Member Info for Popeye62

At the moment a lot of people are scared and terrified of what the future holds. I wouldn't want to be invested in the airlines, travel or hospitality sector at the moment. My own personal belief and opinion is, that once the lockdown is over, people will be very wary and apprehensive in reemerging. Peoples will derive their small pkeasures from a drive to the seaside or countryside for a picnic. I don't believe they will be piling into pubs and restaurants and cramming themselves on aircrafts. That is why I am happy to park a lump of money in the AA for the time being. I see it as a safer option with great potential. This is all IMHO DYOR. Atb.Popeye

Tony2117 - It's very good of you to highlight the debt, that we are all aware of. But when the company is proactively reducing that debt pile, and reducing the associated interest payments. I will remain invested. AA has generated £100m profits after servicing the debt. They remain comfortably within their lending covenants. It's interesting to note that when the debt was £600m greater the SP was at 400p!!! The bottom line is, the company is improving profitability whilst reducing debt at the same time. You're entitled to your opinion. I take it that you're not invested, or contemplating investing??? Atb.

AA is in a totally unique position. As they receive the majority of their £1bn revenue via upfront payments. That is why their cashflow and cash generation is the envy of many other companies. How many companies do you know, or can name that receive their income in advance??? As most of the revenue at the AA is derived from memberships and insurance policies, this income is paid in advance. The demographics and customer base of the AA mainly consists of the older generation in personal memberships. These members are extremely loyal, and view the AA as the Rolls Royce's of the breakdown sector. All the other recovery companies don't even come close to the AA. Good luck to all investors whether you are here for a short or a long ride!!! Atb. Popeye.

BoBetts - Good post and good analogy. You make some good points. With regards to the pension a lot of companies are moving away from the final salary scheme, and AA aren't doing anything different in that respect. No doubt employees aren't welcoming the changes, but it's the unions that have been fanning the flames. A lot of the negative press and comments relating to the AA debt are more concerned that when that debt is up for renewal, the bonds will carry a higher rate of interest than is currently being charged. AA actively manage their debt, and my understanding is that, they already negotiatng renewal of bonds well in advance. A few years ago AA was hammered down to 72p, (that would be nice now!) all on the pretext that their bond rating was going to be reduced. When the rating remained unchanged the SP doubled and went into the 140's. The AA has been subject to constant shorting, and they've never really let go. I will start to top slice at 40p, as I'm sure a lot of others will as well. I'm sure £1 will come in time, but the problem is. How long do we wait? Are there better opportunities out there to deploy our capital. At 40-50p it will be a nice problem to have. Until then I will sit tight. Good luck. Atb. Popeye.

SW - I agree, and I also think it's a genuine gesture. There's been a lot of celebrities that have tried to jump bandwagon for their own gains and using the NHS just to get themselves some coverage. Nobody is interested in them at the moment. Clapping for the NHS is recognition, but it doesn't really do anything for NHS workers. That's my opinion.

Good Lol!

I've never known a fund wanting to exit their short position at such a rapid rate??? I'm sure it's happened before, but it's very rare. Ennismore has gone from 2.42% to 0.78% in a matter of days. The other funds that are currently short on AA must be thinking? What do Ennismore know that we don't??? Rest assured if Ennismore thought for one minute that their was more mileage in taking AA lower, they would still be in. Have Ennismore being hedging for a client that has been accumulating and building a stake???

SW - There's 1.4m NHS staff in the UK, so it's quite a big undertaking to commit to. The AA posted it on their website together with a dedicated phone number for NHS staff to call. I think the gesture will stand them in very good stead.

I agree Ammu. They've given all NHS workers free breakdown cover between their home and their place of work. There is dedicated number for NHS workers to call, and all they need to do is show their NHS I.D to the patrolman. I thought it was a nice touch, and excellent PR. It shows the 4th emergency service really cares. Well done AA.

Volume is extremely thin today. Today is the lowest for some time now. Just a little patience is required.

I definitely won't be selling. I'm looking to add and accumulate more shares. Good luck :)

BoBetts - Excellent post. With regards to directors buying shares at the moment. I'm not sure if it would be classed as a closed period at the moment??? And they're not permitted to buy, but it would certainly good to see some directors buying. Atb.

Jack - What a generous employee scheme. It just goes to show what a good employer the AA are. I've been holding AA for some years now, unfortunately at a higher price than the current SP!!! I've traded them regularly churning my holding to reduce my average. I have also recently added significantly from 15p to the current level and will continue to add at these low prices. I liked your analysis that these are an absolute steal at the moment!!! I agree whole heartedly. It's good to have you on the BB and thank you for posting, at least we're getting a true account right from the horses mouth. Good luck, stay safe. Atb. Popeye.

Jackmully - Good for you buying 127,000 shares with your hard earnt cash. Do you also contribute to the employees scheme? Thank you for your insight as an AA patrolman. It is much appreciated. Good luck with your shares. Atb. Popeye.

Mariog - I did see that, but normally the final accounts are released at the beginning of May. I wondered if they can still be released, or if the FCA were still advising to hold back? Mariog are you from the valleys? Atb.

Normally by the beginning of May the annual accounts are released. But I'm not sure when they will be released, because of FCA guidance. I was looking forward to dissecting and digesting the accounts. One thing for sure, they will show a massive improvement from the previous year. Upon release of the accounts it will bring AA to a wider audience of potential investors, and will certainly give the SP a boost.

It's not where it starts, it's where it finishes. Games will be played to allow shorts to exit.

I was quite heavily, but I I sold last Thursday before any OPEC announcement. I have a lot of friends that have pretty hefty holdings. I will be looking to pick up some today though. The appointment of the CEO is great news, and I think Rahul is a great fit. Good luck. Atb. Popeye.

Good morning oiluser. I hope you are well. Good luck today.

Yed