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I'm not sure. Transport operators have low margins in usual time and are now, with the huge reduction in passenger demand due to COVID-19, totally reliant on government subsidies continue to operate their services. No idea if the old world will ever return or how long the government subsidies will go on for.
Agreed! Unless there is something we don’t know about the company or cataclysmic with the economy way beyond what is already expected, I would’ve thought this will recover strongly within 18-24 months. Topped up yesterday on this dip.
Funny you should say that, my buy limit was triggered earlier.
With this at these bargain basement levels. Stagecoach is no longer shorted, certainly not in any significant way. There has been a gradual reduction in short held positions since 2017. https://shorttracker.co.uk/company/GB00B6YTLS95/ Only one way this can go now once the MMs have stopped messing around.
Trades reported in blue or text indicate whether the trade was executed above or below the spread mid-price. While this is generally a good indication of buy/sell, it is not always the case. SGC generally has a narrow spread so be careful in assuming that a trade appearing in blue text is necessarily a buy.
Also, a market maker may have a large sell order to fill behind the scenes so it can make sense to maintain or even lower the share price to encourage lots of buys. This is more likely to be the case in lightly traded, illiquid stocks. Unlikely to be the case here.
I'm not saying either of the above is the reason for your observation. I'm just pointing out some possible reasons. There may be others.
Its been doing that for the past 3 days, it just doesn't make sense
I was always under the impression the major factor behind a stocks price, is the buy/sell ratios. More people buying, price goes up.
Why isn't this happening with SGC? Unless I'm reading the numbers totally wrong, many more are buying in than selling!?
It looks like the 50p floor has become a ceiling. I think the only thing that will get this moving now is a vaccine. Until then there could be opportunities to average down.
60,000 sells to 459,000 buys just like yesterday and the SP drops again. I would love to know what little game the MM's are playing with this stock.
on the roller coaster i see, would appear some ups and downs still to come before we clear 50 for the last time, slightly surprised i was expecting a slow creeping rise above 50 without too much dropping back until above 55.
Despite us all knowing the government is not going to let public transport fail, it seems the market is not yet prepared to trust in that
I can't imagine many unemployed people taking a daily commute into the city they don't have a job in....or to get the bus to go to the shops with no money to spend. Personally I see stagecoach filling the gaps of local companies going under and providing for school runs as the big picture. But then its like saying KFC will start doing well if chicken cottage collapsed . Everything is relative isn't it
Expect the worst possible future and SGC will do well! Millions of unemployed will sell their cars and use the bus. For the remaining employed driving cars into cities will be too expensive so they will also use the bus. The future is bright!
16.19%
ouch, i guess their results weren't so good, haven't read the RNS yet, but they were on my watch list as a potential investment in the hopes of a bounce back, but that's looking a pretty hefty drop
good feeling on a stagecoach bus this morning . it's nice to know i have enough invested here to say i own my seat..
@Jcreek, I reckon most have a fairly positive opinion on SGC its just a waiting game at the moment. It will bounce back to £1+ but that may be into next year or when govt advice on public transport changes.
I have highlighted the many pros of this stock in recent posts but unfortunately the big Covid negative is still with us and while there are concerns over second wave its not going to go near pre Covid heights.
However you have asked for thoughts and mine is still strong buy!
Try not to get too rampy........anything that is going to happen will take time..... be that months or years...
I have a good feeling about SGC right now, and that article posted on Monday is just making it stronger..
Someone give me a push either way, throw a few more grand at them or leave it for now?
I’ve noticed a change in the public mood since the use of face masks became widespread. Regardless of the effectiveness of the masks, it feels as if ordinary people are becoming more confident going about their day to day lives. You could say the face mask is acting as a kind of security blanket.
“I’m safe now that I’m wearing the mask. I can see the other people on the bus wearing masks so we’re all in it together.”
I say this as someone who has never taken this flu seriously from day one. I’m not going to live my life in fear of a flu with a 0.001% death rate. However, unlike the libertarians in the US, I will wear a mask in public because it is polite and considerate of others. It feels like the ‘British’ thing to do.
Good read, I found it very positive! more of this please and less of constant speculative negativity.
https://seekingalpha.com/article/4366988-stagecoach-is-due-for-bounce-up
I believe the funding is only to break even point for all current registered services. Profit margins can be maintained on all other contracts etc... therefore not a massively profitable time but at all the same not running services at a loss regardless of passenger numbers.
Would stagecoach still be making a loss or profit with government funding ?. I know services are also getting slightly busier.
Spot on castle!
low debt, high liquidity, decent results, more govt support, ultra low SP..... Im throwing everything at this and have no concerns. I recently asked all for a better investment right now and got no response, says it all for me!
The funding will benefit all operators and although it is only to plug the gap in the revenue it certainly gives all a massive reassurance. Fair play to the govt for ensuring services will be maintained and Operators futures are protected during this uncertain time. Dividends will remain suspended for now but the future is definitely not as bad as current SPs suggest and SGC are in a good position to rise out of pandemic much better than all big Groups.
Being UK BUS only is an advantage right now!
https://www.lse.co.uk/news/SGC/update-go-ahead-and-firstgroup-welcome-further-funding-for-uk-buses-dq8cbewgvuelfa6.html
although not directly connected to us in that it seems the funding is only going to the two groups mentioned, it does kind of reinforce my thoughts that the government is going to shore up public transport where needed, it'll mean a suspension of dividend for companies accepting assistance, but should stop values falling too badly.