RE: hellyeah28 Jun 2019 11:09
I had a substantial holding in AA earlier last month - 30k to be precise, which went to 20k. I had to sell because despite the fact that the company are doing a lot of good things and are a very well known and liked brand, the debt mountain will eventually become unsustainable. All they need is a fall in EBITDA one year and to be unable to pay their debt, and they are finished. It was with a very heavy heart I sold as I do believe they are really good company - but debt approaching 8 x EBITDA is simply too much! I feel for shareholders who are hanging on, but the fact it is the most heavily shorted company on the stock exchange says something. I put my money into EasyJet along with £60k more... nearly made up my losses, but this isn't for the faint hearted. Look at trend on AA's price graph, its going one way in the long-term.