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A bull trap today imv. This is likely to be a very tough week for easy. Lockdowns, increased quarantining and increased testing costs are not usually a good thing for airline shares.
northscott, did the health secretary really say, 'the mentally ill have been slow to take up the vaccine...' ? If true, I think you should be grateful that he didn't mention you by name.
Easyjet headlines tomorrow will likely be leading with; '...£1.2bn loss'
That ain't the reminder shareholders will appreciate. Might wake them up though.
Travel restrictions are being put in place across the EU and beyond. Some countries are banning or quarantining all British travellers (Israel and Switzerland). Ski season is over before it's begun.
However, this is all just adding fuel to the fire for easyjet. Basic arithmetic and common sense has shown for many months now that the only way is down for the shareprice, even without the Omigod variant. In John Strickland's recent interview with easy's ceo Johan Lundgren (find it on youtube), about 8 mins into the chat Lundgren admits that easy has only been flying about half its capacity for this quarter - and he talks constantly about reducing 'cash burn' rather than producing profit. The rampers here saying that easy was recovering are way off the mark. The business seems to still be 'burning cash'. This latest covid development will mean more money draining away and it increases the likelihood of yet another rights issue next year.
Doubtless we will have some facts and figures on Tuesday.
Results will be published on Tuesday not Monday. However, I still doubt Monday will be 'muted'. On Friday, the UK was the only country adding significantly to its 'red-list'. This weekend the rest of the world has followed suit. Also, on Friday the UK hadn't instigated new testing/quarantining rules and in addition to these, we now have 'plan B' measures on transport mask-wearing etc. A lot has happened this weekend - I doubt Monday will be quiet on the markets.
Ossingh, the reason YOU think it's an over-reaction is because you have misunderstood the shareprice. Easyjet is NOWHERE NEAR ITS PANDEMIC LOW. There were HALF AS MANY SHARES the last time it was close to this price in March 2020. For it to be close to that low now in terms of the value of the company (market capitalisation), the shareprice would need to be about £2.35 and that is a distinct possibility over coming weeks imv.
As for a 'muted day on Monday' - I think you've forgotten that the full-year results will be published alongside an update on current trading.
Also, Friday's drop of 11% was nothing like an 'over-reaction' - now that the red-list has been re-instated and more countries have been added, plus additional testing and quarantining requirements, fewer people will be travelling. I'm not sure what you think is a 'no brainer' but unless you can get a grasp of the fundamentals regarding shareprice, earnings and upcoming events, you should perhaps avoid adding on easyjet for now.
We're seeing a dead cat bounce in this small rise off the 20% fall this morning. I think the fall will resume shortly and then accelerate on Monday's results. We're still a long way from capitulation here and I think below £4 is a real prospect at some point in December.
Obviously northscot is not a serious investor - he's not even out of bed yet!
In case it isn't obvious to everyone here, the easyjet shareprice will likely be having a tough time tomorrow. Something for northscot to dream about or have nightmares:
Austria has gone into lockdown. So has Slovakia this week. The Czech Republic has just announced a 'state of emergency' with new restrictions and a review in 10 days for a potential lockdown. The worsening situation in Spain is also having an impact. The Daily Express reports:
Spain holidays in the balance for British tourists as country debates closing hotels.
SPAIN is set to debate the early closure of hotels due to Covid fears as cases rise across Europe. If the plan goes ahead, it could impact British tourists' holidays.
https://www.express.co.uk/travel/articles/1525614/spain-holidays-british-tourists-hotel-closure
A few people on here are telling smithy to shut up. Northscot is the one who needs to stop posting - of the two of them, at least smithy is right! The people posting unrealistically optimistic rubbish on here are attempting to mislead private investors. A more honest conversation would involve actual facts instead of mindless insults and stupid comments like 'keep the faith' and 'up, up and away' and 'lol' and '700p by the end of the week'. Meanwhile the shareprice continues downward, now into the £5s with a trajectory which suggests it'll soon be in the £4s.
It should be OBVIOUS to everyone from the price action over the last few weeks that this share is heading down in a determined manner. Easyjet have announced new losses of over a billion and when the annual results are out in six weeks time, the full numbers will cause another drop in the sp. In the meantime, as I and others have predicted on here, the covid situation is getting worse going into winter. People taking comfort from the govt's announcement this evening should also remember how often govt has reversed its decisions.
Germany is seeing a similar spike in infections since its climate is closer to the UK's - as we go into winter, the colder weather will cause infections and deaths to increase in France and Spain. Many foreign governments will react and reimpose more restrictions. The action from Morocco today is an advance warning of things to come. Funny that northscot says that it doesn't matter because easyjet isn't making any money on that route. How does he know? And what other routes is easy not making money on? All of them? Most of them? The real relevance of the Morocco ban is that it means that other governments don't have to 'go first' in reimposing travel restrictions, and the UK's horrendous case count means that we are particularly vulnerable to 'red-listing' by other govts. If another country follows Morocco's example of banning UK travellers, the easyjet shareprice will take a massive dive. It could easily happen this month, but if it doesn't, just wait til we are at record-breaking case number in December.
On account of the massive number of posts on this thread, I may repost this message. GLA and DYOR.
Keep on lolling northscot - that's about all that you're good for. Your judgement on easyjet certainly isn't worth anything.
There won't be much of a rise this time. The downward trend is already well established.
Try yawning at the shareprice tomorrow northscot. It'll yawn back as it goes into a fast dive.
Don't worry northscot, smithy and I won't need to post the bad news here tomorrow - it's already out there. From here on, the shareprice chart will do the talking. Try lolling at that!! I think it will ignore you and carry on heading down in an ever-steepening red line.
northscot, I hope you're satisfied now that all of your ramping has clouded the judgement of innocent investors in easyjet and will be costing them a lot of money. Smithy and I have been saying for weeks that more lockdowns would happen as we went into winter, and you have merely spammed this thread with lols and other rubbish in an attempt to distract private investors from the real issues here.
Austria has gone into lockdown. So has Slovakia this week. The Czech Republic has just announced a 'state of emergency' with new restrictions and a review in 10 days for a potential lockdown. The worsening situation in Spain is also having an impact. The Daily Express reports:
Spain holidays in the balance for British tourists as country debates closing hotels.
SPAIN is set to debate the early closure of hotels due to Covid fears as cases rise across Europe. If the plan goes ahead, it could impact British tourists' holidays.
https://www.express.co.uk/travel/articles/1525614/spain-holidays-british-tourists-hotel-closure
Only an utter moron would be lolling about these latest flight cancellations and additions to the UK red list if they are invested in easyjet. The latest news is bad for the travel sector and will inevitably impact on easy's shareprice, just as the US re-opening was positive, even though easy doesn't fly there either.
However, I'm glad that you have finally understood the implication of the rights issues on the share price, and on that point, I agree - £3 is indeed a short-selling target and I think we will almost certainly drop below £4 very soon, either on the day of the results next week, or within a few weeks.
Don't forget that winter has not even started yet; we are still in autumn. easy will not make a profit this year, and is also unlikely to make a profit next year. What price do you put on a non-profitable airline with two years to go before it makes any money?
It's funny that you should say that Malpasso, because the World Health Organisation sees it somewhat differently for Europe, and that's where easyjet mostly flies to. Your prediction for 'normality' is a little premature, if you are suggesting that people stop selling easyjet.
Covid deaths in Europe to top 2 million by March, says WHO
Dr Hans Kluge describes situation as ‘very serious’ with increasing strain on health services.
Total deaths across Europe from Covid-19 are likely to exceed 2 million by March next year, the World Health Organization (WHO) has said, adding that the pandemic had become the number one cause of death in the region.
Reported deaths have risen to nearly 4,200 a day, double the number being recorded in September, the agency said, while cumulative reported deaths in the region, which includes the UK, have already surpassed 1.5 million.
https://www.theguardian.com/world/2021/nov/23/covid-deaths-in-europe-to-top-2-million-by-march-says-who
scotty, when you say '5.40 is the bottom' what are you basing that on? If you want to invest successfully, you really need to do some kind of analysis and have a rational reason for making a judgement. Imv, 540p is nowhere near the bottom because the shareprice isn't even in distressed territory; it's a mere 26% below the peak market cap in Jan 2020. Considering how much easy's business situation has changed, that 26% fall is nothing. Easy's debt will be at least £2bn including its committed lease obligations. Then there will be trade creditors and pension deficits to tackle ontop. The indebtedness of this company is going up drastically, probably losing millions every week flying planes to maintain its landing slots, keep its workforce employed and trying to give the impression of a network that's open for travellers. For the near-term and medium-term, easy is in trouble. When the situation finally stabilises in early summer next year, easy will need another rights issue.