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This latest drama is totally self inflicted and really poor decision making - especially given that no one was expecting a dividend in the first place- then they go throwing chicken at crocodiles and now reversing again.
Yeah why have clarity and honesty when the alternative option available is to B/S people. Isn't the stress of the war enough without this sort of ham fisted rubbish?
Last time I recall anyone doing this was BP in 2010 after the Macondo spill - the stock had gone XD and BP cancelled to retain cash.
This sort of thing really should only happen in disaster scenarios and this obviously leaves a bad taste.
Some more clarity on the lurches from one legal crisis to another would be helpful.
HSBC were offered SVB UK, it was served up on a plate - Barclays were not, so not the board's fault
It all adds up to a really poor outcome for something that started with so much promise- America does tech. London does not do tech- full stop
I suppose the reasoning behind this, the bear point is if the Verne sale is blocked then that is problematic.
A bit surprised (pleasantly) at this turn of events. Cash cost of $19.3m is material to existing cash balances ($109m).
Again somewhat out of the blue given most recent co statement and interim net profit of US$27m. Reality is possibly less altruistic, Zhevago possibly needs the cash.
I hope we are not going back to the days of weak corporate governance at this co
Drop is obviously alarming, does anyone have any pointer on this?
Assuming the forecast production drops means EPS stagnation over FY24 and possibly FY25 then AAL is still on 11.3x.
share price drop is significant and knee jerk response but fact is are we are looking at dead money?
The slow leaks on the strategic review including £1bn savings/ scale back of settlements/ clearer picture on s/h returns has yet to win any real backers - it seems if this is it then not enough and not a catalyst.
Qatari sale looks odd timing wise but also a decision that is born out of boredom with a dead money situation and a reality check that a recovery in its share price is a way off yet.
BARC strategic review looks very underwhelming and tinkering only, the co should bring forward its plan possibly by mid January
New RSV treatment might not be a blockbuster- initial sales represent an inventory build - not saying this is the reason for the drop which is weird, agreed
Yeah but Easyjet is flagging a spend of US$19.5bn - co has cash of £40m
Furthermore Jet2's approach is more intelligent, i.e. get more margin out of existing customers as opposed to simply adding capacity and sheeping along with a strategy employed by larger carriers with much larger balance sheets.
You guys should look more closely at Jet2 which is a far better business with an approach that is credible and achievable that does not involve either vast equity dilution or significant gearing.
You are defending the indefensible. What EZJ CEO has done is straight out of the Liz Truss crass stupidity playbook - vast spending plans but no details on funding. This is a colossal amount of money that will leave EZJ very highly geared. The co could raise maybe £1bn via equity, max- which in the context of US$19.5bn is PEANUTS. That plans means very substantial debt - the co is saying it can only afford a 4.4p dividend - £33m. So EZJ does not want to reward s/h - its CEO wants to go for empire building funded by debt at a time of high global interest rates.
Furthermore EZJ is only £40m net cash and talking about $19bn of purchase commitment- What is the CEO thinking? I would say the fall in the share represents a number of things i) a shareholder revolt/ exodus as a result of this plan ii) a new problem with the majority s/h iii) a badly considered out of the blue announcement that lacked any sort of professional funding detail iv) loss of boardroom credibility v) higher tensions/ higher crude oil. Always tempting to jump to the conclusion that the market is wrong -- in my view it is rational.
You have not answered my point though ........my point is how do s/h benefit in this scenario? i.e. where the co is very heavily geared for years as a result of high capex?
EZJ is running hard to bulk up but the reality is its market position is way behind Ryanair, IAG, etc
After a tough 3 year period and no dividends in 3 years, mortgaging the planes and cranking up debt over the C-19 period - co has a sweet trading spot - but wants to spend on more planes and not reward s/h - so in bad years co is mortgaged, and s/h are tapped, in good years the free cash flow is deployed on more planes. So how do s/h benefit from this co?
Second point CEO has gone down the route of annoying Stelios with the new planes ploy yet again, re-opening old wounds. Market possibly sees Haji-Iannou stake as an overhang. No detail on funding of new planes or the commercial logic for it- Why does'nt dumb Easyjet CEO simply buy Jet2?