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The last 18 months the SP was driven based on the news and not on the financial results. I think most of the news like vaccine, reopening are announced which means the SP should start to react based on results now.
Although we all see the demand coming in next year and the market is forward looking, we are still not there. The company is still loosing money. This means the SP will struggle in a short term but I expect to soar from January/February
I hope it will not go down too much although this would be an opportunity for those who are waiting to get in
As you have just posted the FT quoted the €190m pw cash operating cost figure but said "The company is burning through €190m in cash a week, a figure that does not take incoming revenue into account."
So your latest cash burn figure is NOT €190m per week as you state as you have also admitted it is the cash burn figure that doesn't take into account revenue. If you take into account revenue you get the figures reported in the accounts which are less than 50m euros per week as previously stated and easily verifiable.
Overall the cash reserves actually increased in H1 but this was down to net new borrowings.
I don't know what Q3 will bring but see no reason why it should be a multiple of Q1 or Q2.
Again, you are confusing your definitions. Cash burn is defined as the rate of spending. You want to change the definition to offset income. That is a different measure, it is not cash burn. The cash burn rate from the end of July is 190mil a week and I am not aware of an update. If you want to express the finances instead as a net cash figure, then you will need to demonstrate where IAG is getting a whopping great big 140mil a week from? Again, If IAG were taking in that level of cash, the sp would be very much higher than it is at the moment. Given the how much the EU market has been restricted with the sabotaging, and travel lists, and the virtually non-existent long haul, where exactly has IAG been getting the cash income from? If the net spending was only 50mil a week, it would be wall to wall across the media and oft repeated here!!!!
BB, if you divide £140m by 350000, that equates to £400. DYOR
OK sundenza, I can confirm your calculator can do simple arithmetic. Do those numbers have any particular relevance to anything? Is this your salary, salary man? lol
I am not confusing the terms. It's simple.
You spend cash, you receive cash and the difference means you either add to, or need to draw from, cash reserves. You are quoting a figure with only spending cash in, I'm quoting one that includes receiving cash too. At the moment IAG is spending more than it is receiving by around €50m per week (over whole of H1).
But don't take my word for it, just look in the accounts. It's all there including the figures from tickets sales.
BB, as your income might just be the uk state pension, that does not mean everyone else gets that little!!!
Back to your £140m a week...each passenger would pay on average £400 per flown sector, doable!! As my first/club flight prices range from £3k to £10k a pop, you will find that my calculator works...you eed to get new batteries for yrs, me think!
Your post shows how clever you are!!! dyor.
However you want to call it in terms of net, where is the 150mil a week being generated? You are trying to claim that IAG has only been losing 50mil a week in the operating environment it has had for the last 6 months or so? So the huge drop EU operation and almost no long haul only creates a loss of 50mil. Seriously? A drop in capacity of the order of, what, 70% for EU and 90% long haul and only a net loss of 50mil?
Again, if that was the case, there would be no talk of refinancing by the city or the company and the sp would be at least double. At the very least!
142p cometh
RI also cometh.
"Back to your £140m a week."
?
What are you talking about? What 140m a week?
BB, you were talking about it , not me! 13.43 post!! you suffer from memory loss!
Green line again= little fugassin frustration is growing. His reputation is in tatters!
"where is the 150mil a week being generated"
- Total Revenue H1 = 2.2bn euros (about half from passenger sales)
- Additional cash from advance ticket sales not included in revenue = just under 1bn euros
- Sale of properties = 0.2bn euros
This gives most of what you are looking for (only 'need' €140m per week)
Going red again.lol
Wheres the 200p zelda? You're more rattled that a rattle can. What a du m bo
€195m per week cash burn.
Refinancing package to be announced.
When is 200p arriving Zelda?
What an embarrassed.
Fugazi1: it is your wild dream, it won’t fall to 142p before results!
“€195m per week cash burn“
And still you repeat this lie?
Rns by Friday ??
€195m cash burn each week. It was alluded that ii could be closer to €270m
RI needed to keep company afloat.
Strong Sell.
Ps, had a nice 1.5% profitable trade today...was obvious of a rise up until midday uk.
Hospitality trade is rocketing.
Another 7k profit already this week.
See how its done Zelda!
Well, ignore the fact it is in terms of Euros for a European company, 350,000 passengers PER WEEK SINCE MAY?????????
And you have then all paying on average £400 (454E) per flight. Virtually no long haul, you expect 350,000 passengers to be paying on average 454 per seat on intra EU flights? Every week. In a market competing with Ryanair, Easy J, Whizz air and then the rest of the carriers??? As you read this to yourself, can you see what utter nonsense your figures are??? 350,000 passengers paying well above business fare prices. Per week. As I said, if IAG was taking in that sort of revenue during the travel lockdown then there would be no issues at all with the sp and it would would multiples what it is now.
Speaking of which, a quick check of the sp and there is virtually no reaction to the budget speech. No specific support for the airline sector. Probability of a fund raise resulting in dilution goes up to 99% now.
And for this 300p by year end. I'm sure with what was known at that time of estimation at what must have been very early in the year that would have seemed reasonable. It is such a bottom scraper to take start of year predictions and repeat them as still live at the end of the year. A great deal of negatives have impacted the industry over the year so you are only going to make a fool of yourself by repeating that 300p, if I did say that - I'd love to see the quote because I would most likely have put caveats around it and other ifs and buts to qualify it.
sightwatcher
Posts: 301
Price: 160.46
No Opinion
RE: Where is the 200p?Today 15:27
Fugazi1: it is your wild dream, it won’t fall to 142p before results!
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It's going to 142p for sure.
I'm now thinking iag will be a penny share. IAG is in a very competitive market, to be honest is a lost cause with the huge weight of debt. UK Govt may have to bail them out - part nationalisation?!
FTSE & WALL St sinking now, iag it be deep red tomorrow, the price is lagging.
RI VS part nationalisation, which is the better of 2 evils? RI probably but both highly dilutive.
I recommend a Strong Sell until the mist clears. Or like me, trade it like a trading chip as that's all it is now.
Well it has been to around 190 P ?
sightwatcher
Posts: 301
Price: 160.56
No Opinion
RE: Where is the 200p?Today 15:56
Well it has been to around 190 P ?
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It's also been to 81p. Strong chance of another go at that support!
The resident clown is posting loads! it can only mean one thing, this is a BUY. Ahahahah..
USA opening soon. big spike coming. DYOR.
sundezena
Posts: 1,147
Price: 160.96No Opinion
RE: Where is the 200p?Today 16:17
this is a BUY. Ahahahah..
USA opening soon. big spike coming. DYOR.
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An no rampers challenge that nonsence?
There is an RI coming, price will spike for sure, to the down side.