RE: WD NO 1 LCC19 Dec 2023 17:57
"amazing how thick some people on these sites -should carry a public wealth warning " you must have been looking in the mirror wwhen posting your comments. Seeing that you have been issued with a public wealth warning 2 years ago would have hoped you might come up with something more original.
Do you really have to HIGHLIGHT YOUR IGNORANCE ON MARKET MATTERS. As posted on numerous occasions how a SP reacts depends on the purpose of the rights Issue. SPs have been known to INCREASE following a rights issue when a company is using the rights issue funds for acquisition /expansionary purposes. As regards your star picked recommendations ;
IAG issued 2.74 billion shares in september 2020 with such funds essentially needed to shore up it's Balance Sheet, reduce leverage and enhance its liquidity. IAG was in such a poor state of Financial Health the rights issue price was set at a DISCOUNT OF 45% to it's then prevailing SP. SAYS EVERYTHING.
E JET raised 1.2 billon in 9/21 by means of a Rights Issue , in addition to a placing of 419 mill in 6/2020, to shore up its Balance Sheet and add much needed liquidity to it's finances.
Ryanair raised 400 mill by means of a rights issue.
As regards the respective health of the respective Airlines , IAG raised 700% more Finance by RI than Ryanair while EJ raised 400% more than Ryanair. Which only goes to PROVE the far SUPERIOR FINANCIAL STRENGTH of Ryanair vis a vis IAG and E Jet.To add insult to injury both IAG and EJ had then to rely on government bail out money to secure each of their company's future while Ryanair ,as you well know, did not .
So Doomster , are you still of the opinion that Rights Issues should be discarded in analysing a company's SP performance , in that they should be offered by a company's shareholders for free in the form of a grant and that the said shareholders should not have the cheek to seek shares in return for their grant, whose purpose is to rescue the company from insolvency.
The sad FACT is that Rights Issues must be taken into account in analysing a company's SP performance. The FACT that IAG and E Jet HAD TO RESORT TO SUCH SIZABLE RIGHTS ISSUES to ensure THEIR SOLVENCY reflects that and confirms why IAG SP has to increase by 184% to reach it's prior peak and EJ must increase by 134 %. Ryanair ALREADY THERE ,again reflecting their superior financial muscle , with UBS now putting a TP of €26 on Ryanair.
Time to get your head out of the sand but, being a centurion, it is understandable.