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Just to add as well, that I would expect all of this to effect our bottom line too, it is all about how much this will have effected us by. Hopefully not by enough to cause too much. But there will be some. We'll have to wait until we see the trading update to have that information.
Being optimistic, it won't be enough to cause problems in servicing our debt, but if that is the case, then perhaps a small short term cut in divvi to meet that shortfall would, in my view be prudent for the greater good, and when the assumed conditions improve then a BAU policy is put back in place then job done.
Sometimes short term pain is necessary for long-term gain.
Hold our nerve & weather the storm.
You might be right Barchid.
All of this Coronnavirus & weather conditions ball locks is going to have a detrimental effect on our profits. We can all see that coming to be fair. It all boils down to how much of a hit we end up taking. Those that are into TUI & Dart Group I think would be worried about this perhaps just slightly more than us, as people may well be less inclined to travel abroad or cancel their holidays and possibly have a staycation instead, this could be useful to Marston's pubs in key areas.
fairdealer
Deflation is always possible but with the infrastructure spend UK plc is looking at I suspect we will be at the back of the queue for that.
However my fear is that as MARS are now publicly announcing debt reduction targets a divi cut could be low hanging fruit in order to assist this policy. Neverthekess when I raised this possibility it was not taken on board, I suspect it could happen, don't want it to but I can see how it could occur.
Barchid as indicated a day or 2 ago the div could be an easy target. The market, I suggest is not confident and even high div stcoks are not showing resilience even these " Hurricane Conditions".
Is it conceivable in order to rebuild growth, Negative rates are going to prevail??
Appleby
Excuse my gallows humour here but out of interest I looked at the HL 3 month share chart and their 3 month high to todays price is looking even worse than MARS !
I am sure there are many bargains to be picked up today on anything other than a short term view but my main worry with MARS is will their board decide that with even a 7.5p annual divi failing to prop up the price why not cut it and retain the cash ?
I know the view on this bulletin board is that the divi is safe but I do have my doubts, we are in uncharted territory now.
@ Leas.
Ouch. Painful.
You're right about lady luck too. That's how it is for investors like ourselves with limited funds to put away. I doubt there aremany Jordan Belfort's among us but still.
Trent, last year I opened an investment ISA with SVS securities. 20k into a Colombian oil company. 3 months later SVS went into admin and my ability to trade the shares were scuppered. My intention was to sell and buy DTG. When Thomas Cook failed DTG doubled in price. Needless to say I was gutted as I could have come away with a very healthy profit.
6 months later the Colombian Oil company was taken over at a much greater price than I paid for the shares. I have been grumbling for weeks that I cannot get to my cash until the funds are with another broker which is likely to be later next month.
These bb's are full of 'wannabe city slickers' full of well intended advice but the bottom line is 'lady luck' as always has the upper hand.
Leas , I am thinking the same with 90p support level taken out this is in unknown territory . This is a good company with good products being effected by external factors . Hopefully the shareprice destruction will force change on the board of directors that can only be good long term .
@ Leas.
Yes you might well be right. I'm only best placed to grab a couple of hundred or so at the moment anyway, so I'll hang fire for a while.
Trent, I would hold off with any 'cheeky top ups' at the moment. I'm looking to reinvest on the way back up. I will be happy not to catch the bottom but a buying opportunity will present itself.
Who is a conspiracy theorist??
Just checked 3 month price , share price down 29.04% source Hargreaves Lansdowne , that is a shocking wealth destruction .
Share price is below my buy in target , however I to think this has further down to go, also watching ds smith, nrr, tbcg for long term holds , income and recovery over time.
dyor , good luck all
This bloody virus thing isn't going anywhere any time soon I don't think.
Not to p**s on anyone's parade, but I think that sp's are going to take more of a beasting over the short term, particularly for companies like ours in the leisure sector. It's just a case of bite the bullet and hold your nerve.
Dart Group, (the owners of Jet2) have took a large portion up the Jacksy over the past 2-3 days. Dropping approx £2.50 off it's share price. TUI have not fared much better, MAB have dropped another 4.5p in the last 3/4 of an hour today already. I could go on. We just need to hold our nerve. Maybe this is a good opportunity for a cheeky top up, if in a position to do so.
Appleby
I just looked at the chart and see what you mean, but we are perilously close to the 80p's which would be a "hang on to our hats" situation, if we go there.
Sep4 2018 seemed to have been the low close at 89.85 if my chart is correct ?
Worryingly though, in this fall the 8%+ yield does not seem to be acting as a brake, so yes, a sustained break down below 90p is serious.
Still this week we are firmly into fear mode, quite possibly next week could be steadier, let us hope !
Looking at charts solid support at 90p , if that support gives , its plumbing new depths .
I may do that Trent. Right now everything will drop whether good or bad. Be like Buffet!
@ Lurka
I remember one of my cheeky top ups at 89p a while back.
Looking at 2 year chart a baseline is 90p, anyone hold that far back maybe one should wait longer. I bought at abt 103 last may. Would there be any buyers at that level?