Agree with your comments Mogie - I'm nursing my wounds here and the last thing I want to read is someone being smug - really helpful and inconsiderate - this should be a supportive forum not a medium to gloat
I'm was only looking to post the good ones lol ! ..................... to be fair reading across a lot of the papers , there was nothing too damning at all, but just get the feeling that the "benefit of the doubt" that it had , is slowly being taken away, Was always gonna happen as the "recovery" moved along , but still some good stuff in there but they are right, more pressure now :-)
The pressure is on for Thomas Cook this summer, says Investec
Investec has kept a 'hold' rating on tour operator Thomas Cook, saying that near-term earnings risks are high after the company's first-half results.
The broker said that UK summer trading "gives us a cause for concern" given that a strong summer is needed from the company if it is to meet the market's profit forecasts.
First-half operating losses improved by 14% to £187m, from a loss of £217m the previous year, with a 7% revenue decline offset by cost efficiencies.
However, Investec Analyst James Hollins said he predicts a 35% increase in annual operating profits for the year ending September 2014, which "places a significant emphasis on strong summer trading to achieve our [...] estimate of £354m (and consensus of £362m)".
"Given the difficult comps and summer UK trading that is tracking, in our view, below expectation (bookings and yields both down 1% and 3% respectively), the pressure is on," he said.
Hollins also said that Thomas Cook has "teased the market" since last year with details of its so-called 'Wave 2' 2018 targets for cost and profit improvement initiatives.
"The announced Wave 2 figure of £400m is a touch below previous guidance (over £440m), if we are being picky."
The analyst pointed out that Thomas Cook's shares have tracked around his 180p target price since the start of 2014.
"There is enough in the statement to keep us at a 'hold', but nothing yet to make us scream 'buy' from the rooftops."
After teetering on the brink of collapse just three years ago, the recovery at Thomas Cook (TCG) continues to go from strength to strength.
Jefferies analyst Mark Irvine-Fortescue retained a ‘buy’ recommendation and increased the target price from 200p to 230p. Shares yesterday fell 12.6% to 156.1p.
‘Thomas Cook is on a multi-year earnings upgrade path and we see [the first half] update as the next catalyst,’ he said.
He noted the company was not only trading in line with expectations but a further £20 million of cost savings had been identified in a cost-cutting exercise known as ‘wave 1’. A second exercise – ‘wave 2’ – is expected to identify £150 million of benefits for the company.
‘We continue to see better value at Thomas Cook than TUI Travel,’ said Irvine-Fortescue. ‘We think that its superior growth prospects and self-help opportunities mean that the current valuation discount [of TUI] is difficult to justify.’
Lovely Evening, just been sitting in the garden thinking about the week (had better) , with a nice lime cordial (yea right ! ) and something struck me again about last nights posts , even for some of the issues that i may have highlited , Harriet and her charisma is actually carrying a lot of this and if she became incapacitated in any way, then i think we would really have problems , she has earned some respect out there , better get some bubble wrap i think, have a good weekend guys :-)
Yep Mike , agree,as i said earlier, the presentation was slightly lacking and it could have been "spun" a lot better , i don't know if you watched it, but they didn't control the conversation at times, move off of Egypt and more on the good times in the short term particulary in Europe , which is looking strong, and much less 2018 focused , all that seemed to be saying was i need more time ? Also its ok banging on about the new app this and web that, and it may indeed transform the business over a period , but that really wasn't what was needed here.......................also, even with the RNS, i had the feeling that "less is more" ! there seemed to be too much detail for a half year report , even compared to TT, mind you that didn't go down a storm either , maybe i'm wrong on that , but it did seem to got them more tied up in more minutiae in the q&a than was necessary and give the poor FD some media/presentation support, not his fault, but he needs some back up, just my view .
I don't do name calling or insults, but maybe a little training might be advised to our execs on how to present figures in a more positive manner - from memory the share price has not done so well on the last few occasions our "top team" presented figures, but without being overdramatic, helping to wipe off ONE FIFTH of a company's value in 30 hours is really taking the you know what!! None of us know for sure what will happen next week, or next month, if we did would ANY ONE OF US STILL BE HOLDING today??
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