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@Teddy "I have heard often on this BB that IAG should soothe shareholders concerns and offer some comfort. This is not going to happen and until the union stuff is sorted everything will be conveyed in the worst possible light."
I agree 100%. People who get spooked by bad news / bad rumours on this share right now do not understand what is going on. It's in the company's interest right now to let those bad rumours run rather than to bring out good news to refute them. One of those rare times in the life of a company when bad news is good news, when it doesn't hurt if the market thinks you are in trouble.
this share could be 250+ by Tuesday. Equally it could be 170 by Tuesday. None of us know how it will pan out. History tells us however that it always rises from the drops & that's good enough for me!
This is Money is a financial column in one of our newspapers, The Mail on Sunday.
Imo it was very lazy journalism, no quotes from IAG, no substance. Just a guess.
Strangely they wrote virtually word for word article on Rolls Royce last Sunday. Again saying MS were involved. Again no quotes or confirmation from RR, just guessing again. It's almost identical in its tone and substance to the IAG piece. Lazy journalism imo.
I dont know how to put up a link, but Google This is money article on RR it comes up straight away.
Have a good Saturday people.
This is right Teddy. People dooming & glooming about 10p drop days should look at the last 3 months of performance of this share on a daily or 2-3 day basis. E.g. friday 22.5 low of 189, gapped up over weekend to trade high 236 26th; 311-361 one of the June heady days. This share will take off with vigour soon!
Zumore, I agree to a point but if you were such an ******** of a boss and kept attacking the pay and conditions that you had negotiated with your staff over the years, your staff would no doubt hate you too!
When I read the BAbetrayal hashtag, the responses on MP Hugh Merriman twitter, i read pure hatred aimed towards BA. Amazingly most of those posts are from BA staff. They show absolute bile towards them campaigning for them to lose landing slots.
So zero sympathy from me. I would hate somebody to work for me if they hated my company so much.
@TMT: it makes good business sense to place yourself in the best possible situation to enter into negotiations. The unions and the government are both after them but “ It is hard to kick a
Man when he is down” I have heard often on this BB that IAG should soothe shareholders concerns and offer some comfort. This is not going to happen and until the union stuff is sorted everything will be conveyed in the worst possible light. I believe IAG have orchestrated this situation, I would do the same. Those figures in July will be horrible, then the following week the letters are going out to the staff and In the present situation poor IAG are in survival mood so leave us alone.
I will hold for 5 years so I know I will at least double my money if not treble, the two largest operating costs running an airline are wages and oil, think about it? Our competitors are floundering, the Americans are looking inwards, the Europeans have governments sitting on their boards and the low costs are closing hubs. I can understand short and medium investors are scared of this share, but come September the 1st it will be 300p: There will be days in the next seven weeks when you see this share jump 10% plus.
PS: Don’t let the Covid scaremongers get you down, come the 25th of July we can do everything that we could in December, as I have said before we didn’t build those Nightingale hospitals for nothing.
@Teddy "That said the situation is playing right into WW’s hands, a big **** storm facilitates negotiation."
Yeah, so do you think WW had someone drop the suggestion in that reporter's ear just to create the noise and facilitate the negotiation? Or is that just too Machiavellian?
Curses, it was one journalist and coupled with the fact that IAG invited GS and MS to advise on cash flow like all FTSE organisations do on a regular basis the markets put 2 and 2 together and got 5. That said the situation is playing right into WW’s hands, a big **** storm facilitates negotiation.
Where did that rights issue talk come from anyway? The only news I can find is this one from thisismoney. Who are these guys? Is this even a credible source?
@Moonman, I'm absolutely certain WW and the Board of Directors have agreed he's going to be the fall guy for the union fight. He stayed on to do it, has probably hated the union for years and wants payback.
The stink of a rights issue that excludes PIs would stick to the BOD, too.
There's already been some very negative press on this: https://www.telegraph.co.uk/investing/shares/scandal-looms-diy-investors-ignored-firms-sell-shares-cheap/
They can only get away with it if it is an emergency. I think it would be hard for IAG to say they are in an emergency situation. I just don't see it happening.
TakingMyTime, I get your theory over Willie Walsh and negative PR over a R.I that excludes private investors, but don't forget that WW sails off into the sunset very soon so he probably couldn't care less who he upsets (in the spirit of Michael O'Leary) as he could happily be the fall guy and the new chap could distance themselves from the decision very easily.
It seems some other big institutions have gone for cheaper credit while it's there. But on reflection as Qatar own 25%, wouldn't they finance any on hlgoing liquidity issues? I seem to remember seeing an article somewhere stating that?
Damn I wished I'd averaged down now!
I appreciate the explanation of how an a RI actually works. I'm relatively new to shares/stocks, so presumed it wasn't good news, tbh some of the comments on here made it sound as if it was a disaster for the sp and for holder's.
I saw similar comments on the RR board as well btw.
In real terms, what is the likelihood of that happening? Looking at Q1 statement it seems unlikely, but I suppose it depends on the amount of cash burn v cost savings in Q2?
Thanks for all the info, I'm learning fast!
I agree, I don't get why they would do a rights issue when they have so many cheap credit lines available.. The cost of debt is always lower than the cost of equity, but especially at this time, the cost of debt is way lower than the cost of equity, which is huge now.
A chance, sure. Likely? Not very. If there is a rights issue, is it likely that private investors will be excluded? There's a chance, but not very likely.
Reasons? I don't think a rights issue is needed. Still sufficient cash and still resources to draw on.
Why is a RI that excludes PI unlikely? Reputation. BA is getting a huge black eye in the British press right now over the unions. Everyone else is making thousands redundant but BA is catching all the flak. WW obviously thinks it is worth the reputational hit to take on the unions right now, but that gives him little room for other unpopular moves. If he treats PIs poorly, it will blow up in his face. He can't afford more enemies right now.
In my view, the risk of a rights issue is low but the risk of a rights issue that excludes PIs is very, very low indeed.
Got you. In my opinion, either they closed the terms of the fundraising while ago (perhaps before that news came out) or it doesn't make sense to do it now.. at the current SP, to raise a proper amount of money they would have to dilute massively the SP.. I'm not Brit, what's the general consensus there? Is there a real chance this offer will happen?
It is a question of why to include us, much easier for bookmakers to call up stakeholders and institutions to canvass and raise that way, with the public, it is a hassle to raise little and more expensive. I imagine we will be notified via an RNS £££ raised at x price, representing a discount of x% to xdate closing price.....done!
Monkeys, I know the new shares will be issued at a discount, that's why I said we won't lose any money (if we are part of the fundraising). But why do you think we will not be included in the fundraising?
1 I doubt public will be included in the fundraising.
2 It will typically be below the market price at the prevailing time.
The trades mean very little, it is just a simple bid/offer software collating. For example, you can go on bids to buy or simply take the offer price. MM can do the same.
@Dagger, why is the possibility of a rights issue stopping you from averaging down? I mean I think that scenario is already factored in the SP. So if a rights issue actually happens you wouldn't lose any more money - or you only lose more money if you don't exercise them. If you exercise them, the devaluation you see on your current holdings is offset by the appreciation of the rights issue you exercise (tbe SP will theoretically stay in the weighted average point).
Still more buys than sells for 5 days in a row
# Trades 3,371
Vol. Sold 2,101,572
Sold Value £4m
Vol. Bought 2,322,903
Bought Value £5m
DaggerMal I'm same as you lol - we need Cristal balls
I got my average down to 220 but wifes more like 242 so its tempting
Fact is I'm look at 550 in 2022/23 so its just greed if I top up lol
I'' wait a little more & if I've missed the 20x window then I'm still making money back :O)
Tbh Chris. I'm so tempted to top up, but as I mentioned earlier in my other post, it's the possibility of a RI that's stopping me. I dont think they will, with the liquidity they have access to and the backing of Qatar but it's that possibility is stopping me topping up. Put my mind at rest Chris! Lol
Long now at 295 30k. Back to work now and days moving as normal. Nothing but good from now on.