Good news. As vaccination numbers rise and cases fall it will become difficult for governments to justify travel bans. Variants independently evolve in all countries as has been seen which means travel should not be impacted for fear of variants.
There was a fear yesterday that this would be sub 800. Glad to see this finish in 940s. As the vaccines are proven to be effective and vaccination rates picking up, there’s no need to worry that it will slump to 600 again. Most likely it will be 1000+ this week and when all travel restrictions are lifted it would be back to its pre pandemic price of 1500. Imho.
Skindle
The reputed website I trade on advises people to have at least 5 years time horizon for investing in stocks in view of various risks - market risk and stock specific risks. Someone bought the stock last week only and today it went down I don’t think it’s a very fair analysis to conclude that someone needs to be blamed for this.
Wizz and Ryan are down about 2 to 2.5%. One would have thought them to be worse performers if Europe is closed for summer tourism. This suggests that market is looking beyond the summer of 2021. With more positive news coming in days ahead on vaccination milestones and falling cases, the sentiment will definitely get better, and push the SP higher. We are not sitting very far from 220 today, it could be back there later this week or next. DYOR.
https://www.bbc.co.uk/news/health-56479462
AZ vaccine found 79% effective in US trials.
Expecting £1+ tomorrow
I don’t hold this but will be looking to get in tomorrow. This might slip to 350 at the open and retrace to 370 by close. Should be back to 400 in 2-3 weeks time as Europe makes progress on vaccines and cases start declining due to lockdown effect. A few volatile weeks ahead. IMHO
Rogueriver
You seem to be unable to properly weigh pros vs cons. Your arguments look really ridiculous.
How does the selling of HQ building reduce BA brand value? Most companies are selling up some of their office space due to increased work from home. This cost saving is a positive and should be put in pros not cons.
1B bond issue no doubt adds to debt but it is cheap debt and shows how easily IAG can mobilise money when needed. It’s RI was also oversubscribed. Which means both lenders and shareholders have full confidence in the company.
Strike actions are routine manageable events.
Norwegian founder to start again long US flights - the very reason Norwegian failed is that it applied low cost model on long haul which didn’t work. Why would it work again?
Rising fuel costs - they seem to move in both directions. At the moment they have fallen a lot from earlier highs.
I was reading on Bloomberg that market is looking at the likely revenues in 2023 for recovery stocks and base their valuation on that figure. Which explains why most recovery stocks have risen so much, some higher than pre pandemic. IAG looks massively undervalued looking at 2023 and I won’t be surprised if it reaches 300 by summer.
DYOR. I am often wrong.
Seems the biggest worry at the moment is rising cases in the mainland Europe. UK and US are doing well with falling cases and rising vaccinations. EU countries are currently about 10-12% vaccinated. When they reach about 30% vaccinated figure the cases will start to drop due to vaccine effect. This may not take very long. Could be one or 2 months away at most. VaccIne supplies are catching up. Then we’ll see this share and all other recovery shares soar. Just neet to sit tight for a few weeks.