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iag will close green, ezj too...watch the markets coming back...
Tui took a government bailout. They didn't raise cash for ongoing working capital it was to pay it back. If we're generating enough working capital to maintain our debt payments and future asset acquisitions announced today. We won't need a raise. With hedged fuel at 60% and demand allowing costs to be transferred to customers were unlikely to raise atm. We also have about 6-8billion in cash I believe.
It would make more sense to tap the markets now with American markets so volatile as well as inflationary pressures and cost of living crisis. Get money into the balance sheet before the slower winter season and share prices start retracing a lot further.
In the sector you normally find that when one raises extra finance it is followed by one or two others as they are all subject to the same pricing pressures. You only need to look at the current oil price to see there is turbulence ahead. If IAG do go down the same route as TUI then you would expect it about the £1 level.
If pent up demand falls so will oil prices. Oil can't stay at the level its at indefinitely, otherwise people just stop buying. For example I'm more inclined to take a train now since taxis put their price up 30-40%.
Oil is worth so much to producers they'll drive up supply while consumers are tailing off, and they'll follow the same cycle they did in 2014...hopefully.
I would agree with this and there is a palpable sense of denial at times on this board.
But we must separate the short term and indeed be "IAGLongterm" :)
All i can do now is wait it out like many on this forum ,it might take a year or more..... talking it up like some people do wont make the slightest difference...
Some idle observations : Estate agents: Rightmove and Foxtons tankety tanking, Housebuilders like Barratt well down. Oilies like TLW, HBR and ENQ lacklustre for some time. Yet the prices of their respective products are sky high.
Strange times. Are there hordes of pi's piling in whilst the ii 'bots relieve them of their cash ? Classical universe not working anymore .
LloydsActuary, i really hope so but dont think so anytime soon....I really do hope i am wrong but wish i cashed out earlier this year.....
Jtan, what added value does your post entail? I am a realist, I am invested in the long term based on no war, inflation, lower oil prices and no recession!
You had also mentioned in the past that you saw the SP tanking and now your invested at a low? Obviously knew what you were doing too!
IAG should be profitable going forward.
Agree?
Does anyone not understand that pent up demand WILL fade very quickly after the summer and all we will have left is stagflation, high oil prices a war and a recession?
Institutional investors are not going to come on board until there is a trend towards positive certainty...... doesn't take a rocket scientist to be fair. Only reason I invested was because i couldn't see these traits emerging when i did....
Well this is exactly correct. The Saudis balance the short term and medium term and do not desire a recession/depression.
Secondly, Fracking production will increase in the US at these prices but there is a lag.
So longer term, I am not as pessimistic as others on here. Yes US equities need to be corrected but IAG is not nornal as it hasnt recovered from Covid. This is a big deal and I do think that a profitable Q2 would see a significant increase in IAG's SP (even as FTSE goes the other way)
Inflation is driven by a lot of factors mate but not primarily asia. The global banks printed cash to a frightening level, inflated asset prices and destroyed supply chains. Into that they didn't invest in energy, oil and gas is driving everything higher then putin turns up. Asia will have an Impact but our problems are self inflicted. And now the central banks are increasing the cost of living to remove peoples ability to spend via rates...
They created this by hiding from the feckin flu and wouldn't listen, now we're being punished for spending following 2 years of draconian disastrous leadership.
Making people poorer is now the policy decision following paying people to do nothing. We need a leadership cull or we'll continue to fail.
Depends on 2 things 1) Asia getting over Covid as this is the driver of Inflation 2)resolution in Ukraine of that conflict helping Oil prices
There will be a recession but if central banks can not make that situation worse with interest rate rises will determine how bad this recession is.
Talk of 3 year recessions is ridiculous. That's not a recession but a depression.
"Still angers me people are unaware this is all deliberate, created by the govt and not putin though."
woody, that there!! 100% correct, the US government leads and the other sheep follow.
I certainly think we'll get a recession (we're in it) but it won't last too long imo. There's going to need to be a slow down in hiring which there's not, it's increasing, and the central banks will shift their policy again to ease the pressure, so I don't think it'll be a collapse as much as a global slow down.
Once we get fuel prices down and the consumer burns the cash theyve hoarded, things should calm a bit. Then with increased rates property will cool as will car sales, relaxing chip demand and so on.
Then we'll get back to normal supply and demand.
Still angers me people are unaware this is all deliberate, created by the govt and not putin though.
Institution investors drive share price, not use meager RI’s. Now which II’s would invest in airlines now with oil, inflation and war. Not to mention a recession coming that might lasts minimum 3 years! Peoples heads are stuck in the sand on this forum.
A strong Q2 result is essential if this is going to make waves soon
I think it will be strong
jtan if it gets to 800 ish im in lol cheers
IAGLongterm a good summer and more restrictions lifted no reason why it wont go back up as nothing pulling it downaprt from financial news bud , lets fly i say
bobbins, sorry mate. I would do the same but we have electric, so it would only get really hot. Good news though, I fixed the leak in the koi pond.
It's hot here, nearly 30°C so I think a nice bowl of sorbet is in order.
What?
Nowhere near 3 years
fordm - thanks, that really helped a lot!
patience is required..In the meantime top up if i can, also just got some cheapo CCL.under 10 quid...put away for a year or two..this is a great opportunity, not to be missed. Enjoy. DYOR.