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Of course it won't be the last variant and eventually airlines will have to adapt. Whether easyJet can hang in and be around to see that day is another matter as this crisis isn't going anywhere soon. It's going to be a long time before air travel picks up to anywhere near what was considered normal a few years ago.
So you think the word of the chairwoman of the South African Medical Association who thinks it's a storm in a teacup, now remember she has a vested interest in this, is going to make all countries with a travel ban think "hang on we've been a bit hasty" and resume normal flights?
The airline industry is incredibly competitive. Unfortunately, easyJet’s costs are relatively high. This means it may struggle to offer low-cost deals on a par with peers and remain profitable. Then there are fuel costs to consider. Rising oil prices have pushed fuel costs to multi-year highs across the board. This is only going to make life harder for the group.
As such, considering these challenges, I would not buy the stock for my portfolio. easyJet’s trading update suggests that the company’s outlook is improving, and some investors may feel comfortable owning the investment as a recovery play.
Nevertheless, the organisation’s weak balance sheet, cost pressures, and the airline industry’s uncertain outlook concern me. Unless the corporation can overcome these pressures, I think the stock could continue to fall.
https://www.fool.co.uk/2021/11/01/why-the-easyjet-share-price-slumped-11-in-october/
That 37M won't be from an individual investor and £37M is peanuts to a fund. Having large amounts at your disposal doesn't always equate to 'smart money'. For every buyer there's a seller and very hard to see any positives about the airline industry right now for anyone other than an optimistic long term investor.
I find it hard to see why people recommend this as a buy with prices close to 2019 levels, when you start to take into account the various rights issues. Even with travel restrictions being lifted it's still going to take ages to get back to 2019 levels of traffic and everyone is trying to grab the few passengers available at the moment just to keep afloat. UK international travel is still low at around 32 per cent of 2019 levels, just seems people are being far too bullish over any little positive info that comes out as they're worried about missing the boat.
I'd agree , not sure why anyone would feel the need to ramp up a shareprice, or deramp for that matter, on these boards as the investors on them aren't going to make any difference to the price with the size of holdings they'll buy.
I'd have thought most of the people buying into the RI only did so so as to not miss out on the discount, doubt too many wanted to increase their holdings otherwise, so it'd make sense they'd now want to sell to lock in any profit and release their funds back. Restrictions have eased but now's not really peak flying season so wouldn't expect any massive increase in customers.
I make my living trading on sports price movements so share trading isn't my forte just looking to branch out. I did consider going in at around the 606 mark but missed that boat on Friday mainly cos I wasn't sure of the rights issue mechanics. For me I can't see any massive upshot now and more of a 50/50 if it'll bounce back.
Can someone explain why the rights issue hasn't decreased the SP as I assume these are newly issued shares , rather than issued shares the company already hold, thus should be diluting the price of the shares in circulation. Or is it simply the company now has X amount of cash extra on the companies books. New at share trading so only asking out of ignorance