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I agree with Ford, having held this share for quite a while now, although it may take off in the future , i have not gained anything.
No Divi, No share appreciation...
So i think i'm going to sell on the next small rise... the CEO does not give me any confidence to hold to the share any longer..
Hey fordm
So for the sake of disclosure I’m about 30% down on IAG at the moment and like you I’m very annoyed with the notion of missing out on other stock … especially as I was given advice by more experienced investors to look at the numbers in more detail. Knowing what I know now about the debt I wouldn’t have invested as my plans were to hold for three years… I started in 2020. I’ve made good returns elsewhere because of investing in lower debt recovery stocks and also some AI and tech related stocks. I don’t think the boat has been missed on other stocks … personally believe there’s still lots of room for growth in blue chips stocks like Microsoft, Google and amazon which haven’t seen the AI thrust just yet … even Nvidia which for some may seem like a high I think there is room to grow. On the more conventional side you’ve got card factory… low debt levels, history of dividend, likely reinstatement of dividends due to certain loans being extinguished as of jan 2024 and a positive revenue story … so opportunity is out there.
Re my short term comment I was more thinking “from now”… so my language could have been better. But I basically mean short term as in the 3 to 6 months from now… medium 6 months to 18months from now and long term thereafter.
Not worried about the drop year on year … it’s expected as there was a lack of info around performance… we have great evidence of IAG (and the sector as a whole) being very bouyant. Plus I’ve been there with EasyJet and seen how they’ve recovered (to an extent … they still have to room I think).
If you got a year to play with, depending on your percentage loss, there’s good reason to stick around. Personally I’m out at 1.75 as I can’t wait two years … I think 1.75 by 6 months is more than achievable and then I’m out
@Bhaveen
You quoted "especially as I was given advice by more experienced investors to look at the numbers in more detail. Knowing what I know now about the debt I wouldn’t have invested as my plans were to hold for three years"
Surely if you had looked at the numbers in more detail you would have understood the debt situation?
Yes if I checked the numbers and did some simple projectons I would have noted IAG was a much longer play and I wouldn’t have invested … as I didn’t want that long a time frame. Sadly my thinking was more about market sentiment and comparing covid to other stock market crashes when Actually it was quite different. But I don’t think I was the only one. Are you saying you analysed debt levels, profitability sill made the investment yet you see frustrated and surprised with the current lack of upwards share price movement?
No, I didnt analyse debt levels. Simply in IAG as the price was a screaming buy at the time. Averaging 120.
All analyst targets after yesterday's results:
JP Morgan - Sell - (what are they thinking ? it will go down to 1 ?, that will be 4.92 B market cap for a company that generates 3.5B)
Bernstein - Buy - TP 200
RBC - Neutral - The target price is unchanged at GBX 200
Barclays - Buy - 260
My suggestion to the market is at least keep the YTD positive which means above 155 range. 148 is foolishness for a company that generates 3.5 Billion pounds but has a market capitalisation of 7.5 Billion. 3 years back 150 was reasonable but not in 2024.
Cosnidering the buy was at 120 then yes I would say its aged well
bhaveen.
i did the same, looked for a covid recovery stocks and followed them, i really did not do more than look at the forecasts , precovid share price and dilution to get to a 2.4 share price on post covid recovery.
quite clearly the busineses is performing at that lebvel know, and normally the stock price beats it there, as you need to be in early to get the gain. so only once in i have done more digging thinking way is that is not moveing.
the biggest thing i have found it the company just does not have a clear stratergy on how it going to make money. it seems to just use vague terms like maximise customer experiance.... which is just bull**** as far a a bp is conserned.
at the sametime, my retirement date has moved forward more than i expected so i find myself in this slow moveing stock , that i am sure will recover, but neeeding to start thinking much harder about adressing my portfolio in income baring steady stocks for the long term and retirement in the next 12-18mths....
gggrrr
i do think the smt can do more to progress the share price, which it needs to do to for aquistions.. i just dont think it is being run very dynamically at the moment at all. there focus is sustainability / diversity / customer service which would be same for any public body... but they are a compnay not a compnay body...
but i did not look at this until the recovery was not happening, which really is my bad.
Sundezena : you love to blink lol you flutterer
Well the business would have a five year plan with top level goals… im not sure if they’ve shared their business ambitions … I haven’t looked at it deeply yet … it’s on my list of things to do…. I’m just holding because I see many more positives then negatives … and I have to give some credit to management with the recent results… though the future will depend on how they invest their money and what the next two quarters look like results wise as i also think the market wants some consistency before signals of confidence are truly embedded. What I do believe is that demand will stay robust and that itself should make it easier for airlines to show decent numbers
Yep keep banging on ablout debt on a see saw debt wiuld be at the top and profit bottom , we must reduce by 20 % per year for this to swiiiiiiiiiiiiing back to profit !!!!
Apolagies for typo im no keyboard warrior
Mararab, you may not be jumping off this year bud. You and I are stuck here for a while.
I just bought another chunk..call me crazy but this is far too low IMHO. We will see...when everyone is running, BUY..Staying low for a bit longer does not mean its a bad thing..It has helped me in buying more at a cheaper price. Alwas look at the positive side of it. GLA and DYOR.
Fordum I might just pop out withmy pfofits and buy lloyds before ex dididate make a grand or 2 on divis and come back in to iag if sp stays same
Yea but if you buy lloyds you will probably have to sell them at a loss compared to what you buy them for. It's not a stock that will rise.
Thriller40 really !!! over last 15 years my average is 4.45% income on dividends
Fordm ….How could you exclude me from your possee??? I’ll be drawing my pension before I escape IAG claw like grasp on my hard earned pennies…..
Back to my dribble corner I go 😧
Desertsands, sorry bud, purely accidental. I will add you forthwith and bobbins and tricky too.
Closed at £1.46.75
Another day sinking ship.
The markets lost confidence in this company. Its a choice between investing elsewhere or double down on this stock and hope it starts to turn round.
I think holders here need to have a very long-term outlook re dividends. I’ve been saying for a three years that the yield is unlikely to return to pre-Covid levels (circa 5%) until the end of the decade. In the meantime, of course, we will almost certainly see capital growth and modest dividends, but there is also the RI dilution to factor in. Add to that the usual airline risk factors (terrorism, strikes, fuel prices), along with the probable permanent reduction in business travel and it’s not hard to find reasons to put one’s money elsewhere.
Geez, GLG shorts increased yet again yesterday