Member Info for Lordy2020

A very sombre article in Investors Chronicle on Thursday - Not a good read for investors!!

https://www.investorschronicle.co.uk/tips-ideas/2020/06/25/aa-running-out-of-road/

Thanks very much for that.

mariog - sorry if I am asking an obvious question, but is it a good thing if the bonds are trading higher?

Congratulations, your clearly well ahead of the game!

As we all know investing is tricky at the moment and the markets are being spooked by any 'bad news', regardless of its actual effect. In recent months we have been here with the AA before, price rises and price falls, most of it based on market sentiment, not the actual performance of the company. In a previous post, I referenced the fact that its unlikely we will now see any real upward movement until the company report on H1. I stand by this, but at these prices this company is seriously undervalued. I'd buy more but the pot is dry so will sit on the 100k I currently hold and wait.

Wait for the H1 data and report, this will make a positive difference!!

In other words nothing concrete, tangible or objective!

And please do tell what is you know as your basis for saying this?

Unless something significant happens in relation to the wider market (likely to be a negative rather than a positive) I cant see much movement until the first week in August when the next trading statement is due. So its a wait until then. I don't think any announcement, even if there is one required under the regulations, regarding Parvus will make any difference to the price. Just need to sit tight and be patient (tricky at times I agree)

I agree and this share seems quite static at the moment. I don't think tomorrow will make much of an impact either way. The question is really - for those who can, is it maybe time to sell and invest elsewhere or wait and take a longer term view? Personally I'm looking longer term, but the debt burden does give cause for concern. However I do balance this against how cheap the stock is, together with a ultra low P:E ratio

Thanks JT - this presumably confirms that JP are acquiring an additional stake so they can sell at a higher price?

Very soon! Friday early!

Interesting that a hedge fund management company Davidson Kempner are buying AA. two elements of their overall investment strategy are to buy up 'distressed investments' and 'merger arbitrage'! I'd be interested in other peoples views as they are buying, as opposed to shorting as some other are.

Whilst the AGM on Friday will cover off the standing items required there will also be a trading update and this will be positive. Activity levels sine the end of February have been constant and even higher in some areas of the business. Its true that a lot of sales, batteries for example, have increased, but also membership potential has been positively impacted by the fact that the AA have been assisting the NHS and NHS employees directly with free assistance. This in should turn will generate greater numbers who will become members over the next 3/6 months or so.

As a result of increased performance its realistic to expect greater value for shareholders. In addition, as reported in another post, the possible finance re-structuring that looms next year will be achieved with favourable terms for the AA. Personally I hope to see 35-40p within the next 3 months.

JT - I totally agree, taking advantage of the overall market sentiment.

Hang on everyone this is going south big time today! Paper losses looming. Remember though they are only paper losses!!

The profit takers will be back in again soon! I expect this share to drop again over the next couple of days, prior to its acceleration towards 35p

Thanks JT for posting this. It will be interesting if other shorters start to reduce as well?

Why continue to sell at a massive loss? They may well be adjusting their wider portfolio and re-balancing.

They do have a lot indeed. But they may not be looking to sell them all! We will only know the true picture over the next few weeks.