Member Info for Rachel2

Interesting, just put all your available cash in. Leave the house out of it, the rest of the family need somewhere to live. BTW, the dividend will be pulled.

The company does have a net debt position which of course was very low given FCF. BUT, all cards are now off the table and this share is very high risk. EVR fortunes are highly geared to world events, revenues could easily fall a very significant amount in 2022.

It’s a pure gamble right now.

How will he get the dividend? I thought he was on the sanction list, in which case no bank will transfer the cash.

I don’t post often, in process of rebalancing portfolio. Would not be surprised if a significant market correction happens. When it happens, it’s not nice but I don’t tend to sell and leave because I am a useless trader. So to answer, just researching a few stocks and reviewed only very recent posts.

Found his comments relating ITV to retail interesting. That’s all - bye

My view - growth will be slow but consistent. ITV have a long way to go, however they do own significant IP which should underpin the share price. I am trying to decide if the dividend is sustainable or will the board decide to try and turbo growth and require the cash for the growth plans. If I invest it is solely for the reason of a diversified income portfolio which is currently media light.

Toms comments have been interesting.

Do you mean Market Cap to Sales? Please share your FCF calculations as this is the area that I am most concerned about. Thanks R

Watching this closely. This contract is small value which is why no RNS was made. Got burnt with other companies with similar new board reviews, chasing falling knives etc. Deciding to wait until down trend ends, not bothered to try and catch the bottom as I always fail.

I agree with doni, a takeover bid from any source is likely to be difficult. The UK needs a competitive local market.

How can we value this company at present, when even the board can’t say what the numbers will be next year. IMO, the news flow tends to get worse before it gets better when accounting problems surface.

The board may have no idea about the current profitability of this company, they have chosen not to give a range for op.profit this year. This is a very bad sign for what was once a ftse100 company. New CFO will want to declare all of the aggressive accounting that went on before. The very poor cash generation was a real red flag. Seen this all before, bet the board don’t pay back bonus payments made on profits generated by the finance department. A large number of institutional investors will want to pair back their holdings over the coming days and weeks.

I have lost a lot on this share. Did not do my homework. The company is a low growth/ margin/ cash generating company with long term contracts. Has debt circa £1.4bn and with current SP an enterprise value circa £2.8bn. Adjusted op. Profit going forward prob. Somewhere circa £450m generating cash available for debt reduction of circa £100m. May get a rerating later this year, but can’t see the £10 SP days for many many years.

Have been watching this stock for a little while. My concern has been the historical poor cash generation compared to operating profit. Always a ??. However, getting close to a price where one could argue takes the above concern into account.

Too brave a move for me. Have sold my holding this morning. Bought for dividends a few years ago. Not my best move but who saw C19 heading our way. GLA.

Theosus - I agree with all you have said.

Dividend income means a lot to me, so I don't say it with glee. However, most of us are showing huge losses and I don't want to risk a complete loss with government rescues. Thats why I say stop the dividend. Banks are very complex and really under BOE & Gov. control in situations like today.

'A number of companies have pulled dividends. Does anyone feel Barclay's will?'

They should pull the div (and I own too many in my SIPP), this is a matter of survival. This is worse than 2009 and the banks will have to be rescued if they get into trouble with disastrous consequences for current holders.

I really fear that the government will be unable to prevent nationalisations. Very very uncomfortable with the economic consequences of trying to slow down the infections. I understand the social and compassionate argument but what will the economic landscape look like once we are though?

'Excellent news that the Govt going to inject alot of cash into this and take a stake.'

Really disagree. The dilution could be very significant - think banks 2009.

I get the increased Hygiene and no sandwiches bit, but really - no questions or presentation. Unacceptable and very unprofessional. Shame on you.

Rioforever

The banks are also at significant risk of governments being forced to take equity stakes with very dire consequences for existing holders. My guess for what its worth, Barc will fall further until positive Covid19 news so I expect at least another 2 months.

'a very serious situation indeed. Much worse than, say, the big airlines.'

Could not agree more. No management board could have coped with this. The best situation is that the world returns to normal fairly quickly and Carnival just has a larger debt load. The alternative, that the government 'has to' wipe out existing shareholders and protect the industry.

I am afraid they will have to suspend dividends to conserve cash. The board will be in survival mode I suspect, and they will. A great company with a black swan event - it happens rarely thank god. No idea where share price will end up.

Prepared to wait this out and collect dividends. Provided Divs are not cut. Accept Chief Med. Officers view that CV-19 mortality rate is below 1%. Watching IAG but feel that the price will move lower still over the next few months.