Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
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Posts on this site do affect share prices, sometimes a lot.
Clearly posts are monitored by bigger players to judge sentiment and sometimes get information that has leaked.
I am totally convinced of this.
NorthScot you’ve changed your tune? You trying to influence the SP to jump back in again lol
Travel restrictions are lifted for fully-vaccinated travellers, Investors are now looking at IAG that have potentially been oversold
LA - know what you're saying. It's like Lloyds - they regularly jump up early doors , only to retreat through the day. As a holder I am often tempted to sell, and then buy back, but the dealing costs (mostly the 0.5% purchase tax) make it not worthwhile.
The house always wins.
In general, these shares tend to overshoot at opening but start a sudden partial rebound from maybe 8:30....
Up to you but its not the worst bet
A 2% drop might tempt me into a sneaky day trade. What can I say? - I'm a gambler.
Wont be huge. Maybe a percent or two.
USA airline companies may have dropped by 3 or 4% in a couple of hours, but over the course of the day were only down by 1% or so, which is hardly a disaster.
London shares are ‘very very cheap’ says Rathbone UK Opportunities fund manager
“The UK has many game-changing, world-leading companies that are as good or better than their global peers,” Jackson says.
“And at the moment the UK is very, very cheap.”
The London stock market is in fact currently trading at around a 30-year low on the basis of its average price/earnings multiple versus the P/E of the rest of the world
https://www.proactiveinvestors.co.uk/companies/news/972260/london-shares-are-very-very-cheap-says-rathbone-uk-opportunities-fund-manager-972260.html
A share price is the discounted sum of the future cash flows and so these will fall if rates rise. Secondly, IAG has financing costs and the cost of capital increasing makes it more expensive (for instance their Bond yields they pay to bondholders etc). All else equal, rates and equities are negatively correlated. However, in general when rates rise that implies a healthy economy and so equities and rates will tend to move in the same direction. But the rate rises will be to counter inflation so its really not going to be positive for equities like IAG.
Secondly, its the psychological impact. The Fed is basically saying to stock holders "dont look at us for help, youre on your own" and so that implicit protection is now gone....
For me the Fed should raise interest rates however. As you say the cost of living is rising at an unacceptable level. Delaying things only makes the inevitable reaction more painful.
In general, I think IAG will rise to 200p even with higher interest rates. It's been at a very depressed level...
For me the key question are business travellers/long haul. People talk about holidaymakers within Europe but if that is your key metric then you should buy Easyjet. However, Easyjet is at c.50% of Pre-Covid and IAG is at 33% so this is priced in imo. You can see that 17% gap as a measure of the uncertainty around long haul...
Just thinking possible interest rates or oil price increase effects on IAG
Oil price inflation should slow down after an interest rate increase, if not airlines can adjust ticket prices accordingly consumers won’t even notice
Iag is one of the biggest player, will be more flexible over mid to smaller scaled players
Travel demand ready to explode ,consumers are eager to travel and increase won’t stop anyone since prices will be affordable anyway
Can give an extreme example from our shipment operations;
Before covid we ship 20ft container from China to UK for 1.200usd
Two days ago I have paid 11.000usd! for a 20ft container from China / Yantian port to Felixstowe
If someone told me container prices will be like this 20 months ago…
Iag is recovery stock not a start up or tech stock already sp is at the very bottom , interest rate increase also shouldn’t have any negative effect on conventional - recovery stocks
Imo neither oil price or interest rate increase shouldn’t have any negative effect on large scaled airlines
Guess we'll find out who was right/lucky tomorrow morning.
Lloyds, you want to see volatility? Check out THG, then come back to me! IAG looks positively asleep in comparison. But your are right, keep calm and hang on to the shares, if like me LTH, these will rise, never reach the £5.00 mark for at least a decade but £2-3 in the next 18months is reasonable.
I do mine with Lloyds (actually run by Halifax) which is £8 per trade, but I find it really easy to use, so stick with it.
As for the overly frequent trading, it's not so much the dealer fees, but the taxes that kill. Of course, until recently there was no tax on IAG purchases, which is why it was my main day-trade. Now there's that pesky 0.2% Spanish tax, which is better than 0.5%, but still mounts up.
IAG is about the most volatile stock in the FTSE so you have to have the stomach for swings +/- 7-10% in Covid times.
I made some dreadful decisions in Dec 19 when I held about £20k of IAG. It fell by about 10% and every country seemed to be queuing up to impose restrictions and I sold IAG the day before it rebounded.
It's easy to say but I do see IAG at 200+ by Easter so best just to keep that in mind. Buying and selling too often is really just a waste of transaction fees.
Who does everyone use btw? I use Barclays ISA and they charge £6 per transaction which seems decent to me
LA - I know, and did consider dumping at the close, but am just thinking (hoping) that that pattern must be broken at some point. Anyway too late now , so will be sleeping with (almost) everything crossed. As long as it doesn't retrace massively, I can cope with a small drop.
Yep - easy to forget that we were higher than this just 2 short months ago. That was, of course, pre Omicron, but given that that has ultimately proved to be a good thing (in terms of less severe illness), then despite the dent in Xmas revenues caused by it, we can hopefully soon return to that level, or maybe higher. Of course, if we had just paid better attention to the data coming out of S. Africa, and not reacted in such an hysterical manner, than a lot of anguish could have been avoided.
The trend in general following these large rises is a small retraction the following day
Agreed, however, we have basically stood still for over two months, similar sp on 17th Nov.
Still, a rise, however incremental is good by me, I would rather have a slow steady rise then jumps, that only invites shorters.
Well that was nice. Had hoped for a small rise today - 2 or 3 pence maybe - but certainly didn't anticipate 11 pence. Let's just hope we can hang on to it over the next couple of days, and that Mr Putin doesn't f**k it all up for us.