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You are Absolutely spot on Moonman!
More Good news!
https://www.transport.gov.scot/news/further-526-million-to-maintain-bus-services/
There is no doubt NEX has less risk & more potential right now and its good to see it recovering well as I have a larger holding there but there is excellent value to be had here at SGC.
The impact of covid has been factored in already, we are still at a quarter of pre covid SP and the war chest has improved slightly.
As FGP and NEX continue to recover the potential and therefore interest from new investors will obviously decrease, they may just look to SGC! I am certainly considering reducing NEX holding now and increasing here. Decisions, decisions?!
Sums the Trading Update up perfectly GZ!
Excellent, confirms what most of us thinking and perhaps even better TBH.
Actually in a slightly stronger position than July in spite of messaging re public transport.
All good, close to 50p today IMO and further recovery inevitable. gla.
We will obviously get a good steer when Fridays trading update is due but I would expect it to be much the same as last NEX update and look how Their SP has done since!
Agree DC thing do look precarious at the moment and earnings have dropped off a cliff, after all SGC is supporting the Governments messaging re social distancing and have reduced capacities while operating normal service levels in exchange for funding to break even. Exactly the same with NEX and GOG uk operations.( I have more invested in NEX than here by the way)
SGC cash piles could last to eternity under the current agreements, not quite the same for NEX who in their last trading statement were very open about 60% of their ALSA and some N America revenue being at risk.
However when the virus is under control and the messaging changes revenues will steadily increase, tho not initially to pre covid levels. Therefore SGC, NEX and GOG will cut operations to suit, they will not operate services that are not profitable.
all of the current covid concerns are factored into their current SPs , all will easily survive this and all may even be stronger after this. There will be opportunities for all 3 (and FGP) to grow in the fallout of the pandemic with many smaller operators unfortunately not surviving.
IMO there is little risk at this current SP and any risk is far outweighed by the potential upside. Same for NEX and GOG!
If we stuck to Company fundamentals and balance sheets this investing would be easy eh?!
Aargh, you have found me out Moonman!
Going round in circles here but I will make the point once more and hopefully you will understand my viewpoint.
I only Invest and visit BBs I am genuinely interested in and can see a potential upside, therefore I admit that I am always positive on my posts.
I cannot understand why folk take the time to visit and post on BBs when they see no upside, are not invested and are therefore negative? Unless of course they wrongly assume they can affect the opinion of other investors therefore the SP.
I just don't buy into the balanced view is great rhetoric! And that seems to be the general opinion on most BBs.
Tweedledee was making a point Moonman, no sign of you or DC yesterday when the SP was +12%?
DC; your correct Covid will affect earnings for some time to come but SGC are masters at reducing costs and that is exactly what will happen when the funding is removed
The subsidy is in place due to the Govts demand for a full public transport service while implementing THEIR social distancing measures and messaging which is harmful to the sector. How can a business be Strong right now with these constraints in place? Operators are doing their bit by assisting with the messaging, operating full services and reducing capacities, why should they not be compensated for doing that, it does not make them weak businesses?!
SGC is not in a precarious position, public transport will always be at the heart of a good economy and the answer to congestion and pollution, SGC know that Governments know that and so do most folk.
Going Bust a possibility, your having a laugh, Currently NOT operating at a loss with 800m cash in hand?!
It may well do Scoote but there’s no doubt it’s on its way back to 200+ range very very soon.
230 is only another 4 days same as today!
agree but where has the Falkland one gone?? Oh, just remembered he sold up and was waiting on sub 120 to get back in, oops!
Still not to late all, this has bags of upside left.
Moonman I think your smart enough to know the answer to your question is yes,
What I really struggle with is why people spend time looking at stocks and joining on BBs when they are clearly very negative about them. Ok you say you have a soft soft spot so just buy a little here and then go invest more time and money in a stock that you see has real potential and promote it.
I gave my positive thoughts on the potential here, do you agree or disagree?
I do like a bargain and public transport, have been long into both SGC and NEX. Good time to expand into GOG as well now.
Here goes!
Ok Timmy so you have looked at SGC from every angle, decided it will barely survive yet here you are today having another look(bargain hunting I assume)?! Doesn't really make sense?
Moonman/ DC same?
Current SP is a @ 1/4 of Pre Covid price, same as other major public transport players and SGC have historically paid excellent dividends yet you see no plausible upside, come on! passenger levels have gone from 10% at lockdown to almost 60%, not to shabby as we are still very much in this pandemic so to suggest SGC will not survive is ludicrous, public transport is a necessity for the masses not a luxury. Yes there will not be a return to pre Covid passenger levels but just as before the virus non profitable routes will go or be subsidised even further, Margins will be maintained.
We All knew a positive RNS would be massive, hopefully this is just the start!
Shame SGC couldn't hang onto the shirt tails a bit tho?! Cant win them all!
yep the ERMA is for train operators but the separate funding for bus has been agreed for as long as needed?
and probably should have added SGC have no overseas risk exposure ATM.
at least were out the red and heading for a blue day now!
defo not missed your chance yet BusInvestor! Get on board!
No Sense or reasoning to this downward trend, SGC are the least exposed of the big 4 with no rail involvement. Bus patronage is well ahead of train ATM so don't understand.
GOG and NEX statements much better than anyone expected so WTH is going on here?
Will just have to keep adding more at this ridiculous low price!