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People are overstating worries on debt.The facilities are in place and being serviced. Investment requirements are high as the sector moves from mobile to data and thats why money is required to invest. The revised dividend on these shares is still equivalent to about 7% which is twice what you'd get in a direct access high street bank account so many investors will hold the stock regardless of what the share price does. This provides a floor but also limits the upside as trading volume will remain low.
Reuters reporting 7pm tonight that bid is off. Bid parties couldnt agree on price. May be a short dip in share price but long term this is better for small shareholders IMO. After all if there is money in the business to pay for capital or debt to replace our free funds then that money can now be used to fund further growth or even pay a dividend. I dont care if i have to wait 5 years for the share price to get back to the level i paid. i do however object to Mr Morgan attempting to crystallise my losses now.
Well predicted comsman. Re Macau. At the AGM they talked about expanding into central America which would give a synergy with the caribbean. Makes sense to dispose of the peripherals if they can extract value. I like this Board. Don't read too much into Directors' share purchases tho. They are obliged to hold substantial stock as part of their employment conditions.
This airline needs to make up its mind what it wants to be as it lacks scale to be a full service airline. It should give up competing with Ryanair and easyjet on holiday routes and concentrate on its big assets - the long haul US network and its Heathrow services - its the third biggest user there. The ownership of the Irish Govt 25% stake needs to be resolved so that the populist irish politicians and their union cronies can be cast adrift and the airline management can get on with the task of restructuring.
Good results from easyjet today with full year profit up to £310m vice expectation of £300m. Every hope that Ryanair will announce good half year results on 5th November. look for Euro450+ full year forecast. However this is probably already priced in to the share price.
So Mr Morgan feels that the current share price doesnt reflect asset valu?. So his solution is to take the small shareholders out of the game and keep any upside for himself and his mates in Tosca. In 2009 the shares were at £2 and there was alleged interest from Middle east investors but Mr Morgan booted out the old Board pursued a strategy of building big homes rather than apartments or first time buyers homes that would have attracted govt support and the share price has plunged. I will reject any offer below 180p but as the Board controls >54% what say will I have.
I don't hold this stock - I hold Ryanair as the future is with the low costs, but despite the problems with Iberia, we could be seeing some factors going in BA's favour which may get the share price drifting upwards. The £170m purchase price of bmi looks good value. Its allowed an expansion of international routes to the BRIC economies and the domestic service with new routes to Leeds and more flights to Belfast City which will harm Aer Lingus' route to Aldergrove. no more takeovers are in the offing (despite the talk about AA) with both Willie Walsh and Michael O'Leary deciding the costs of M & A are too great and its better to let the poor performers go to the wall and then step in and take over their routes. My money is on one particular eastern european based low cost failing by Xmas. This stock should be 175p by this time next year.
In answer to IBuser and others, CWC suffers the same sector bias as other telecoms stocks. At the AGM the CEO observed that the switch from voice to data is costing a lot of capital, hence the high debt, but will bring benefits later. The institutions wont wait for jam tommorow so are avoiding the sector, hence trading in a narrow band.
Thanks guys. I also see that Nationwide house price survey for August shows biggest rise since 2010. I hope the share price is moving in response to that rather than takeover as I have held my shares for years and bought in when they were >£3 so am heading for a big loss if they are taken over now.