks, are issuing profit warnings: Easyjet, Lufthansa and BA's owner all have. So it's hardly surprising that TCG have, and may issue another one later in the year. Just hunker down and wait for some sort of normality to return to the Middle East and north Africa (i now think it will take 24-36 months rather than the 12 months i put in my post below). I don't think the management are to blame, it's just the crazy way the world is at the moment. GLA
A second profit warning will be no surprise to me,and for the market,hence the recent SP retrace! (broadly in the price already...) what is more of a worry to me is the fact that those warning normally coming in 3.....so,YES TCG shares might face a very difficult time...HOWEVER , IMHO going bust is very unlikely.
There is an article about thomas cook which states that they are expecting to receive a second profit warning from tc management this week, although this should be expected considering all the external factors... my question is... although may sound silly is there any chance tcg could go bust?, having suffered this when I held game shares a number of years ago I'm just looking to for reassurance and if anyone else is thinking the same?
With the world being as it is, I think long-term holders of TC are just going to have to put the tin helmet on and hunker down and pop their head back up in about 12 months (assuming no further Fosun interest). What can TC do in a world where 3 of its biggest markets (Turkey, Tunisia and Egypt) have been decimated by ISIS ? Of course its figures are going to be badly hit. It can carry on developing the company and the product, as it has recently been doing (new planes and tarting up existing ones; new flights to America and Caribbean); i think it will be spending money on the shops next. ISIS is getting weaker and weaker every day in Syria and Iraq. Hopefully in 12 months' time its caliphate straddling these two countries will be greatly reduced and its reach and influence will have greatly diminished and Egypt, Turkey and Tunisia will be back on the radar of the UK tourist. I wouldn't like to see anything like the airline being flogged off--seems a bit desperate and short-term to me.
Let's just hope there's some news on the possible aircraft sale, and that tcg still meet its minimum expectations and/or maybe some foshun developments ... or maybe us tcg holders are asking for too much
Taking everything into consideration ( very sad to say ) I now expect next week's Q3 results are going to be poor. I think the recent hot spell in the UK is the final nail in the coffin ( so to speak ). Customers have delayed booking due to world events and a late surge in summer bookings is what TCG would be relying on to boost earnings but sadly the heatwave here means many will now be holidaying in the UK instead of going abroad. And as we all know , travel companies rely on this time of year to make the bulk of their profit. Sorry to be negative but I am a realist and the facts of the matter is that the situation for TCG at the moment is very bad.
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