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@PhoenixRising53
That was my reasoning, but after nearly 5 years of reinvesting all the divis, I'm still well down. Let's see what the next five years bring - hopefully a PE offer. Failing that, I might just be up after 10 years, but at this rate, I would probably have earned more by putting my Wimps investment in the Post Office.
There we go. It took just two weeks for the dog share of the Footsie to get back to sub-120. I wish all my holdings were so predictable.
Atome continues to sugar the President energy pill.
I love how the SP can climb 10%, but the bid price steadfastly remains at 98p.
I should clarify that the people to who I am referring have mostly flown long-haul this summer - and hated it (myself included). IAG’s balance sheet is dire. Its debt-to-equity ratio is a remarkable 2,000% - and its short-term assets can’t cover its short-term liabilities. Its Q2 profit was not enough to cover Q1 losses. With all the recent cancellations Q3 results probably won't be all that bright. Further dilution certainly isn't off the cards.
Most people I talk to have gone right off the idea of long-haul air travel, for at least a couple of years. Just as the big airports start to get their act together, the airlines may face a dearth of passengers, from the combined effects of recession and travel aversion. I think IAG will avoid collapse, but it may well face further dilution in the next 12 months. I think we'll see 90p before we see 150p.
Nice to see a firm rebuttal from Glaxo. As I said before, the sp(s) will probably return to recent norms within a couple of weeks.
I think steven49 has 3 or 4 stock posts that he simply copies and re-pastes here. If I had a pound for every time he posts "seller still selling", I'd be rich. Alas, I probably won't get rich holding President either, but the Argentina results are not bad at all.
No surprise that the sp has rallied on the Russian sale news, given that the disposal price of £1.5B represents around 20% of the market cap for the entire company.
I was really tempted to buy into SMT, but I wouldn't touch the grossly overvalued Tesla (SMT's largest holding) with a bargepole. Instead, I bought PayPal and Amazon, both of which have shot up in value over the last couple of weeks.
Haleon has no connection with or liabilities regarding Zantac. As I said, random drop.
Given that even the market reports have not mentioned or explained the fall in Glaxo/Haleon, the reason would appear to be random. Best just wait it out for a couple of weeks - and they will return to recent levels in due course.
I've held LGEN for a while now and love this share for the divi. Its laggardly sp does make you wonder, though, if the market cap will ever take off anywhere near those circa 400p projections.
Not that long ago, Breedon was, for nearly a year, the top gainer in my portfolio. These days, it's just another footnote, albeit I'm still 7% up. Doubtless the market cap will recover, once construction activity returns to normal. Meanwhile, we can probably look forward to its languishing in the usual 60-70p range for the next couple of years. The only silver lining is the divi.
I've held Wimps for 4 years and even after reinvesting all the 'generous' divis, I'm still well down. This isn't quite my top dog share, but it's up there with my worst FTSE 100 buys of all time. Wimps could strike gold and the market cap still wouldn't budge. After the initial euphoria, expect it to return to sub-120.
And before anyone asks, I'm talking it down because talking it up has never done any good.
I bought HSBA and Lloyds during Covid (summer 2020), on the basis that they would eventually be paying a decent divi again and consequently the market cap would rise. I couldn't understand why everyone else wasn't doing the same. Was I missing something? Apparently not.
With inflation and continuing airport disruption (not to mention the other risks associated with this industry) it is hard to see IAG getting itself out of the rut anytime soon. I can see it visiting penny share territory for a while (it happened to Rolls Royce) and possibly requiring another cash raise in the next 12 months. On the upside, it will probably recover - and be paying something approaching its old divi, in about ten years' time.
Similar disruption is happening at airports around the world. I was at YYZ in Canada last week and it was bad there. I and several people I know have been put off flying for years by recent travel experiences. Flying was always a bit of a nause, but it just feels like too much hassle these days. The good news is that the airports and airlines will probably have returned to near normal operating conditions by next summer (assuming terrorism, strikes and the other perils of the industry don't intervene). The bad news is, many people will have lost the desire or won't have the spare funds to travel abroad in the next couple of years. There are unlikely to be many bargains out there. How many airlines, including IAG, can afford to stay on life support for another two years?
I have had a 90p buy limit on IAG since the outbreak of the war in Ukraine. I think it will probably hit that level some time in the next couple of months - and might even head lower (e.g. as Rolls Royce did).
Given the current state of the industry and the economy, it is easy to see the company accruing even more debt before it makes a meaningful recovery. I can't see it paying dividends again in the next 5 years - and it probably won't be yielding 5% for another decade or so. This should now be considered a risky buy and priced accordingly.
US PE will probably bide their time, until the sp has reached a 6 month average of 225p (at this rate, in about 6 months time), then offer a premium of 35% - and tell us how generous their buyout offer is, at just over 300p. Trouble is, by then, most of us will probably believe them.
If this keeps rumbling along in the 200-250p range for the next few months (as seems likely) , I can see a PE takeover bid coming. PE appear to have a nose for undervalued companies, whereas the City seem happy to leave them hanging out to dry.