Member Info for Paddyboy1

Holding up very nicely this today i think, considering all the gloom around. Hopefully the 1430 Dow battering won't happen!

Deos i got a similar amount to that at average of 238. if this share is 150 after Q2 results something crazily wrong with company. I honestly don't see it. A RI seems totally implausible to me based on Q1s figures & i can only see it being suggested as something if the COVID stuff goes on this way into next year. I expect it to be happily over 200 by end of week!

RI is highly unlikely & the announcement was made that it was being considered to quell silly rumours. My advice is to wait for concrete reporting of IAGs true financial position in this Friday's Q2 results. According to their balance sheet/Q1 financial report, they have enough liquidity now to last at least 18 months so no need for panic!

point i was making is they follow the same trend & IAG's share price over last week has gone off the trend line & this will correct itself either with a big dip in US air stocks or a rise in this one. Personally i expect this share to dip on Monday due to all the negative stuff, but anything below 180 would be bizarre i think & i'd buy a whole load more at that level!

so when American Airlines is $9 & United Airlines is $18 this share will hit 160 & not before!

i like to talk positive on here. too many gloomsters. For any of the chart lovers on here, take some respite from the fact that this share follows US air stocks (esp AA & UA) almost to the letter. All stocks reached a tanked low on 14th/15th May. All stocks reached a ramped high on 8th/9th June. This stock for a few days has bucked the trend for a few days that is all! On Monday i expect this stock will be heavily shorted, but the markets in general will be at 15th May levels again i suspect due to geopolitical stuff. This nonsense will blow over in a short time, i've no doubt!

2 weeks back quarantine applied to every country on the planet & share was 220-230.The RI speculation is the price mover here at the moment. Not great news i agree of course, but it's the cashcall stuff which will make this a bumpy ride until Q2 results & proper confirmed news!

Monday's price action will be panic sells playing into the hands of big market makers who have fuelled rumours of RI. Spain quarantine stuff is really small beer here!

it's just sentiment & doom/gloom mood Deos. Just wait till Friday results would be my advice. Only act on confirmed stuff. bigger players trying to provoke panic sell here to drive price down. Happens all the time in the markets. Spain quarantine thing is not big news & it's already in the price anyway!

well it didn't rise much when quarantine was lifted so don't see why 1 country being back in quarantine will make any real difference here! put in quarantine everywhere then shares will probably go back up in price. everyone here wanting to buy at 80p to 120p. it won't happen & deramping on here won't make a difference as is all controlled by the big institutions what price this is at!

classic opportunity for big players to make guaranteed big cash as they control the market. use this rumour of RI, sell big chunk of their stock to knock price down, panic sell by small investors Monday morning. Big boys hoover up stock at low price. results turn out better than expected Friday. shares up, big boys pocket cash. simple really!

An Odds On Classic Noob!

Agreed, i don't believe there will be a rights issue unless the financials we have been provided are wrong. Back at end Q1 cash burn quoted @178m per week. This must surely be down to 100-120m per week with furlough & other measures, so 1b gives 2 months operating costs. Therefore based on the liquidity of 10b, that is 1.5 years of operating. Hardly signal for urgent cash call. The statement has been made to stop the rumour mill causing mayhem IMO. If IAG needs a RI then lots of other companies will need them too!

the whole thing is a bizarre enigma Teddy, all the truth will out next week. i'm doing nowt till then!

Sharefall, these are my sentiments entirely. I was extremely surprised to hear this today, as one of my main rationales for investing here was the strong liquidity & balance sheet fundamentals. I have always discounted anyone on here suggesting RIs etc as simply no need for them. I think IAG have had to make a formal statement due to the rumour mill & as such have left all options open. Will be a volatile share this now due to the uncertainty until the results come out next week!

well that's the question. Is it like what they did with RBS as a good example, where Government are largest shareholder, therefore diluting the existing shareholders equity??

on slightly different note, if IAG were to get a government bail out, how does that affect shareholders? is it the same effect as RI, i.e. share dilution?

SpoonKey, This is my concerm too. If they have (as they should have) over 7b in equity, & another 1b of AMEX deal, why the need for cash raise? if they have burnt over £3b in 3 months with all the furloughing etc then yes, some serious questions arise. Personally i think it is erring on the side of caution if the pandemic were to continue as it is way into next year. If this is the case, that is a positive thing, if not then share price will be seeing red!

Goldy, good to see some sensible talk here, 250 after q2 results is around where i'm seeing this

Amazing how all the bargain bucketeers come out when dips below 200. atrocious day on FTSE anyway which in itself justifies the 10p fall. I don't understand the fuss here. The statement confirmed they had liquidity of £10b at start of Q2, so worst case scenario they still have over £7b. Loads more than other airlines. considering options for future financing during an unknown pandemic is prudent business strategy. The big players will see that i'm sure & SP will perform accordingly. Q2 confirmed figures will drive this share i believe & provide at least mid term assurance for investors!