Member Info for shamI89

Yes and what happened to share price from 8 June to 31 July?

Ted carried out rights issue at 75 and share price dropped to 63, I did expect it to stay above 10/20% of 75, so did stob which issued shares at 35/40 and share is trading around 25 now.It depends on company as well as well market sentiment. That is why I said that there is no point in arguing over share price until full picture emerges. A good explaination would be that those who have invested in the company at higher prices and are sitting on heavy losses are bullish about share price, while those of us who are not invested and want to get in are bearish about it.right now company has 8.2 billion liquidity and if cash burn is around 200 millions per week then that 8.2 billions should last it 41 weeks.So why is company going ahead with 2.5 billion fund raise, when it is expecting to start breaking even in two months which should reduce cash burn significantly?

That there is point in arguing over price until rights issue and conditions sttached to it becomes clear. Right now we have all sorts of price predictions, from my previous experience share price would correct itself according to rights issue.If rights issue is carried out at 1.25 share price would get there. Problem is BOD has killed any meaningful rise until start of next month as nobody would want to buy a share which could see them losing 10/20/30 % of their investment overnight.Rights would create an overhang for sometime as well as people would want to get their money back moment they see any profit. As far as vaccine is concerned , we thought that there would be a vaccine in May and then in June .It is August and it is nowhere to be seen.It can come out tomorrow or next year, we dont know. I do think that company is not expecting any significant gobal flight activity until next year and current break even guidance has been given on the best case scenario.If second Wave comes then it would strain company's finances further.

If somebody wants to buy, he/she would for rights issue.Right now there is limited upside , post rights issue it would be a company with a strong balance sheet and in much better position.

I would buy this after rights issue if want to invest in it , post rights issue it would a company with strong balance sheet and I wont be sitting on shares which can be diluted at anytime.

10 years! you must be having a laugh, short-term trading mentality has taken over the whole market and who knows which company would be trading after 10 years.6 months ago Rolls Royce was safest share to invest in and six months later it has lost nearly 60% and may even fall further.

Yes, hard to predict a bottom, it can go down to 110 or rise upto 210, who knows.

Any Rights issue would have to be at discount at previous price as for arguments sake lets say share price is 170 and they carry out rights issue at 135 for 1:1 basis representing 20% discount.In almost all of these cases there has to be a discount as why would somebody take up rights when it is cheaper to buy shares in open market.

We might see a few 5 or 10% rise or fall here and there but no major moment until September and we will go from there.A few airlines carried out Rights issue when market was recovering and are in better position now .May be IAG left it until it was too late and it has lost 50% since june and we have a rights issue looming over us .Too be honest I thought if they did announce RI in this update it would be at 160 level.

Arguing over share price when we dont even know conditions attached with RI is pointless, I only blame bod as they should have specified a price to put a floor under share price.Right now we are getting all sorts of predictions.Just a week ago they announced that no decsion has been made and a week later they annouce that they are trying to raise 2.5 billions via RI exact figure given by various media sources.BOD was trying to mislead us as these talks were going on for months and media sources were predicting a rights issue in June.

Pure speculation but company would have to deny or cofirm the rumor first and then have to clearly state the price and conditions attached to rights issue.share price would act accordingly.

Having said that it is not a pure momentum /corona play any more, a good example to look at would be internation airlines and in a way RR and IAG showed similar trends.Share price kept on falling and there were rumors of rights issue, just a week before quarterly results company announced that it is considering a rights issue but has not decided yet but it only admitted because now media sourcres came up with exact figure.I decided to believe Bod and thought BOD is not going ahead with rights issue yet.A week later BOD admitted that it is looking to raise 2.5 billions via rights issue and needs shareholder's approval.Which leads me to believe that Bod was pursuing rights issue but tried to mislead investors by saying that it had not decided. Iag is trading at 164.70 today and share price is falling as market has a view that any rights issue would be below market price in september as it has to be attractive to shareholders but it can be voted through.

Company is trying to raise £1.5 billions by offering shares to share holders at a discount and is in talks with four banks. We dont know the price yet and it would be announced in September.

Company needs to deny or confirm this to put any speculation to bed.Problem is Reuters is not an ordinary news agency and has confirmed it with four sources.If company is going ahead with Rights issue then it would be pointless to invest in it until we know full terms and conditions.

have appeared in media and Reuters have reported that company is trying to raise 1.5 billions through rights issue.Look at Iag which denied Rights issue and said it is considering it but has not decided yet and then a week later confirmed that it is looking to raise 2.5 billions through rights issue and needs shareholder's approval before going ahead with it.

a price as that would have put a floor under share price.Right now fear is driving share price down and it has lost nearly 20% since their last announcement ,wording of which was opaque.Rights issue talk got a mention in media in early June and that was followed by a massive sell off.Share price at that time was 350 and has lost 60% since then .

200 million a week and company is expecting to break even in Quarter 4, so another 1 billion cash burn if start breaking even in September or 2 billions if they start breaking even in October .However looks like a company is going ahead with rights issue to stay on the safe side.Corona vaccine could be a game changer and if there is a second wave.Company should have announced price today.

As I thought they would clarify things regarding Rights issue if they were going ahead with it and at what price, they have made things even more complicated.

I agree a good example to look at would be pharos energy, tons of potential and sitting on a very large cash plus debt free, other oilies have risen 400% off their lows and pharos is sitting there .Sometimes regardless of how good a company is market dictates the price and share price can be influenced by a seller .

I have been watching this for sometimes and on any interim resilts there is a chance to make quick 10% but lets see how it goes. I am really confident of that but got in around 11.84 so that aint a bad average.