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Good news.
Nice. Hopefully the CEO buying more! But either way, the momentum seems to have run out on the downside. And as you say, earnings should be ok, the company already having guided. I also own National Express which seems good risk reward here (might be shakey over earnings but could double over the next year or 2). Lots of staffing issues, but so did the airlines and that has proven to be a massive buying opportunity over the summer... Do you have any other stock recommendations ShearClass please?
Its the wage inflation and strikes in the UK and staff shortages in the US. But all of these things should be temporary. Airlines went through a similar thing last year and now these stocks have flown (no pun intended). Management need to do a better job of selling the company. Long term, so many structrual tail wids. And recession proof. I just hope a) earnings are good and b) they reinstate the dividend like they said they would.
He bought £25k the end of last week. Not sure why he bought so small (for him). He now owns about 9.5% of company
Incredibly helpful and I hope you are right. Thanks so much ShearClass
I own this stock and I'm well off side... does anyone have any view or insight here please?
I'm offside on this. But the quality of the business looks very good. Growth area, and recession proof and very high quality earnings.
Does anyone have any insight or view please?
We've known about the strikes in the UK for a while. Is there any newsflow/reason why the stock is so weak (on decent volume) today?
I think the net debt is closer to £1bln. Shouldnt be a problem for a company with £3bln of revenues and a 7% margin. And (barring a pandemic) these are revenues which should be very stable and grow over time: recession proof
Easyjet traded at the lows over the end of the summer following strikes and staffing problems and now it has gone up 80% from there. Hopefully National Express will sort out their staffing issues soon and stock will also re-rate....
Thank you so much... maybe buy more if stock opens up less than 10%? Do you know what break up value of company is?
Good morning. Does anyone have a view on where to sell this stock after the news today? Many thanks
Does anyone know when National Express release their next trading update? I know full your reasults are scheduled to be on March 2nd. But will there be a quarterly update soon?
Stock is not liquid. And it trades at a valuation premium because of the high quality high margin repeat revenues... Very attractive target for PE and also corporates... but half year earnings were disappointing today. Good buying opportunity a these lower levels!
I think these stories about strikes are very much in the price. Central bankers in the US and the UK and the EU are fighting to reverse the momentum of wage inflation and eventually their actions of raising rates and quantative tightening will have impact. When this happens there will be recession. And National Express should be recession proof.
So many positives: 1) Fuel costs have been coming down 2) Credit has calmed down 3) US wage inflation momentum has turned negative (biggest business is US school buses) 3) Company has said it will reinstitute dividend for 2022 earnings 4) Stock technically got oversold at end of last year as people cut losing positions 5) Attractive to private equity for breakup 6) Recession proof.
Has anyone seen a story?
I'm long this stock and I like it a lot because I think it has a lot of tailwinds and the valuation is depressed. Fuel costs have come down. Wage inflation should ease. They are still recovering from Covid. The debt should go down. A dividend reinstated. In the UK they should be benefiting from the rail strike... In the big picture they should be recession proof and environmentally friendly.... But I'd love to know more about their US business (which is their biggest) if anyone has any insight please?
Thank you. Do they get that number by looking at the options market? I'd be surprised if it were that low... it would imply (I think) an £18mln payout, and at these very depressed levels a 2.255 yield... I'd love to know what experienced equity analysts are saying...? You would have thought at these levels that that be looking to give you closer to 5%? Only a £40mln payout which shouldn't be challenging when you consider that EBITDA last year was £300mln and its going to be much higher this year (30%+?)... even on the interest payments on their debt (less than £50mln??) shouldn't they easily be able to pay 7p here??
National Express have said that they intend to reintroduce a dividend this year. Does anyone have an idea of how much this dividend might be?