The latest Investing Matters Podcast episode featuring financial educator and author Jared Dillian has been released. Listen here.
Don’t want to turn this into Tesco board but watch out for the price drop Robby once it goes ex dividend. That will eat into the 50p per share.
Have a great Christmas everyone, whatever Tier you are in, or whatever part of the world you are in!
I especially wish a good Christmas to long term IAG holders who have been through a tough time and hopefully come out of it in a better position than they might have expected at one point.
Genuine question.
What is the rationale for IAG buying Air Europa?
Yes it gets more planes and more routes but they are two things IAG is actively shedding right now.
Yes the price is lower than pre-pandemic.
Yes it takes out some of Iberia’s competition.
Still seems a questionable use of £500m to me.
Happy to be enlightened by someone more knowledgeable!
Fishyboy
FWIW here’s my take....
Stay in if you can. That £800 can come back as quick as it disappeared.
Consider why you need to sell now. Do you have an urgent need for the money? A better investment in mind?
If the only reason you are selling is because you are down and it hurts that isn’t a great reason. Hang in if you can!
Good Luck!
Fb22, IAG have been working on this for a number of years due to the possibility of brexit. I’ve enclosed a section of an RNS by IAG that shows the non EU shareholders. That leaves the other 60.5% as EU holders. Hope this helps
On 17 January 2020, the share register of IAG shows that ownership of IAG's issued shares by Relevant Non-EU Persons is 39.5 per cent.
But these percentages must have changed significantly just a few days later when UK citizens ceased to be part of the EU number and became part of the non-EU number?
It’s the “all of 2021” bit that was news to me. Doesn’t fit with any narrative of things returning to normal by Q3 or Q4 of next year.
Doesn’t directly hinder IAG but it certainly isn’t a positive indicator!
Sorry my last post was in reference to https://www.cnbc.com/2020/12/09/white-house-coronavirus-task-force-backs-restoration-of-inbound-travel-from-brazil-uk-and-europe-sources-say.html as posted by sundezena earlier this morning.
Good news that this recommendation is sitting in the background. Sadly with the current situation in the US it is bound to remain in the background a while longer.
What a great day it will be for IAG when the USA re-opens to tourism.
I expect some dark days between now and then but holding firm now is the right move.
It doesn’t ALWAYS drop more than other airlines!
Any price which increases 70%+ in 3 weeks is vulnerable to pullbacks.
IAG is hugely dependent on transatlantic traffic being restored quickly. It is essentially a burning platform. Cash is OK for now but change is needed to survive.
All looked rosy but the Oxford/AZ vaccine issues will delay FDA approval which could well hinder progress on reopening the UK-US corridor. Vaccine certification is bound to be required and if Brits have certificates for a vaccine not approved in USA that is unhelpful from the travel perspective.
Also there is a hint of politics and perhaps protectionism getting in the way. Also unhelpful.
Nevertheless a great buying opportunity this morning.
I really like your posts WASU. Your viewpoint is generally a touch more positive than mine but always good to hear. Many of the posters on here are great. Please don’t think about selling out yet even if you bought at 88p and have been rewarded. Still further rewards to come. There will be down days but the strong mentality WASU refers to is key. Many on here have held tight in much tougher situations. This is the easier bit now.
Still plenty of possibilities for a pullback (as well as further rises).
- Vaccine logistical difficulties
- Vaccine safety scares (hope not)
- Failure of governments to prioritise air travel amongst all their other problems.
I’m positive about the long term but it’s not necessarily a smooth journey. Even as COVID fades there are many problems in making IAG anything like as profitable as it was.
I don’t see IAG being interested in Norwegian at any price. What I do see is IAG benefitting from the demise of a competitor that has driven fares down.
Pre COVID it was very noticeable that there two tiers of fares to the USA. Cheap flights to LAX. SFO, NYC, MIA, AUS where BA had to compete with Norwegian. High fares to LAS, PHX, DFW, IAH where no such competition existed.
The absence of Norwegian going forward would be a huge boon to BA/IAG. Not so much for the consumer.