RE: Floor29 Apr 2023 16:36
I think it's natural to be drawn to shares which have fallen.
It's working out 'why' they have fallen that's the tough part.
The trap most fall into is thinking shares are 'cheap' because the price has fallen.
This is dangerous thinking, the market is constantly pricing but can stay irrational longer than we can stay solvent, or stay solvent longer than we can stay irrational, hah.
I think it's fairly priced right now, if there is a recession, it's overpriced.
Debt is being crucified in current market, never mind in 6-12 months.
INterest rates are still rising, which makes debt more expensive, which cuts into the bottom line massively.
I think Equality posted that TUIs interest on debt has risen from 70m per annum to 400 odd million.
That is a crystal clear example of how debt hurts.
AML is the same, another RI before long, TUI will need another if they can't grow profits, for example in a recession.