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Hi 007 RIP,
...” to be able to work on all electric vehicles you have to be specifically trained and accredited and is a Hugh expense. ...”
Not to worry, I’m sure there’ll be a Grant available...
AT
Recovery only or jobs like punctures and flat batteries, we do not work on the high voltage electrical systems, fact.
Unfortunately to be able to work on all electric vehicles you have to be specifically trained and accredited and is a Hugh expense. The breakdown patrols are not allowed to work on the high voltage systems, in fact it is illegal to carry out work on these systems unless your accredited to do so. Being that the true full electric car is still some way off, it will probably be too late to benefit the AA.
The growth in electric vehicle is going to be good for the AA. Electric vehicles usually overestimate the range available and our congested roads drain batteries like water through a sieve. This will be exacerbated as elecric vehicles age (as do mobile phone batteries!). When the public come to realise this they will look to rescue organisations like the AA.
Thank you for explaining Rox.
With fewer “ pay for use account” breakdowns and more personal customers leaving because they have lost their job, the AA will now find it impossible to balance the books.
Hi NRL just read your question above.
Sometimes RI work but at the end of the day they are funded by us the PIs and we are diluted by the very fact that we are paying more £ to maintain the same % of the Company.
The problem with the AA is the debt is massive (£2.64BILLION) so we could not put a dent in that so it would be pointless. Also the price would discounted to say 15p and in my experience the share price always goes down to that anyway so lose lose. The AA is profitable so they have no reason to go this route which is why I would be so annoyed. The BOD might do it though just because they can.
Good morning everybody. Haven’t read it yet but any rumour of another bidder is good news for AA of course so fingers crossed.
Lockdown + Davidson Kempner = Blue week for the AA?
which sounds good?
dont have access but 1st paragraphs:
An aggressive US hedge fund could seek to join a takeover of the AA, the beleaguered car breakdown service.
Davidson Kempner, which has a 15% stake in the AA, is understood to have hired the investment bank Moelis to advise on options as talks drag on between the debt-laden company and two private equity suitors, Warburg Pincus and TowerBrook.
Lockdown means fewer breakdowns - while not really affecting renewals - and fewer insurance claims, so should be positive for the AA.
Meant to say though is the share price too low for a rights issue? IAG were criticised for waiting so long. If announced When share price is, for example, 22p and give a 35% discount to encourage shareholders to buy (as IAG did and I understand Whitbread did similar) is it worthwhile as new shares are at 15p each. People fear we are going to 15p anyway. Be interesting what share price is come first thing Wednesday post US election and market considered the lockdown for two days.
Is a rights issue that bad in the context of the AA? As well as ODX mentioned, consider IAG and Whitbread following their rights issues. AA is profitable, as shown by last set of results. In my mind, that differentiates it from the others. Profit was, from recollection, virtually same as 12 months ago. If RI monies used to reduce debt, does that mean if takeover collapses then lower debt means more likely to get funding and/or funding at a lower rate? Also means stronger negotiating position with future bidders. A bit like our motor love, I am advised that the debt is holding back share price so, in my mind, a RI to reduce the debt may not be that bad a thing. Please can Rox and 3300 explain shortcomings in the thought process if you disagree.
Hi 33 tbh if I wasn’t carrying such a big loss from the last 3 weeks here I would move more into Saga. All this daft over exaggerated virus will be a thing of the past soon you watch and travel shares will BOOM!!
hi Roxbury, yes I have a small investment here I am at a 28p average at the moment and will see how this plays out in November. as you rightly say with right issues the private investor is the last to find out. considering the turmoil this week though it seems to have held up at around 23p.
As you said right issues, paying to keep the lights on seems to be the norm at the moment, which in the short term will need to be done to survive for a lot of companies.but for the private investor its like dodging bullets. sadly oliver can only go to the table so many times before being told no more.
Hi Angio yes it was different with ODX because they were (and still are) debt free and the money raised was to double the test capacity by purchasing a new test machine and expand the faculties. What a lot of companies are doing now though is doing one to pay off debt or even worse still to keep the lights on. Problem we have here is we won’t know until it’s announced and more often than not it’s too late to sell up.
Are you invested in the AA?
hi everyonel, have to agree with roxburyhouse if a business is in distress and supporting it self through an ri I don't stay in, as an example rolls Royce. I sold in march at £5.4 if I had stayed in I would have been 50% down and had to have spent more on the ri to do it. On the other hand another example is odx I bought in to that one as there ri was to support investment for growth and that one has worked out ok at the moment. with the times we are in it has become difficult to decide on long term investments, so I would say be vigilant with the ball. good look all
Is a RI for me.
Morning 33.
Everyone is doing them and I just think they are a scam. The very idea of putting your hand back in your pocket and have to pay more hard earned £ for exactly the same % of the Company in shares that you had beforehand is just wrong IMO and should be regulated. To add insult to injury the latest twist is to dilute you by whatever and then “consolidate” the shares back to a little bit more to confuse you and treat PIs as if we are stupid
Hopefully it won’t come to that and we will get a decent offer. If not though I for one will be really pi**ed off if there is a RI.
Rant over! Ha ha