dear all messy's on here, if the RI price is 10p per share when the SP is say 170 then you have nil paid rights of 160 which can be traded like you trade normal shares. A 'right' is a valuable asset!
MDM thanks for this post. Why is everyone so concerned about a RI. Personally i don't think it's necessary with £8b in equity but maybe is sensible forward thinking. The cynic in me also thinks it's been put in there due to the ongoing stuff with the TUs!
Not sure what the big fuss is about rights issue except for the uncertainty regarding price level. All shareholders will have the option to sell their nil paid rights anyway if they don't wish to exercise their right. Far as i'm concerned the results were quite good only a 2b operating loss for Q2. The exceptional items for the 6 months (fuel hedging) were already known. The SP was driven down more by PIs panicking about RI (price was down to 170 by 0815 then stabilised) I think big MMs will be actively scooping these up next week although i'm expecting a slight dip down possibly on Monday
wonderful results, big rise today. I even think the RI be well received as shows forward planning & is backed by Qataris. Only going Northbound now this SP. 215-220 by end today
If this share were to dip below 160 then something hugely wrong. Huge resilience at 160 level when it was tested before in May, similar to the support at 180. would need to be appalling/unanticipated results to test this level especially as all other negatives are already in the price!
mind you stability in this stock is unheard of & tomorrow this will be 2nd only to Lloyds in trade volumes, which will be good if it's a positive report
all i hope for is it remains stable, any upside is welcome of course but personally i've had enough of the uncertainty about RIs and all the other nonsense. All the US airlines seemed to improve after dismal results. i think the markets just need to know what's going on then we might see some true values coming through!
WW isn't daft, he'll know a RI won't be well received & would be bad for the brand. Same reason he doesn't want Govt bailout. Should be no need anyway as there should still be at least 7-8 bn in cash reserves. i think his approach will be, it might be something to consider later on if no recovery in coming months!
good top up today at 183. was cautious about this but huge support for this at the 180 level. with all the negatives out there this is safely on the up till Friday at least!
key issue is cash burn level & sustainability as i see it. Look pretty sound for 18 months to me based on q1 but depends on that burn level! i think a loss around 2b is expected & already factored in!