Stronger buy rating28 Jan 2019 16:01
One must bare in mind that the intrinsic stock valuation sits closes to 8.8p, and with a current SP of 4.10 it is no bummer that many are anticipating a positive outcome here. The drop in the share price has no doubt been caused by the scaremongering from the news driving the stock down to its current SP from a healthy 17p. However, as like many shares, once the scared investors sell up and go, those big investors such as the ones we have saw today will drive the share price back up. Have a look at the volumes in the trades, if the million unit buys are not reassuring enough then see HL buy rating for further confidence. Either way this is a win win situation... As FORBES have published "If the bid somehow gets blocked we could see higher bid offers come in and the share price return to the prior price range of 10-16p. Secondly, if the bid goes through we have a diverse group of large companies backing Flybe and we should see natural business growth with a healthier debt level achieved and ease of cash flow, and a knock on in share price increasing as the business performs better over the long term. Either scenario looks healthy for Flybe and overall an exciting stock to keep an eye on".... so truely it is a win win and regardless of the outcomes the share price will recover. FLYB is not your small company on the aim but one that has strong market capitalization and one with much backing from large investors. Slow growth over the coming weeks will see this share touching the 8.8p true valuations. hold for gold.