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..Avons prospects undoubtedly now helped, either indirectly or directly, by the US house approval of a $61bn aid package for the Ukraine war effort. Be interesting to see how the markets react on Monday (defence sector stocks that is)
..I'm surprised more investors haven't cottoned on to this share, + 37% YTD. I guess a combination of company stability, securing new orders, higher revenue forecasts year on year, improved broker ratings.. Any more for any more. Glad I didn't divest some months ago
@Geng, I tend to agree: "After many false starts...". I mean to say, this SP defies all logic, who of thought it would nearly double in a matter of weeks after the fall at the start of covid-19, when there was no end in sight to covid!! in fact someone once said to me "never try to apply logic to share prices". So the fact this SP has risen 10% since the falls post 29-Feb [down to 1.41], for reasons that remain a mystery to me, other than the anticipation of the budget news.. who knows, maybe this is the start of a recovery to a fairer share price
@NuckyT .."They could get debt down to €5b in the blink of an eye on Thursday if reports are correct. Why are they doing this? They've done this for as long as I can remember - I seem to remember ~ £8bn in the coffers during the 2008 financial crisis for example. They do it because the airline industry is so risky, they do it to hedge against eventualities and so they don't become the next airline to go bust. That all said, I expect they'll announce they'll use some of the €12b to pay down some of the debt.
..can't quite understand the collapse in SP given the results, especially as they exceed market expectations... I thought this was one of those rare SPs that actually seems to follow logic, very odd. I suspect it'll rally during the course of the day once Investors have digested the news and the forecasts - we'll see...
My theory is: the last 2 - 3 sales are what was expected or rather the Directors anticipated, hence bought in.
I sense there was a lot of immediate profit taking once the price had reached £10 coupled with the fact the market is now watching to see if Production can now deliver on the agreed Sales.
All in all it's a positive story, growth and SP increase will be slow, organic, and progressive.
A buy-out isn't on the cards in the short to medium term, at least not instigated by AVON - IMO.
Skindle, you are right IMO. Despite all sorts of IAG positives repeatedly mentioned on this board, the geopolitical situation is out trumping the lot of them and will do so for sometime to come. Some other airline stocks do have better flurries northwards on occasion, but they are relatively short lived, besides I don't think BAs customer service record is helping them much at the moment either.
I do have a reasonable IAG holding, I am not shorting. I will get my capital back and some profit, but it'll be a long haul or wait.
I can't help but feel/sense this SP is like a coiled spring and one day it will unleash, but & as you say No1Scarlet, the question is when?
I stress I am a proponent of this SP and I'm heavily invested (by my stds), BUT then there's the other side of the coin. Many have repeatedly mentioned factors such as the lack of divi, debt etc. But one thing that's rarely mentioned is their customer service, BAs in particular, which is abysmal and matters if you're seriously considering a significant, long range investment in IAG. Then there's the omni present geopolitical tensions that could spark the next Ukraine/ME conflict... it matters as it could kill off certain lucrative routes overnight.
In summary: I don't believe you'll ultimately ever lose money on IAG, but how long it'll be before you get your money back or make a significant profit is anyone's guess, but expect a long wait, I am.
It is indeed perky, I don't know or have any theory what's causing this, though plenty of very professional advertising on LinkedIn these days (pushing the current/future products and organic growth). Be interesting to see if it holds > £9
I do think something's afoot, not a buy-out as some are suggesting, but something along those lines - no idea re the timing. I also note there was another non-exec director buy today, small volume, 2,000, but a buy nonetheless. You could be right Trendz, "we've seen the bottom"
..should be an interesting day tomorrow (results day). I suspect the results are good, or rather their trading statement, 30-Spetember, already suggests so. Hopefully there's a spectacular announcement, else I suspect the SP will be flat, if not fall, i.e. when results are in line with market expectations the price dips. a little
I suspect the results (and I don't have any inside info btw) will be flat and in line with expectations (which typically deflates SPs). That said there could be some sort of announcement woven into the results which might help stabilise or even boost the SP - we'll see. Holding for now. Views
..don't disagree with you Evan... Results on the 21st, though I tend to think they are already baked into the SP weeks beforehand, knowledge of same always seems to be out there in advance, I don't know how, but it is. That said, I've upped my view from 'weak buy' to 'buy' (IMO)
..(all) what's your theories on todays drop? IMO - perhaps some of the froth from the last 6 - 7 days of climbs being blown away.. Still fancy this share will head northwards; no signs of director sell offs, defence sector stock is a sound place to be at the moment (sadly), and I suspect there's some sort of announcement waiting in the wings.
Hmmm I don't disagree with your comments. But it could it just be the obvious, i.e. the situation in the ME which is clearly going to get worse before it stabilises and hopefully gets better. That pushes investor sentiment to believe any defence sector product will be in high demand - regardless of the specifics. I defo. believe this share will continue northwards in the short term IMO
Evan.. "no" I don't think so. I think the jump is for one or two reasons, i) the situation in the ME [given they are a defence sector stock], ii) a statement affirming Avon isn't about to go out of business [far from it], and iii) as many have pointed out on this board, the SP represents good value
Ninespot, on the one hand, I do agree with you as they are a defence sector share - but their product range is quite narrow. That said Bae Systems that makes support combat vehicles, provides ammunition, precision munitions, artillery systems and missile launchers etc etc only made 7.9% whilst Avon = 13%. Avon seems good value to me at the mo.