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It's been a continuous drop since last week!!! looks like it's going back into the 50s
Can't argue with that
I thought i'd done ok at 92p (from the 115p top). Then got some more at 82p!
This is now a very bad investment. But long term we know buses are a driver of the economy and the Gov supports
Just be a longer hold than I thought back to £1
The biggest risk to Stagecoach and the reason it fell so dramatically last year at the start of the pandemic from ~145p to a low of~ 35p was the debt - and yet in the last twelve months they've actually been able to make a profit and reduce net debt.
That surely bodes well for a recovery to 100p once the broader markets look stronger again?
That is not the point I was making - most shares fell as the world entered the pandemic but some far more than others. In general companies with a high debt to equity ratio saw the steepest declines as they were at a little more risk of collapsing (see the likes of cineworld for example).
Seeing as even last year the company was able to reduce its net debt I'm very very optimistic here...
HarChris. The reason this share dropped so dramatic at the beginning of the pandemic had nothing to do with debt as most companies have debt but the fact that 1 we was in lockdown and 2 the maximum passengers allowed on a double deck Bus was 30 and I think 16 on a single deck I don't drive those so not so sure. So if the revenue is cut the profits and share price will drop. Cineworld was closed most of the year so profits drop along with the SP. Nearly all share prices have gone down over the past week or two i am not sure why but i do think public transport will grow more in the future as people are encouraged to ditch their cars.
@tweed - the bit you're missing is that debt drives your risk beta
A stock with higher debt reacts with more volatility than a business with lower gearing. It's too simple to say the share price fall was just revenue related. How much it falls considers the risk beta
Yeah exactly Dan. It's why during financial crises defensive stocks with continual demand and lower gearing hold up relatively well. Debt + inability to operate (like last year) is a recipe for disaster - fortunately the transport system is seen as a necessity and the government have stepped in to keep things afloat.
I consider this somewhat a defensive stock in regards to the need to use the bus network whatever the economic backdrop, nobody is priced out. Add to that the green transition going on and the green credentials of stagecoach and we should be on to a winner here.
@harchris you can prove the point. Pick two stocks in the same sector. The one with more debt bounces about more. That’s the way it works
Just walked through Manchester and buses are rammed
Will get out early tomorrow and see what the morning rush looks like (always get the steps in and a coffee)
I think it's more than passenger numbers and Company debt now, most of the market has been declining over the last couple of weeks something bigger going on I believe the market is predicting something happening soon and pricing it in already.
This market makes little sense at times
Back in April last year, when no-one knew if a vaccine would ever come along, let alone how long it would take, the sp got to 87p. It then dropped again before hitting 77p in June.
Now, with the astoundingly fast progress that has been made, and 2/3 of all UK adults fully vaccinated, the sp has slid to 72p, lower than it was at the height of the pandemic uncertainty last year. Madness.
@Chris: It does make sense, you must consider that the maximum amount of shares traded today represents less than 0.2% of issued share capital, even less as the same shares are often rinsed through, MM’s can sell off book and manipulate the SP and the Algo’s are driving the price down on a very small amount of traded shares. It is a classic case of shaking out the bed wetters for the II’s to mop up. It doesn’t take a lot to spook PI’s who believe the market is about to implode. The shares are being walked down but I believe we have hit the bottom. I bought these, GOG and BP on leverage today as we are coming out of this mess and the markets know it.