RE: Doom21 Dec 2020 22:29
I think there is good reasons to be optimistic about the vaccine efficacy on this new strain and that it is not particularly more virulent, for some of the reasons I have already stated. I think I could add a couple more reasons.
If there was a high probability of vaccine failure to this the stock market would have torn this share to ribbons today, along with half the FTSE and all the major indices. It would render so many businesses unviable including this. As it happens Tui fell 0.98%. People far smarter than me, it would appear, share my view.
The restrictions are imposed by politicians. As this year has shown us, politicians are not particularly bothered by science and history. To be fair, id have done the same as the 40 odd countries today. Block travel to the UK for a few weeks, shows my electorate I’m cautious and protective.
Whilst a detailed timetable is not available, there is actually a vaccine rollout plan. The Health service journal proposes everyone who would like a vaccine, should have been able to have one by April. I do not know if they will meet this but it seems feasible. Even if they don’t hit this, the vulnerable population will have been vaccinated, the diseases has limited effects on young fit adults. You are right to doubt me, but perhaps its worth listening to Professor Sir John Bell who said life should be close to normal by Spring.
You’ll have to forgive me if I’m wrong on this point. But I thought the mcap was based on the number of shares. So, whilst the number of shares may roughly double, if the price of the shares roughly half then the mcap is unaffected and a fair reflection of the company’s value. So long as holders take up their entitlements to avoid dilution, then a doubling of mcap in a couple years, which I think is a possible scenario, holders will still do very well.