Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
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12 BLM debt up 25% and rising
British Airways is going to be leaner and more efficient than ever.
Legacy staff wages mostly gone.
https://www.bbc.co.uk/news/business-53687338
Yes Wobbles, and a lot of people believe Tesla went properly bankrupt but because of the reach of the climate change hysteria it was covered up. To have one of the Cinderellas of the movement go under would have been a huge blow to the cult. Instead we have the forced sale of ev cars to people who can't afford them and would never be able to afford battery replacement. Many serious people still think Tesla is actually insolvent now and there are worries about the car companies that are solely switching to ev production. The take up is very poor, there is a very significant infrastructure problem such that even if everybody switched tomorrow with a free car most people do not have a dedicated parking place to charge a vehicle. And then there is another critical problem to do with the wind not blowing and where is all this power to come from to charge all these cars everyday. Governments are having to guarantee forced purchases by banning fossil fuel cars in just a few years - a hang over policy form when we were in the EU. A lot of car manufacturers are going to go under in a few years time if this forced policy against market forces stays. One election away from a collapse of society unable to move around freely.
If you think 12bn debt fine, good luck.
As for comparing with tesla, loooooooool's.
Gunning is jumping ship, he knows what coming.
Yup, a heavily dilutive refinancing package.
It will wipe out many shareholders, Thats a worry, isn't it?
Companies operate with debt. Its whether the debt can be serviced and where the company is heading.....
Tesla is 12b in debt
Glennhoss
Posts: 583
Price: 182.92
No Opinion
RE: Reality checkToday 14:48
BB and fugazi... with all the rubbish you 2 actually spout.. the issue is lots of investors have made serious money on iag going up 25%.... sitting and watching has cost you both good profit.. although I think fugazi is a dreamer wannabe... got no shares anyway
....................
You sound rattled, rightly so. Debt outweighs cash in bank.
Sry forgot ... YO
BB and fugazi... with all the rubbish you 2 actually spout.. the issue is lots of investors have made serious money on iag going up 25%.... sitting and watching has cost you both good profit.. although I think fugazi is a dreamer wannabe... got no shares anyway
€12b debt, that we know of vs €10.2b in the bank during the summer.
Minus the £150m weekly cash burn over last 3 + months.
It would appear iag is technically insolvent and requires a heavily dilutive rights issue.
Can it be refinanced another way, yup, but then shareholders will not be involved, unlike an RI.
Its a cometh. Imo. Gunning knows.
Trouble ahead.
Gunning was also known to be strongly supportive of the need for IAG to replace its ageing fleet of aircraft and replace them with new more fuel-efficient models, an issue that is also unresolved.
Before Walsh left IAG, it was an open secret that his preferred successor was Gunning, who joined in 2010 and who Walsh appointed finance director in 2019. Like his former boss, Gunning was regarded as being combative. The top job went instead to Luis Gallego, 52, a Spaniard, from Iberia.
Gunning is to see out his contract up to the publication of the group’s lossmaking results early next year.
You really do have no idea what you’re talking about. I sold out of IAG at the end of September after a 2 week position up a little over 25%. It’s not that I feel this stock is overvalued I just feel that it is reasonably valued and therefore there’s currently better short term growth options out there (a word of advice easyJet isn’t one of them).
I will probably buy back in here depending on how the booking numbers look for NA as that in itself will give a strong indication as to the likelihood of a rights issue. You may find out a few months afterwards from a broker update if you’re lucky….lol
Let's be clear about this because some of you think that because I can see the red flag I assume it is a definite thing.
I will be delighted for the next statement, RNS or otherwise, to state that due to the timing of the opening of the US IAG has sufficient credit to draw down until xyz next year and therefore no further money needs to be raised from the city or asset sold. It will be great, fantastic, brilliant, amazing and worth a very quick buy as the city will also get the message. To date, there isn't a sniff of such a message.
On that basis, the only firm information to go on is what is known in the real world. Brokers suggesting RI is required, IAG saying no emergency issue required (indicates still credit to draw on for an unknown length of time) but they are exploring options to avoid a future RI (looking forward to Feb results perhaps??).
But to deny what is known now and pretend it has vanished into thin air could be a significant error. If you are invested but new to the game, go and read up about stops and orders and how to place them to fire automatically with your retail account. That would be sensible. I personally don't use them from experience and I have live prices and alerts through investing.com app and can trade anywhere as long as I have a minimum of a 2G phone signal.
I do hope further dilution is avoided. But I can not ignore 3, three, brokers making the same extraordinary call. To go public with such a suggestions is a very big deal, that sort of thing is not said lightly because it can trash a stock in minutes. It is a red flag for me until I hear clarification. At that point I will decide whether to buy in on the dilution or estimate a potential high side with the red flag removed and grab a margin.
Denying the red flag exists is really rather a dumb thing to do.
Bull, do you have the retraction or update form the brokers removing a reference for the need for an RI?
No you don't.
Do you have the details of the financial review?
No you don't.
Those issues are as live today as when they were first announced. No wonder so many people get completely caught out with announcements. If it ain't in the papers then you assume it's gone away. Short Sighted or what? As with the travel date for the US, it is all speculation right up to the point that the detail is known from the source it is supposed to come from. There is unlikely to be any RI for retail investors. And that points to why some many of you keep that focus. That way attention from possible dilution from other fund raising methods can be deflected. Keep people focused on the rainbow and ignore the storm cloud!
There's trouble ahead.
Gunning knows.
Look at the debt, that renders iag insolvent.
Gunning’s departure comes after tensions at IAG, which is €12 billion in debt because of the Covid-induced aviation travel crisis. The group recently botched the announcement of its unresolved plans for Gatwick airport.
One thing to bear in mind:
"Transatlantic travel between London and New York is a key route for the airline industry and the biggest aviation market by capacity.
IAG’s fortunes are tied to the lucrative UK-US travel corridor and especially the London-New York route which generated over a billion dollars of annual revenues before the pandemic".
Now that we can fly these routes again with FULL planes (very soon), i suspect the share price will gain traction.
DYOR.
IAG do need to start charging more for their flights though. The silly low amounts charged on some flights, my son got one from Venice to Athens for I think €15, they could at least double those and still get the business, after all fuel is rocketing in price. How much fuel price hedging has IAG got, anyone know please ?
BB, the share price was down at 135p, it is now at over 180p. The specific date will have only moved it by a few % because it is just confirming what people already knew. Everyone already knew that the US was opening in November, that’s why the share is up around 30% in the last month (also why it has significantly outperformed EZJ).
The fact you almost seem to be praying for a RI to happen to save face comes across a bit narcissistic, say well done to the people that got it right and accept that you didn’t on this occasion (which is fine because no one gets it right all the time).
Have a good day.
Morning all,
Another green line this morning, can only be 2 individuals..i presume they are saying we are good to take off, no rights issue and that because of FOMO they bought in!!! Expect another increase in the share price next week on the back of re- opening of uk- us travel. We should get news on bookings soaring at the week end. Good weekend to all...well, almost all!!!Dyor.
Delusion, delusion, delusion. Some people refuse point blank to acknowledge plain basic unequivocal hard truths. At this moment in time there is no update on the alternatives being considered to avoid a RI. There is no change, retracting, clarification or update from the broker notes. That is the actual reality of the real world. If that changes and the brokers say the RI requirement has now gone and the financial arrangements have no impact on shares issued, then fine and great. But trying to wish it or pretend group think will bring that about or burying a warning voice is going to change the real world is absolutely delusional. I have to say I haven't seen this level of mourning over a sp before. And there is clearly a significant embarrassment and loss of face on those ramped this to hell and back on the back of an opening date for the US only to get about a percent on two on the daily movement. Some of you need to ask yourselves what have you become to be making such nasty vile comments at a stranger just because that stranger points out truths you do not want to hear.
Until there are updates from the sources themselves, these facts in the real world are not changed.
"""We have revolving credit facilities, we are analysing other ways of financing the group so we have alternatives before we [consider] another rights issue,""
Credit Suisse
https://www.proactiveinvestors.co.uk/companies/news/960029/british-airways-owner-iag-target-price-cut-to-reflect-increasing-rights-issue-risk-says-credit-suisse-960029.html
HSBC
"Lobbenberg [head of European transport equity research at HSBC] added that the timing of any potential capital raise by IAG could be linked to an announcement on reopening the US border, which is now expected in December"
https://www.thisismoney.co.uk/money/markets/article-9980907/BA-owner-soon-raise-cash-shareholders.html
Goodbody
"Earlier this month, easyJet tapped investors for GBP1.2 billion in a fully underwritten rights issue ... Analysts at Goodbody and HSBC said they believed the British Airways parent would follow."
https://www.morningstar.co.uk/uk/news/AN_1632125541714351000/press-iag-will-not-tap-investors-for-recovery-funds---sunday-times.aspx
benji, agreed. good position indeed. it'll get there but just a little bit slower than most thought. Good to go slow sometimes but I think it'll be steady.
The Group is well positioned to take advantage of the recovery in air travel and to emerge a strategic winner in the industry
Steve Gunning said: "It has been a wonderful experience to be involved in the creation and success of IAG. I have also had the privilege of working with so many dedicated and talented people during my twenty plus years with British Airways and IAG. Having helped guide the Group successfully through the challenges of the last two years, it is now the right time for me to seek a new challenge. The Group is well positioned to take advantage of the recovery in air travel and to emerge a strategic winner in the industry."
15 October 2021
Every Airline went up and down in block today, Simples!!!! we are only just 1 day after the whole market was recovering from inflation worries!! It'll show small increases next week until the inflation dust settles regardless of the good news today.
BB- there have been too many significant events for me to bother posting them here. You know what they are. To require someone to list them for you is disingenuous of you. Like I’ve said - unethical of you. Try going to the pub and enjoying a few beers. Get a life. You won’t be able to keep back the tide. You’re just being an a””e.