RE: Reality1 Jul 2025 11:33
If we look at the trading volume generated in the 1050-1150 range and that from the period of the sharp price collapse from around 1700, we will come to certain conclusions. *First, the increase in the share price must be associated with the return to the WIZZAIR share market of capital in the range of £50-100 million (or at least a significant part of it) that has escaped from its shares over the last few months. This will not happen without a significant improvement in the revenue structure, a decrease in costs or a situation beyond the company's control, such as calming down the political situation or solving the problem of faulty engines. So we are talking here about a period of probably at least 12 months. *The second option is a drop in the share price, making its valuation more realistic to market forecasts. And here we are talking about a correction of at least 20-30%, assuming positive changes in the company. In my opinion, as time goes on, the market will increasingly value the increasing costs of servicing the purchase of new aircraft and their impact on the level of profit. This will cause discussions about a new share issue or a loan with an option to convert to shares at an appropriate discount to the market price. The coming period is a time of burning capital. So, in a negative market scenario, the price level of £8 (at which we should have a chance for a multi-month consolidation) may turn out to be too optimistic.
As for me. If someone is going to discuss, I suggest using factual arguments and not stupid rhetoric. So far, all I hear are pleas for a share price increase based on the fact that it's cheap (and it shouldn't be cheaper) or that it should be better (because it should be!!).I heard similar opinions from the same people at the 1300 level, and everyone who listened to them is seeing over 15% losses today.