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Avocet ---- I dont mind disclosing my position at all. No I havnt sold yet . Prior to the 1:10 consolidation I was hoping the sp would reach my average of around £2 and if it did I would have sold. Now I need an sp of around £20 to reach my average and if it does I will sell. I could sell now at a loss but I am waiting to see what the terms of the RI is going to be before I decide as if they are favourable I could pull back on the losses by selling my entitlement and shares at the same time. Currently holding around 2000 ( 20000 pre consolidation ). I am not scared about the economy at all but i am scared of the massive debt that Tui have aquired and the plans that they have to reduce it which is at the detriment to investors. What is your position?
iParsnip --- The drop was always going to happen after the consolidation and with the threat of a future Ri or Ris as I predicted a while ago in my posts. To pump the sp up by 10:1 from around £1.75 to around £17.50 was looking for trouble as it was coupled with the future dilution or dilutions which will increase the the quantity of shares again. ( there could quite easily be 2 or 3 or more future rights issues --- we just don't know and investors don't like the threat and the possibility ). We could get the situation where quantity of shares have been reduced from approx 1.5 billion to approx 150 million and then increased again to near 1.5 billion by rights issues. It's a future threat that investors don't like and the sp is going to suffer accordingly. As an investor it's not nice for me to say but its just how it is at the moment. This is definitely a very long term share to hold in order to recoup our losses.
Unfortunatelt the truth hurts as i can see from the reaction of a couple of posters on here to my posts. I am a realist and it is no good pretending everything is all dandy and rosy with the situation with Tui when it is not. When a heavily endebtened company consolidates at 1:10 at a sp level of around £1.75 it immediately sounds alarm bells and when that consolidation is followed by AT LEAST one rights issue then those bells are ringing loudly. It was obvious from history how the market is going to react to this. These are facts and it is no good pretending otherwise. We were warned by Tui of there intentions a while ago which is why the sp has been subdued since. Let's hope we can get out of this hole and move upwards but I can't see it being anytime soon.
Avocet its now down around 8% , around 5 times it's main competitor Jet2. You need to move back into the real world as you don't realise the impact of a consolidation at the level they did it at. You shouldn't be investing if you don't have the knowledge.
"The consolidation of shares is a prerequisite for the capital increase" I would suggest that this is because the relevant drivers of these events suspect there is going to be significant downward pressure on the sp?
It all depends if you are going to sell your holding and your rights or wanting to hold your stock and hope for a rise in the sp. Well if you can't afford to buy the rights then you could sell the rights and buy more shares with what you make. You won't be able to buy enough to keep your average but at least you won't be as diluted and then hope the sp rises. The rights issue is depressing thes sp but my biggest concern is the 1:10 condsolidation. After , the sp will be so high ( around £17.50 at today's price ) that it will not be as attractive to buy and will be more susceptible to big sp drops which in itself will suppress the sp.
Tui is OBLIGED under repayment agreement to work towards one OR MORE capital increases by the end of 2023! Capital reduction and then what is probably more than one capital increase this year. The market is going to love that --- NOT!
Not a very dynamic Rns and a bit low key. Dosnt fill me with confidence about the future. I get the feèling we are not being told the FULL picture. A doubt in my mind about wether Tui are thinking about taking the company private!