A Tale of Two Shares6 Jan 2021 16:21
Its no secret from my history what shares I have interests in.
Here's a tale of two of them.
Easyjet. It had been flying planes back and forth out of the UK during the pandemic. Then as of last week a Full National lockdown. Same in Scotland and Ireland and with people advised to stay at home. Last night an announcement that you have to be in a possession of a negative Covid Test before you can get back in the country. Burdensome and discouraging to travel. Lots of costs involved in running an airline what with leased aircraft, 2 pilots and air hostesses fees, landing slots and jetfuel and all with the price of oil on the rise. Some countries only last week expressed a reluctance to let UK flights land due to a highly contagious new Covid varient. The only one plus point overnight being that there is the mass rollout of the vaccine coing with the AZ / Oxford vaccine.
The Easyjet share price is up 6.39% when I looked.
Cineworld. Already has taken mitigating action with all its cinemas closed, staff furloughed or made redundant and so lockdown cannot affect what is already closed. Cost limitation exercise whilst awaiting its cinemas to reopen and prudent. It is funded and waivered until June. Neither is it impacted by the need for -ve Covid tests to re-enter the country, unless you are thinking of flying to Israel to watch a film. It also finds itself on the receiving end of the same good news last night of the PM's accelerated mass rollout of the vaccine and more details to come tomorrow, Thursday. It will be one of the biggest beneficiaries of any vaccination program for it has been waiting for vaccine rollout news since October 9th when it closed its cinemas.
Cineworld up 0.74%
It has to be pointed out that vaccines for both represent cures and mass rollouts will ensure a swifter return to normality and without the need for lockdowns or restrictions.
One also imposed social distancing (CINE) to limit transmission. The other still happily packs them in sat rubbing shoulders with the next passenger.
Having waited since October's closures for vaccine rollouts I shall happily now wait for the vaccines to show its impact in the daily figures we are now getting.
Incredible really how things initially get translated in the City of ours, but then again the comparison only serves to reinforce the value gap that presently exists in CINE.
You can transpose Easyjet for IAG (British Airways parent company) or TUI of you like.