Strong intraday reversal in the shareprice here today. A bullish sign. BT is up 10-15% since the Openreach story emerged, so the market is buying into it. Far too many people looking at the past here for BT. Need to look forward, to the future. The narrative has changed. An energized CEO, pouring millions of his own money into the stock, getting ready for a £20 billion selloff -- 2 times higher than the current marcap. BT is a no-brainer.
RE: Good news or bad news coming?22 May 2020 13:49
It is just relentless bad news here. Giant debt, huge dilution on the horizon, DBX production less than expected, plunging car prices, massive inventory buildup, big HK-China market in turmoil, soaring costs of the F1 vanity project, AML shares down -5% every day, regular as clockwork, in a Dow bull market, shorters increasing, and major funds dumping stock every other day. More red flags than a Vettel F1 crash.
The FT story only needs a partial whiff of truth to set BT shares alight and reverse the bear trend. Someone has leaked the (neatly rounded) £20b number to test the waters. It is not an indepth probe or forensic investigation. The FT article is basically an advert. Bankers gauging reaction. The CEO's public reaction is (very) carefully worded, lol. Openreach is up for sale.
Good luck, but the shareprice will almost certainly never again hit 48p here. The company is nearly bust, it needs another billion quid to keep the lights on, sales are plunging, showrooms are shut, Vantage is a flop, DBX production is delayed, their own rights-issue valued the brand at just 30p, another mega upcoming dilution will halve that to ~15p, factor in the crippling debt and negative cashflow for years to come, and this will end up well below 10p. The best-case scenario here is likely to be a plunge to its current fair value of 1p, followed by a 5p opportunistic takeover from Mercedes. Feels very similar here to how things played out at SXX.
Love the delusion on this forum. Reminds of SXX, as it collapsed from 40p to 2p. Everyone egging each other on that it was going up!
What part of "AML shareprice has collapsed an astonishing -98% since IPO in 19 months and one of the greatest destructions of shareholder wealth in worldwide stockmarket history" do you people not understand...
What part of "on the brink of bankruptcy just a few weeks ago and needs another giant placing very soon" do you people not understand...
As for DTG. Sold down from 460p for 440p, for +4%. EZJ sold down from 495p to 485p, for +2% ;-)
Yup, the new Vantage has been a disaster. Looks like a clown's shoe, Aston struggle to sell them (even with a giant -40% discount), while inventory has been piling up like a snowdrift against a barn door.