We would love to hear your thoughts about our site and services, please take our survey here.
London South East prides itself on its community spirit, and in order to keep the chat section problem free, we ask all members to follow these simple rules. In these rules, we refer to ourselves as "we", "us", "our". The user of the website is referred to as "you" and "your".
By posting on our share chat boards you are agreeing to the following:
The IP address of all posts is recorded to aid in enforcing these conditions. As a user you agree to any information you have entered being stored in a database. You agree that we have the right to remove, edit, move or close any topic or board at any time should we see fit. You agree that we have the right to remove any post without notice. You agree that we have the right to suspend your account without notice.
Please note some users may not behave properly and may post content that is misleading, untrue or offensive.
It is not possible for us to fully monitor all content all of the time but where we have actually received notice of any content that is potentially misleading, untrue, offensive, unlawful, infringes third party rights or is potentially in breach of these terms and conditions, then we will review such content, decide whether to remove it from this website and act accordingly.
Premium Members are members that have a premium subscription with London South East. You can subscribe here.
London South East does not endorse such members, and posts should not be construed as advice and represent the opinions of the authors, not those of London South East Ltd, or its affiliates.
The UK Bus (London) operations are not especially exposed to short-term changes in macroeconomic conditions because the
business receives a fee from Transport for London for operating services irrespective of the passenger volumes on those services.
Its costs and in particular, labour costs, can vary due to macroeconomic changes and also, in the longer term, the level of services
that Transport for London offers for tender might be affected by the macroeconomy The contractual nature of the London bus business means its profitability has been much less affected by the COVID-19 situation than
the profitability of the regional bus business. While financial pressure on Transport for London does present risks for the business,
we have not significantly changed our London bus strategy.
There wasn't a lot of equity left here last time I looked. That and high debt is why this will keep being marked down. Rescue rights issue or D4E might become a necessity. Covid has fundamentally changed the sector and made this no longer inevitable.
Clearly the drop in share price is related to sentiment in the wider market regarding lockdown. However, SGC along with FGP,NEX,GOG seem to have been disproportionately effected. I just wonder how much of Mondays drop can be attributed to the DfT announcement that the taxpayer is effectively taking on the expenses for current rail franchises along with taking the revenue (such that it is atm).
This is effectively nationalisation of the rail network; is it not? See the following link...
https://uk.finance.yahoo.com/news/coronavirus-uk-railway-privatisation-nationalisation-public-160701896.html
So here's a thought. Perhaps SGC are being marked down along with the rail operators even though SGC do not own any rail franchise. These anomalies sometimes occur in the market especially as institutional investors can sometimes get lost in the news cycle rather than judge individual companies on their merits. If this corrects itself over the coming days we may possibly 'gap up' 10% or is that wishful thinking?
10% may not seem a lot given how much I am down on SGC already but I feel this company owes me something; so maybe a quick speculative buy tomorrow with a view to selling at the end of the week? I'm still a long term holder (people will continue to use buses long after Covid) but the opportunity for a short term trade is probably the only way of making some money in this market.
I remember the days where stagecoach lowest price was 12p a share away back 10 year plus I can see it going to these levels this year