Member Info for Pianista

Who exactly is saying this?

I agree. Not sure where the optimism is coming from - on a day when several restaurant chains are warning about administration.

You would think that Wetherspoons would be one of the worst affected by the pandemic. However, the market seems to have an unshakeable belief in the company's ability to pull a rabbit out of the hat.

But to me, at knocking on £10 a share, it's more than fully valued, to put it mildly.

It's just the 2020 Annual Report and Accounts.

Given the importance of SB to the AA, we can expect an update on take-up at its AGM on 19/6/20.

Could also be a big day for TRAK!

Well said.

For those who need it spelling out, the AA is a decent company, one of the few companies that should not be too badly affected by the recession. The debt is high, but is not of immediate concern. Tempus in the Times agrees that “it should trade through this and bring debts down”.

The fact that a big shareholder feels the need to rebalance its portfolio does not change this assessment one jot.

A big seller is bound to depress the price, but only temporarily, so for those who believe in the AA, it’s not a problem, it’s an opportunity (and one that’s being taken up by other institutions by the way).

Existing holders will just need to keep their nerve, and wait for the selling to end. It’s not a death spiral. It’s not saying anything about the fundamental value of the company. If everyone was getting out, that would be different.

It is Parvus who have the most to worry about: they are having to bear humungous losses by selling at this time.

Ok, BoBetts, cheers.

BoBetts - how do you know the seller hasn't cleared yet?

Question is, have Parvus finished unloading?

You mean the RNS that said, reassuringly:

'we currently expect our performance this year to be robust in the circumstances and only slightly below that of FY20', and

'all financial covenants have been comfortably met'?

And since the issue of which the government has encouraged the use of cars over public transport?

Yesterday's blood bath was an aberration. It happens.

I see Macfarlane have just issued a similar trading update, including:

'...we expect demand levels in the second quarter to reduce to between 75% and 80% of those seen in the second quarter of 2019. We are managing our cost base in line with the reduced levels of activity and we would expect the second quarter to be a profitable period of trading albeit well below that achieved in the first quarter'.

Coral have not been quite so bullish, but taking into account that:
- they are 'encouraged by the Group's resilient performance to date',
- staff members and the board have reduced salaries by 20% for April 2020 and May 2020, and
- they have a CBIL with 12 months interest free
I think there's every chance that they will similarly be able to avoid a loss in the first quarter of FY 20/21, and the year as a whole.

Bit of a curate's egg.

At least they sound quite positive, even though they are assuming demand will drop to 65% of pre-Covid levels. This sounds unduly conservative: demand in April dropped to 70%, but with lockdown now being eased, that month should turn out to be the low point.

I am hopeful therefore of a much more modest year-on-year reduction in turnover. However, we do live in uncertain times....

Thanks, Nosugar. We can take some comfort from the insurance side of the business, then.

So revenue for Trak is 245k x £30 per annum? That's massive.

So we just have to continue living in hope....

Why should the company comment on the main shareholder reducing? After all, it still holds nearly 22%.

'....By Miles, one of the UK’s fastest growing car insurance providers and an outspoken proponent of flexibility for policy holders. The service that By Miles provides, enabled by Trakm8’s unique technology solutions.....'

So on the face of it, an exciting prospect. But what sort of numbers are we talking here, so far? And what is the revenue per annum per connection for Trak?

From the recent RNS: 'we currently expect our performance this year to be robust in the circumstances and only slightly below that of FY20'. How many companies can say that at the moment?

And that was BEFORE the relaxation of lockdown this week, and the official encouragement to use cars instead of public transport.

However, in this febrile market, memories are very short.

As for debt, there is no immediate problem, the first crunch date is 2022, and the company is well within its financial covenants. It's on track to get it down to the optimum level of perhaps half its current level over the next 5 years.

Parvus are currently reducing, but still hold more than 20%. They have done PIs a favour this week by giving them, possibly, the last opportunity to top up at bargain basement prices.

JAdam - 'with less money in your pocket, you aren't going to buy insurance - but you ARE going to buy a new car'. Really??

Some light at the end of the tunnel for cruises then.

AA: 'Over 4,500 new and existing members currently have Smart Breakdown and feedback to date has been very positive'.