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Just my thought! ---- If anyone is invested here and can't afford to take up all or any of their rights , it may well be prudent to sell some of what you've got at the moment while the sp is near £7 and use that money to buy your rights at £4.88? Just my opinion so dyor.
avocet --- that's right you agree with me at last, it was much easier to attract investors when the share price was CHEAPER pre consolidation than it is now the price went up 10 fold. Investors total money investment remained the same of course at consolidation but has now dropped due to the detrimental impact of the consolidation.
avocet --- you obviously don't have much idea of share dealing and share sentiment and the implications of company debt and the implications of share consolidation on a company with huge debt or how markets work and react! Nothing more to be said about your naive market comprehension or should I say lack of it! As regards my intentions you really should read my posts to stay up to speed. Dear oh dear avocet , you really are an amateur at this game!
Spammy ---- I believe the opposite applies in TUIs case because they are a company with huge debt and making the sp 10 times higher will deter investors because they have to pay more per share to buy into a company with that debt.
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?