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Antropica, dividends are unlikely to be back for at least a year or 2.
IAG's debt amount meant that interest payments were were over £718m last year. Debt is reducing which is great, but the IAG chairman said that shareholder rewards such as dividends will take a backseat to debt management for much longer yet.
Have just seen this announcement today from Tui - maybe that was the reason for the 4% drop in share price today? Although as this was part of existing orders you'd have thought it would have been priced in?
Completion of Aircraft sale and leaseback transactions
Hanover, 25 October 2023. TUI Group confirms the signing of a sale and leaseback (“SLB”) agreement with SMBC Aviation Capital Limited for three new Boeing 737 MAX-8 aircraft for the aggregate sum of $147m (~€139m).
Completion of Aircraft sale and leaseback transactions
Hanover, 25 October 2023. TUI Group confirms the signing of a sale and leaseback (“SLB”) agreement with SMBC Aviation Capital Limited for three new Boeing 737 MAX-8 aircraft for the aggregate sum of $147m (~€139m).
The SLB agreement with SMBC will finance three new Boeing 737 MAX-8 aircraft from TUI’s existing orderbook which are expected to be delivered during the course of FY 2024.
Additionally, TUI Group confirms the signing of a sale and leaseback (“SLB”) agreement with IC Airlease One Limited for three new Boeing 737 MAX-8 aircraft for the aggregate sum of $147m (~€139m).
Hi SK,
I'm not sure how this will play out to be honest, although for some reason all airline stocks seemed to start recovering around 2.30pm today? Any ideas on what happened as I cant find any specific news regarding this?
Tui in particular has gone up from £3.81 to £3.99 in the space of an hour !
Hi, I just wanted to offer an apology to SK.
I reacted to a comment he made when i was worrying about Tui's debt last month and i filtered him out.
Since then i have read through some of his previous posts and have found that he is a sound contributor to these threads
So apologies SK for any offence caused.
Agreed.
I wish I'd sold now at £1.50 when I was considering it.
Unfortunately the move above £1.60 kept me in, and then the loss declaration nose dived the stock .
Part of the living and learning curve i suppose......
Dont know what happened to the web link there - here is what they say:
JP Morgan set a target price of 540 GBX for the company, which when compared to the easyJet plc share price of 358 GBX at opening today (20/10/2023) indicates a potential upside of 50.8%. Trading has ranged between 308 (52 week low) and 583 (52 week high) with an average of 3,871,868 shares exchanging hands daily. The market capitalisation at the time of writing is £2,735,476,582.
this forecast by jp morgan gives me a little more hope for the future :)
https://www.***************************/easyjet-plc-50.8-potential-upside-indicated-by-jp-morgan/4121130341
I too personally wish i'd never invested in airline stocks.. They are way too affected by external matters such as strikes, delays, bad weather, droughts, wars, sentiment etc etc etc
Unfortunately for me i'm invested in 3 airline stocks, of which IAG is down for me but my best performer (the other two are scarily down in share price now and will need miracles to ever break even)
A financial analyst gave ger reasons for the sharp decline here:
Russ Mould, investment director at broker AJ Bell, said that the problems at Tui run even deeper, pointing to the three rights issues the firm has conducted in the past three years – of £475m and £955m in 2021 and a further £1.6bn in 2023
The share count has shot up from 100m to over 500m as a result,' said Mould.
'Dilution is the enemy of the investor and the increased share count could be causing some indigestion.'
Mould also pointed out that expected profits of around £870m this year – following losses in each of the past three – cover the forecast debt interest bill of £390m by just over two times.
'Two times is seen as the minimum needed to provide a suitable buffer for a cyclical business like travel, should anything unexpected go wrong,' said Mould.
'Although 2022 and particularly 2023 have seen a lot of revenge travel, markets are worrying about the creeping impact upon consumer confidence and spending plans in 2024.
'Germany is again being dubbed the 'sick man of Europe' – and that's a big market for Tui.'
Its good that LSE shows us recent trades for free (with a 15 minute delay) but I was wondering please if any of you guys use level 2 and could tell us if there are any very large limit orders waiting in the wings to buy/sell at a certain price?
I'm an investor not a day trader by the way so am not after any free trading pointers lol
With shares currently trading at £4.56 I am fast approaching a 50% loss on my Tui investment, meaning I'll need a 100% reversal to break even :(
For me the biggest issue with Tui now is their net debt. It was great to see in the latest results that net debt improved from €3.31bn to €2.17bn. However when you measure that against a market cap of €2.71bn there is still a massive amount of debt to clear going forwards....
I was wondering please how you guys feel about the net debt situation and if it has had any effect on your TUI investment decisions?
Unfortunately @boyasaka I don't think you have any chance of Tui ever reaching £11 again. In fact being realistic I don't expect it to reach my average price of £9 again either.
I remember on the day before the rights issue of the Restaurant Group nearly 5 years ago their share price was £2.52 .
Today, nearly 5 years later its just 44p.
Admittedly they are in a different marketplace to Tui but all the talk at the time was of big future profits after they would use the rights issue money to buy Wagamama . Unfortunately those profits never came to an extent to push the share back up.
I know this is a negative example of the effects of a rights issue, but I think we both need to be more realistic about future Tui share prices with so many extra shares now in circulation compared to pre the RI
What frustrates me is the performance of Tui shares in comparison to other airlines recently.
Tui is down 27% this past month, whereas Easy Jet is down 6.3%, Wizz air 7.2% and IAG by 5.8%
When contributors to this thread rightly talk about market sentiment having a big effect on share prices, poor Tui does seem to be singled out much more than the others by sellers.
Thi may have something to do with Tui's 3% fall this morning
BERLIN, Aug 25 (Reuters) - The German economy stagnated in the second quarter compared to the previous three months, following a winter recession, data from the statistics office showed on Friday.
The figure of zero growth for the three months to July was in line with a first estimate published in late July. Year on year, adjusted GDP contracted by 0.2% in the second quarter.
Quarter on quarter, economic activity had fallen by 0.4% in the fourth quarter of 2022 and by 0.1% in the first quarter of 2023. Two consecutive quarters of contraction commonly define a recession.