RE: IAG SP up over 20% in less than 2 weeks...16 Jan 2023 16:43
Lloyds,
Why it dropped that low? Who knows. You could ask yourself why it stopped dropping, paused and then returned.
Pre 2008 market crash, I found certain stocks would rise on sentiment alone, but now the market needs consistency, which makes more sense.
Shorters / market sentiment / apathy / economical climate, they all play a part, but that is when the most savvy of investors pick up cheap stocks.
The market can't unfairly plunge a stock when their fundamentals and hold in that sector won't waiver.
For me, that is precisely why l bought into IAG.
I'm sure many may quibble about the speed of the SP returning to where they think it should be but I have time and I bought it when the pandemic started to turn.
IAG is a major brand and they are buying new fleet, expanding their airline and occupying new space.
Sure, they have debt but it's being serviced, and the desire to travel, after such a depressed few years of travel, has never been stronger.
If nothing else, the vile COVID pandemic has taught us not to be confined and to live out lives, in spite of interest rates, the menace of Putin, economic climate and housing market.
People may offer caution with spending but holidays are escapism from every day life, and seemingly that won't be compromised.
All the best