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Tweedledee was making a point Moonman, no sign of you or DC yesterday when the SP was +12%?
DC; your correct Covid will affect earnings for some time to come but SGC are masters at reducing costs and that is exactly what will happen when the funding is removed
The subsidy is in place due to the Govts demand for a full public transport service while implementing THEIR social distancing measures and messaging which is harmful to the sector. How can a business be Strong right now with these constraints in place? Operators are doing their bit by assisting with the messaging, operating full services and reducing capacities, why should they not be compensated for doing that, it does not make them weak businesses?!
SGC is not in a precarious position, public transport will always be at the heart of a good economy and the answer to congestion and pollution, SGC know that Governments know that and so do most folk.
Going Bust a possibility, your having a laugh, Currently NOT operating at a loss with 800m cash in hand?!
How predictable. The SP is down today so the de-rampers are back. Lol
No, I'm not moon man to whoever insinuated that. I researched SGC in some depth before corona and then during corona. CV19 is going to crimp their earnings for years. With their debt and weak balance sheet, they really don't have much slack to absorb this.
Some see solace in the goverment subsidy but I do not. A strong business would not need a subsidy; it would not be dependent on it to remain viable. What if the government tighten the terms? Or if they have to reduce the funding?
SGC is in a precarious position and admin/bust is a peripheral possibility. The market they operate in has went from stable and predictable to being an unknown: much like the way online rapidly supplanted physical retail, CV19 has catalyzed a shift to remote working that is here to stay.
Good performance today. Didn’t really get why it slipped in the way it has done over the last fortnight. Still a fair bit of catching up needed for me to break even again though....and that wasn’t the objective of investing in the first place.
Don't jynx it! It fell 20% in a single day last week didn't it? Don't want that happening again! Some more 10% blue days would be nice!
All the bus Co's are up today. The ones with no trains more so. Could it be that the loss of our rail franchises is a bonus ? I think so as trains have been affected more by loss of passengers. Will HS2 even complete now ?
De-rampers are very quiet today ??
Very nice graph shape. one of my favorites.
Interesting you should say that. I was just talking to a friend yesterday who works in a casino and he's happy because he finishes at 10pm. Now he can get the bus home instead of spending £50/week on uber. I'm not sure if it will make a huge difference but many people who work in leisure are young and can't afford to run a car. I know we have a few bus drivers on this forum so maybe they will start to notice new regulars on their route at this time.
Will make public transport busier, offsetting the few office workers now told to work from home again. Why catch a taxi and pay more if there's a bus you can catch ?
Moonman I think your smart enough to know the answer to your question is yes,
What I really struggle with is why people spend time looking at stocks and joining on BBs when they are clearly very negative about them. Ok you say you have a soft soft spot so just buy a little here and then go invest more time and money in a stock that you see has real potential and promote it.
I gave my positive thoughts on the potential here, do you agree or disagree?
I’m not bothered where this share price goes in the short term.... by short term I mean anything up to 18 months...... I’m buying and continue to buy once or twice a week... and will continue to do so... as an employee of the company there is no negative feedback coming from senior management via their blink social media website.... just keeping their employees aware of the current day to day situation... however only time will tell..
Ok Timmy so you have looked at SGC from every angle, decided it will barely survive yet here you are today having another look(bargain hunting I assume)?! Doesn't really make sense?
Moonman/ DC same?
Current SP is a @ 1/4 of Pre Covid price, same as other major public transport players and SGC have historically paid excellent dividends yet you see no plausible upside, come on! passenger levels have gone from 10% at lockdown to almost 60%, not to shabby as we are still very much in this pandemic so to suggest SGC will not survive is ludicrous, public transport is a necessity for the masses not a luxury. Yes there will not be a return to pre Covid passenger levels but just as before the virus non profitable routes will go or be subsidised even further, Margins will be maintained.
Dc2007 I have to agree, I’ve looked at this from every angle ( bargin hunting ) and this company will barely survive covid ,let alone yield a profit.
The balance sheet is very precarious, covid is going to sink their earnings, and part of their income is subsidised. Capital restructuring probably needed to stay afloat. This is a poor investment: high risk to principal with no plausible upside.
We were starting to recover before the new measures announced. SP is chomping at the bit now to rise from here I honestly thought we had bottomed out at 39p anyway ALL the bad news must be out now ?
yep the ERMA is for train operators but the separate funding for bus has been agreed for as long as needed?
and probably should have added SGC have no overseas risk exposure ATM.
at least were out the red and heading for a blue day now!
https://www.lse.co.uk/rns/GOG/go-ahead-full-year-results-2020-xpml7lb33v8l0ix.html Their regional operations were badly affected by the lockdown however. As we are now out of National Lockdown with little chance of a return to that Covid defence, by the time we see our interims I would expect to see a huge uptick especially as winter approaches. Riding bike and walking no fun in the wind rain and snow. Very few deaths now due to Covid. More form ordinary flu !!!
The new Emergency Recovery Measures Agreements introduced by the chancellor apply only to bus operators that also have trains. Their share prices seem to have bounced a little after this further funding was secured. Trains have been hit harder than buses though. https://www.sharesmagazine.co.uk/news/shares/why-go-ahead-firstgroup-and-stagecoach-shares-have-plunged-today
No Sense or reasoning to this downward trend, SGC are the least exposed of the big 4 with no rail involvement. Bus patronage is well ahead of train ATM so don't understand.
GOG and NEX statements much better than anyone expected so WTH is going on here?
Will just have to keep adding more at this ridiculous low price!
Is SGC getting hit so hard? 10% down at open and the worst transport performer despite positive GOG and NEX news about the sector.
i agree 100%
shares down = opportunity
simple .......................................lockdown = shares down ......