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Oh, and, yes, TUI paid off a final €750m in April for the state owned debt during the pandemic, but the couple of billion debt credit facility that we have, which we used to pay back the German state, is still sadly with us, so yes, we still have the covid debt.
It's just no longer owed to the Gernan state.
ATB.
Hexam,
If a company keeps consolidating the shares in issue, it makes it far easier for them to raise more money and dilute again.
Its a sad, but true, rinse and repeat scenario.
You have surely seen this with penny stock shares.
When you're touching on 3 billion+ shares in issue, diltung the company is a lot harder than 300 million shares in issue.
In essence, companies consolidate and then dilute to pay off their incompetence (I mean debts).
ATB.
I can't quibble about my (almost) £500 dividend yesterday.
My only complaint is I haven't got these shares tucked away in an ISA, which means I'll have to ignore rhe tax man again....
Flipping eck, Shakeineven!
I hope it doesn't drop to £4 as I comically bought in Thursday at £5.07, and then it dropped almost straight afterwards!
I guess the fear with TUI is they will consolidate themselves out of their covid debt, which is an easy option for the company but I hope not.
And, regards peak season;
Peak season may apply for your usual Brit holiday but, TUI makes the lions share of their revenue from their cruise line, which operates throughout the whole year.
ATB.
I think the drop has got to do with the fact that i bought into this share this morning.
Off the mark, at £5.07, and then it drops almost immediately afterwards.
I really am a magnet to this game....
IParsnip,
I feel for you pal. I remember having £30k tied up in an oil company, and that ended up dropping to £3k.
I stupidly averaged myself out of it, and bought another £30k+. I'd never do that again. Sleepless nights. Huge regrets.
That should be the motto of investing in the stock market....
All the very best to everyone
Oh dear. I've just bought £3k as I thought it was worth a punt, but there is quite a large negative sentiment on here.
507p seemed like a good price considering its recent profitability.
All the best.
I'm not sure whether your flights were short or long haul, but there was a recent Rns about confirming purchase orders on more fleets for long haul.
https://www.lse.co.uk/rns/IAG/iag-converts-six-b787-10-and-one-a350-900-options-483ph6xmgvovd6j.html
Yep. A nice link, Dalius.
It's nice to see a £100k Director buy go through.
SS17,
If we hit £3.50 then I would imagine there would be many folk on here dancing a merry dance!
That kind of figure is almost back to its dizzy highs, and from my humble perspective, I think the downward paranoia and market fear of another climate outbreak will prevent that from happening.
In 2006-08, penny oil shares (MXP, RRL, BPC, MTA) spiked from 2p to £1 on what their reserves was reported at.
The whiff of a wildcat well trebled the share price.
Those days of sentiment and talk on SP increases are long gone, but what has sadly remained is; any whiff of bad news and the SP will retrace.
The market changed after the 2008 recession, and share prices only moved on tangible (generally financial) evidence, and they moved slowly.
Good luck with the £3.50 target. I hope we all get our greedy fingers on it...
It's the kind of sentiment from the below link that many peeps in the travel sector believe tourism isn't sustainable.
https://www.proactiveinvestors.co.uk/companies/news/1022054/is-iag-s-record-performance-sustainable-1022054.html
I've never announced on this (or any board) that a share price will 'pop' and or 'explode' on forthcoming news, but to eventually the negativity and or fear of the wider, media consensus of the travel sector won't be hampered by continual concerns of war, recession, oil, and or COVID, then at some point the SP has to revert back to where it was.
The travel sector may be responding immensely poorly to current market conditions of war, recession etc, but what we do know is; IAG isn't underperforming and or reacting to the consensus of the sentiment of the travel sector.
A few peeps on here have slated IAG, and Which I think is unfair.
IAG has performed well. It's paid down a huge amounts not of debt. Turned a massive profit, and the current year ahead looks promising, which means it may do the same on the next quarter.
I believe IAG is a good stock at these prices. If you can handle the long road then there is a profit to be gained.
If you want a quick buck, then definitely not.
P.S I type this from my balcony in Illetas , Majorca.
I'm enjoying a solo holiday (but I can't help myself by trawling the net......).
Maktub.
Just read the Hargreaves Lansdown take on the Rns, and I had to share...
Our view
British Airways owner IAG has had a stonking first half. Backed up by soaring leisure travel demand and the reinstation of pre-pandemic capacity, profits have well and truly come along for the ride.
There's also been successful moves on price increases, despite the considerable pressure on customer incomes. That reflects the tailwind that is pent up travel demand. The second thing to consider is consolidation in the airline industry. A handful of smaller carriers have gone out of business and IAG's acquisition of Air Europa means there's more market for the taking. This doesn't upend the investment case, but it's a helpful market dynamic and shows the benefit of having strong, trusted brands in this business.
There are some things to keep in mind though. While pent up travel demand still has room to run, it can't go on forever. At some point we'll see what normal demand looks like once more. There's a very real risk that consumer behaviour is yet to fully adjust to a world of higher inflation and increased costs. If spending starts to rein in, we could see the strong forward order book come under pressure. The group's also more exposed to business travel than other short-haul focussed carriers, and that corner of the market is taking longer to recover.
Costs are also a drag, thanks to the wider cost increases that come with getting this giant bird of a business back at full height. This means pre-covid levels of operating profit aren't expected for a few years. For now, lower fuel prices should become profit-plumpers if sustained, but this is outside IAG's control and could change at short notice.
Our biggest concern for now is the group's debt pile, meaning that interest payments were north of €824m last year. Debt is reducing and we're pleased with the direction of travel but shareholder payouts could take a backseat to debt management for a while longer.
For now, it seems the worst is over for IAG and the current risks to demand look more like turbulence than a full stop. We're a lot more positive than we've been for some time. But keep in mind, IAG is likely to face the worst of any slowdown in consumer spending.
On a last note.....
I know a lot of us say, "this time next year Rodders....." but with continued strong quarterly results, which prove the travel industry is back to its previous best, then we will all make money from this current level.
And, it seems as though next quarter is off to a good start;
"Roughly 80% of the third quarter's passenger revenue are already booked and 30% are booked for the fourth quarter."
Laterz.
If it had, we may have had a slight rally over the following days but now, the weekend may dampen people's appetite.
Nonetheless, this company is on a road to recovery. It's just a long and slow road.
Have a good weekend all.
GRQ.
And, let's not overlook their second Rns with firm orders of additional fleet for long haul flights.
https://www.lse.co.uk/rns/IAG/iag-converts-six-b787-10-and-one-a350-900-options-483ph6xmgvovd6j.html
Monkshood,
See below report on likely / believed cash balance
https://www.google.com/amp/s/www.sharecast.com/amp/news/news-and-announcements/greencoat-uk-wind-leads-25pc-investment-in-london-array-wind-farm--14097748.html
Https://investingreviews.co.uk/news/iag-share-price-take-off-next-week/
I'm a bit gutted I didn't buy when we dropped to £3.85 but I was trying to have a month off from buying shares!
It's a dirty habit, one which I struggle to break!