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Hi, Cane,
I've got £4.5k invested here, which is at an average of 66p.
I like my quarterly dividend as much as the next person but I imagine most peeps invested here are down on their overall investment.
I agree, the almost 10% dividend softens the blow, and I receive around £70 per quarter for my stake (which isn't eye watering) but if the SP drops, then that makes any dividend benefit vastly minimal.
I'm really not sure what's going on with REITS but the company appears massively undervalued, unless their is something worryingly afoot.
Anyway - I still have faith, and will keep adding at these current lows.
All the best.
GRQ.
https://beststocks.com/analysts-have-given-international-consolidated-air/
I'm an old timer on LSE but I once remember a chap called Oil.
He always offered balanced reviews of IAG.
I sure do miss that little scamp.
Well, I certainly can't grumble.
After topping up when the Sp went to unfairly valued lows, I'm almost at break even again.
There seems to be a lot of external factors depressing the Sp, but as long as we have continued results showing financial strength the SP will naturally correct.
I'm not naive in thinking it will only take 1 more quarterly result like the last to rocket us upward, but another robust set of financials will underpin the Sp.
On a side note; I feel my Sp prediction was too conservative, can I change it?
I'd like to go with £1.47.
ATB.
GRQ.
Thank you, TC.
That's a good read.
And, roll on tomorrow. It's UKW pay day!
GRQ.
DB,
Stick me down for £1.36.
It we get a similar pre RNS update from IAG about the next quarterly results being lucrative, then I'd say £1.50.
Oil,
My goodness, I apologise if any words that I said appeared to come across as ridicule.
As I have said; I bought at a higher price than you, but the only difference between you and I is, I'm not complaining of my bad timings.
ATB.
Oil,
"It’s obvious!"
I am sorry you bought at completely the wrong time, but judging by the charts the Ukraine conflict had come about.
That time was tentative at best but you still bought. It's a bitter pill but I hope you'll be fine.
However; it was very foolhardy for you to notice a share that you know has declined since 2018 and even after the affects of lockdown, you thought this share (the travel industry) would recover as quick as you may be hoped.
Oh well. It's hard and you've learned a valuable lesson, but there are many wise scamps who bought at sub £1 and are now sitting pretty.
Timing is everything. You timed it poorly.
What I will say is; what has changed since your timing? (Excusing external climatic influences).
I think you'll find your approach to this business model has barely changed.
No matter what. I imagine engaging with your good self with only cause an endless amount of rumination and tail chasing with us both going in circles.
ATB.
GRQ
Apologies, Oil,
I didn't copy the whole of your message into my response;
"I bought at 180 and have no money left to average down.
As for this being a long term investment, I know that"
So, forgive me, you bought into IAG after years of decline but you still knew it was a long term investment?
I'd be curious to know what your rationale was on why you believed IAG would grow beyond your £1.80 buy in price?
ATB.
Apologies, Oil,
I didn't copy the whole of your message into my response;
"I bought at 180 and have no money left to average down.
As for this being a long term investment, I know that"
So, forgive me, you bought into IAG after years of decline but you still knew it was a long term investment?
I'd be curious to know what your rationale was on why you believed IAG would grow beyond your £1.80 buy in price?
ATB.
Oilz
"But IAG has been sinking now since 2018"
Then it begs the question why you bought in at the time that you did, as you would have bought a couple of years after its decline.
We are all accountable for our choices (and investing mistakes).
ATB.
Sundance (cool name by the way - obvs the Sundance kid)
Travel stocks will have a fight back, but this is an industry treading a fine line.
We need consistent quarterly updates with consecutive financials showing how we are growing.
I only invested here as I thought IAG would outlast the competition. They will stand the test of time and continue on, and their last update suggested that.
I imagine you will comfortably reach your average target. I obviously can't base that on anything but our profit earnings is low, when compared to our revenue is balanced incorrectly, so if we keep it up, a correction will occur.
It's easy for me to say; but at your average SP I think you'll be fine.
Good luck pal.
Oil,
I'm more exposed here than what my life lessons taught me not to do, and I made a mistake buying too many but I did so to average down as I first bought in at £2.
Due to my attempts to average down, I'm almost at break even. That said; I feel your pain if you're sitting at a higher average and that is something I nor anyone can change - not that you asked that of anyone.
Many investors get caught out and buy when climatic changes are about to occur and then the share price plunges, but that doesn't mean from our current levels that people like me aren't happy with being at break even or in profit.
I've got quite a few grand tied up in here, and I'm a dogs whisker away from break even again.
Assuming we keep receiving healthy quarterly updates regards our finances, I know I'll make money from this point in onward.
So for me, I can't complain too much. If anyone was buying into the travel sector when travel industry was slowly opening back up (such as you and I did) we really can't complain too much with it's recovery.
It's been the hardest affected and the slowest to try and recover. Surely most folk knew it's a long term investment.
GRQ.
Lloyds,
That was wonderfully put.
The secret is to not be swayed by any reports bias, but to be able to extract the underling info they may hold.
There is truth in every trash. Even the Daily Mail...
Ha ha. Fair enough, Jtan!
I know they've been very harsh toward IAG, but it is nice to see that one sided harshness swing in a different direction?
Love them or loathe them, even they can see the possible growth benefit of IAG.
Have a pleasant Sunday all.
The Motley Fool still isn't going to buy any IAG shares but his tune is massively changing towards the company outlook;
"The International Consolidated Airlines (LSE: IAG) share price is flying right now.
The FTSE 100 stock remains around a fifth cheaper than it was a year ago. But it’s jumped 33% since the release of third-quarter financials in mid-October."
"The British Airways owner hasn’t paid a dividend since the Covid-19 crisis exploded. But City analysts are expecting it to grow shareholder payouts rapidly over the next couple of years.
Is now the time for me to buy IAG shares to boost my passive income?
Robust dividend forecasts
First off, it’s important to note that dividend yields are pretty small right now. For 2022 and 2023, these sit at just 0.1% and 0.7%.
Still, the rate at which dividends are expected to grow has really caught my eye. As a long-term income investor I’m tantalised by the prospect of strong dividend growth lasting beyond next year.
IAG is expected to get the ball rolling again with a payout of 23 euro cents per share in 2022. The dividend is then expected to balloon to 1.16 cents in 2023.
It seems there’s a great chance of the business hitting these expected dividends, too. They are covered 13.6 times over by predicted earnings this year and 18.3 times for 2023.
Bouncing back
Such predictions of breakneck dividend growth reflect City forecasts of explosive earnings growth over the next two years. Current consensus suggests IAG’s bottom line will jump 276% between 2022 and 2023"
"Third-quarter financials last month showed how strongly the firm is rebounding from the Covid-19 peak period. Revenues rose to €7.3bn in the quarter, up 0.9% from 2019 levels. Performance was particularly impressive, given ongoing disruption at Heathrow Airport and pandemic-related shutdowns in Asia.
The business also swung to an operating profit of €1.2bn for the July to September period. It recorded a loss of €452m a year earlier.
To buy or not to buy
It’s fair to say that things are going pretty well at IAG. And profits could continue soaring in the post-pandemic environment.
The budget airline sector is tipped to lead the rebound in the civil aviation market over the next decade. IAG has exposure here through its Vueling and Aer Lingus brands. The company also has excellent structural opportunities as passenger numbers grow across the globe.
That said, I still believe the FTSE 100 firm still carries too much risk for investors like me. Ticket sales could slump again as runaway inflation puts consumer spending under pressure. Spending on big-ticket items like holidays is one of the first things to fall when times get tough. The ongoing presence of Covid-19 in Asia provides a constant threat too, of course."
IParsnip,
I've got £12k in here and my average is dead on £2.
I'm hoping we all get back to our averages, and make some money, but we need that financial measuring stick to know where we are going.
Hopefully next months results show us they're profit making and this quarterly results are the beginning of things to come.
All the best.
GRQ.
Reppyrr,
I'm not one for crystal ball predictions, as I've tried that many times and I often get it wrong.
Your average Sp certainly isn't an unattainable one, and things do appear to be showing an element of momentum at present.
That's part because the Sp below £1 was just ridiculous, so our uplift has been partly due to that quick correction - especially in light of the revenue figures.
What I'll say is; you may need to wait for the next quarterly figures (and may be the ones after that) for your average to come, but if passengers stay strong and we keep reducing costs then it has to be achievable.
The sheer revenue alone (and paying off debts) wont allow the market makers to hold this Sp in the current levels.
Sure, some think any recession or inflation in costs will limit holiday makers abroad but in my worthless opinion, a lot of folk always make room for a holiday - even during the leanest of times.
And, COVID / lockdown has taught us one valuable thing; and that is how precious life is and it shouldn't be constrained by being locked in our homes.
You'll break even and go beyond. All the best.
GRQ.
Well, I'm £303 up on my £16,793 investment....
I'm definitely not selling at this lowly level.