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Norwegian back on the horizon.
https://www.bloomberg.com/news/articles/2019-07-05/iag-reported-to-plan-new-norwegian-air-bid-within-two-weeks
At the height of the crisis including 9/11, for airlines, (2011, I was in then like today) the sp was down to about £1.30. So at its high 10 months ago you would have had near 6 fold return in 8 years. Now your looking at half that. Easyjet is following this near mirror like. All excluding dividends.
They are both dominant players and seem to come through the many variables that is thrown at them and you are in turn rewarded acccordingly. If cut throat pricing IS the main reason for the sp fall (of both and others) then, I know it goes against everyones thinking, the price of oil has to rise.
The position of strength for those airlines has been when the oil price has been long term averaging $100 dollar plus. Once the forward buying had ended at that price and cheaper oil became available, as it is now and at nearly half the price and being like that for the past three years, everyone came back to the party and it postponed many a death.
Happy to be shot down as I note that US airlines have been moving their seat prices higher lately boosting their share prices.
Agree that at 0% our market has suffered awfully during an 11 year worldwide bull market. Can't afford a recession now.
IAG will turn very quickly when sentiment improves particularly given its current yield and p/e. Assuming c.£4, after dividend, quickly becoming early £5's for a 25% gain when the right time arrives.
If the melaise continues then Norwegian breaks on to the IAG horizon again? Consolidation and taking capacity out of the market is sorely needed. Perversely so is a higher oil price not a softening one with the lower price only helping to keep the zombie airline heads just above water.
Walsh's outlook for 19 is the softest I've heard from him over the last 5 years. 'Flat' is the most negative comment he's used though. Not worried about MSCI. Your either in or out and its revenue and profits that drive the share price not sad indexes. Whatever you think.
Looming data breach fine? Stronger oil. Gov looking at its arrangements with other airlines. Currency movements. Terrorism. Many more but thats why they say airlines are not for widows or orphans.
Not sure about the rationale behind the special dividend. Never mentioned in any forward statements and nice as it is it unsettles me a little with its timing.
So, its the outlook for me and whether IAG has reached a plateau, for now.
Long time buyer. Yield and increasing dividend are very attractive but not at the expense of a softening share price.
This was what Peel Hunt thought of Plus500 on 1st February. Ignore all brokers and DYOR.
Plus500 got a boost on Friday as Peel Hunt upped its stance on the stock to 'add' from 'hold' and lifted the price target to 1,650p from 1,500p as it took a look at trading platforms.
Commenting on the company's brief pre-close update on 27 December, the brokerage noted that strong trading momentum continued into December, underpinned by significant market volatility during the fourth quarter.
They have rarely been beyond 7. Investors don't hate the stock. Results normally as guided. DYOR.
Hold but under regular review given current european aviation climate. International reach, cargo op's, ongoing investment in product and dwindlng european competition which, leading to subtle but higher forward seat pricing, lends current support.