Member Info for gruntie

Investing in shares is not a gamble (well, not FTSE350 companies). Even the most cursory look over a balance sheet or recent RNS’ can let you make, at worst, a semi-informed decision which gives you a far better chance that just punting in the dark.

In fairness to IAG, I didn’t even read their recent RNS before investing. I just knew a collapse in SP from one of the world biggest airline groups (which includes 3 countries flag carriers) would come back eventually. A SP can’t keep rising as it did throughout Nov unabated – we’re now at the point where we need the next piece of news before it pushes on again. Until then, we’re stuck in the 155-170p range.

TP - Yea I saw IAG said they were happy enough and also know there isnt a day that goes past that O Leary isn't doing something to upset someone (I quite like him tbh).

Maybe IAG offer all us Brits a pretty penny to relinquish our shares, so they conform.. wishful thinking eh?

O'Leary seems to have made a valid point when he's discussed IAG maybe having to off load BA after Brexit. EU Rules force airlines to be majority owned by EU holders. According to RTE, 39.5% of IAG was held by non-EU as of Oct (Qatar obviously being the majority there) but they didn't specify what % was held by Brits whichwere classed as EU holders which would then be non-EU come Jan 1st. Surely more than 10%?

Cant see any UK gov allowing BA to not be "British", but cant see how IAG can keep hold of all their airlines within these rules?

Thoughts?

Homeserve is the smallest FTSE100 company with a MCap of over £3.6bn (so that's a £8 AMGO Share price). Fisher James & Sons is the smallest on the FTSE250 at £455m, so I'd say hitting the FTSE250 would be the dream considering where we're at today.. although a £1 SP would see us get there.

You'll be getting near 43p a share if you hold till tomorrow in dividends. If you sell now, you'll make c. 7p per share held. If the SP is 12p or more tomorrow you'll be better off holding (12p is what it could be sold for + 43p dividend = 55p current SP).

Under 5p SP and you're worse off than your buy in (43 div + 5p SP = your 48p average)
5 - 12p you would've been better selling now (43 div + 12p SP [at best] = 55p todays SP)
over 12p, you're better holding (43p div, + 13p or more which shares can be sold at = total 56p a share which is more than SP right now)

I personally think there'll be a huge drop (30p+), but dont think it'll fall as much as the dividend pay out, and once everyone who bought for the divi has sold, it will march on as usual as people have suggested back to high teens to low 20's I think.

Those maths might be a bit dodgey, so just double check.

Palace, Dividends from all companies are paid regardless of where the shares are held.

The benefit of holding the shares in an ISA or LISA is the dividend (and any profit made from the increase in share price once the shares are sold) are not taxable. If you earn more than the dividend allowance in a financial year, you'll likely need to complete a self assessment to declare the monies paid to you and for you to then pay any tax that falls due based on your tax bracket.

If possible, I would open an ISA if you dont already have one, and "Bed and ISA" your shares there. This literally means your broker will sell your shares and immediately buy them back inside the ISA. You'll then be in the tax free ISA wrapper, and likely only have to pay 1 dealing charge rather than 2. However, you may be liable for Stampy duty again on the purcahse.

Completely agree with Dean. It's way more important we can produce and export high precision aerospace parts worth billions and support highly specialised jobs, rather than argue over what boils down to a couple of fish worth pennies. (Aerospace was used to try and draw a line to IAG haha)

Langer, If you're broker didn't notify of the RI, I would definately change broker (Although I would suspect theres an email or secure message about it somewhere). Whilst people can invest in stocks and shares, or even trackers, and forget about them until needed, it's still wise to check in on them from time to time so if anything radical has happened you can adjust before getting a nasty shock down the line (especially with listed companies going to the wall etc.)

153p. Small decline as FTSE futures are currently showing down.

As most have said, it's the capital growth most are interested in.. however, when you look at AMGO '19 financials, AMGO produces some amount of cash and profit.. 40% profit before tax (£111m off £270m rev). Whilst they have confirmed they use a mix of borrowingsband their own cash to issues loans to customers, this is not a capital intensive business.. this isn't a housebuilder, airline or network of shops that require alot of money to be tied into their operations. Once AMGO can't issue any more loans (or doesn't want to) that's when the dividend would probably start as the cash generation would be immense at the APR charged.

Dividends will also be what attracts big funds such as pensions where they're looking for a reliable income.

Hi Vine, thanks for confirming. Makes it slightly easier as it means don't have to worry about days with huge spreads. I was hoping it would be as advised.

Dean, I've read I'll have to sell and buy at the market rates, this stops people getting a lower value in the ISA and thus keeping more of your allowance for more stocks. I take it this is more of an issue if you bought a share for pennies decades ago which is now worth multiple times what you paid. However would be a huge benefit for people holding AMGO before price crash, as you'd move the stock for 10p as opposed to 30p+ (if you haven't averaged down since).

Looking for a little advice if anybody knows or can assist.

Currently hold AMGO shares in a standard dealing account with AJBell, and want to move these into my ISA (I'm currently porting an ISA from nutmeg to join my AJBell ISA). I've read you can "bed and ISA" shares from one to another, but does anyone have any experience with this? Reason for concern is some days there can be a considerable spread (it's over 1.2% at close on Friday) so wondering if the broker will sell and buy it themselves as opposed to getting the MMs involved and losing shares or £ due to the difference between bid and ask.

Will be speaking to AJB come Monday as I want to limit any gain ASAP and get AMGO into the tax free wrapper prior to more good news soon.

WASU, the main thing to look for is companies that are UK listed, but not based in the UK. For example, Glencore is Jersey, GVC is Isle of Man, Experian Ireland and TUI Germany etc.

That ombudsman graph just shows how claims management companies have completely pivoted from Wonga and Sunny etc, onto their next target (payday category has tanked, whilst guarantor has sky rocketed). If people really have been mis-sold something (even after lying on their applications) then they deserve redress, but they should have to do it themselves rather than palming it off to a CMC and take a very hands off, no risk approach. With regards to the CMC's, they either shouldn't be allowed to operate on a no win no fee basis, or if they do, they have to stump up the £500 odd fee the ombudsman charges as a deposit, and only get it back if the claim is upheld. Surely this would slow the stem of flow of chancers or downright fraudlent claims if this affected their cash flow too?

NotToday, I dont mind someone playing devils advocate as it makes sure I'm not blinded by just posisitive news or spin. But, when people report claims being filed as complete when its not or missfiled to get more time etc. I would question who is providing this information. It sure isn't a customer who's going through a claim as they cant have any knowledge of this. Even if it is misfiled or marked as completed in error, why can't these be genuine mistakes by a team who are clearly under the cosh with claims.

With all reviews about Amigo, as some have discussed in other threads, I would take everything from a customer's point of view with a handful of salt. It very rarely a customer is going to leave a 5* review saying how reasonable the loan was and how convenient it is to pay etc. People just expect that, but they're quick to leave a bad review as soon as something doesnt go to plan. Looking through thier reviews, its only about Redress and either how long its taking (if its a bad review) or how much they got and by whom (if its a good review).

Let us know where this information is coming from, and I'll gladly discuss.

Bumblebee, I completely agree - most are probably only sticking a claim in because, Why not? Theres seemingly no reason not to if you've ever used one of these companies. I work with a fella who had plenty on Wonga and Sunny loans. Well paid lad and never run into financial trouble - just needed the newest stuff and couldn't wait till payday. He got a Wonga rebate and Sunny collapsed before his was finalised. Not once has he said he's struggling now he doesnt have a second windfall but rather an attidtude of "ah well".

I think the fact some people have repaid their loans in full, some many years ago, are doing it for this exact reason. By its very definition these were affordable becuse there were repaid (OK, I get they could've struggled in other way) but its unlikely these customers would've got loans via other means. Then what? Food banks and further defaults because someone struggled for a couple months? Amigo and others serve a purpose and if they were to collapse, I think alot of people would struggling accessing mainstream funding.

Just my 2 pence.

Out of curiosity, whats your target price to sell? I've told myself to sell at 250p if/when we get there.

Well I'm holding both so fingers crossed!

Ian, I definately agress selling any hotel assests now would be hard (and they're typically a higher margin than the flying aspect), however my first thought is perhaps the Chinese would be likely takers to expand their ClubMed offering after snapping up Thomas Cook.

Its seems odd that TUI would only want to do an RI when the Share price recovers and bookings start to pickup. To me, I'd think when revenue starts coming through the door again, you wouldn't need the RI as after IAG and RR, a rights issue is usually reserved for when there is no revenue! (we'll ignore Mergers Acquisitions reasons).

Hi All,

Absolutely don't want to burst anyone's bubble, but I cannot see how IAG gets back to 300p either short term or mid-term. I'm an IAG long term holder, and took up my allocation of rights and I do fundamentally believe IAG will come through this as a stronger group, but my rationale for it not hitting 300p for years is this;

- Most airlines and commentators are hovering around the same sort of date for expected 2019 levels of travel to resume - maybe around 2023/24
- IAG has taken a battering this year with the cashburn and RI, albeit cashburn should not be such an issue once countries start opening up.
- IAG issued nealy 3 billion additional shares! When there were only 2 billion shares in issue, the company had a value of c. £12-13bn. If we're saying 300p x 5bn shares is £15bn value and there likely wont be dividends for a while as the IAG coffers will need to be refilled, I can't see how IAG adds £2-3bn in value from its pre-covid peak?

I can see IAG getting a small bump IF vaccines start getting rolled out to the UK population in December as planned/leaked (maybe upto 165-170p) but, nothing worldwide in terms of travel will change for the remainder of 2020. Countries will still be locked down and travel restricted. I would be glad to see 200-220p come middle or end of of next year as more and more people are vaccinated and the world opens up. Whilst not close to 300p as some people suggest, thats still close to a 40% rise which will see me happy.