Member Info for TheGreyMonk

Whilst I am fully aware that share prices move on sentiment short term, in the long term they move on fundamentals. The fundamentals are that the company is far better capitalised than it has been since pre covid and those buying today are buying in at a price of less than £1 a share pre the 10 for 1 consolidation - actually currently its nearer 80p a share but taking into account the costs of the Rights issue it is still less than £1 pre consolidation and a far stronger company. The market will recognise this and rerate the shares as soon as it realises there isn't still a a raft of sellers (whenever that might be) and I can see £7 a share before long with a £10 target within 12 months. Tui has gone from a small holding for me to my biggest holding over the past week or so and I'm sleeping very easy.

However there's no certainties in life so do your own research

The underwriters dont get the shares at the 490p or 5.55 euros equivalent - they sell any surplus into the market at whatever price they get. Then those who did nothing get the difference between the rights price and the price of the shares sold in the market - The underwriters only pick up the shares if the share price is below the rights. Because of all these new shares coming on to the market is why the share price often tanks during the process. If the company is solid then when the indigestion of the new shares lifts the share price usually rises. Ive done very well out of buying shares no one wants in rights issues over the years - but you have to have balls and patience

The ones in my HL account also show the same - they will rank parri passu with the existing ones so are showing a profit at 558 of around 70p a share. But HL still show them at 493.77

It was 2749 shares after the 10 for 21

Yes but there has been massive dilution by 3 rights issues.
If you had 1000 shares pre the first rights issue after the 25 for 29 first issue in Jan 2021 you'd have 1862 shares taking up all rights -
After the October 2021 rights issue of 10 for 21 you'd have 2729 shares - the 1 for 10 consolidation means you'd have 274.9 shares and taking up the 8 for 3 current issue you'd have 1007.9 shares - obviously part shares only shown for direct comparison.
Hope that helps

But if we know they are going to do this then we can profit by it by buying when the price collapses - this always happens and they try to and usually succeed in spooking the small investor

You're forgetting the value of the rights to buy the shares at 488p which are trading at a discount because many cant actually buy them because their stockbroker wont allow them to and therefore there are more sellers than buyers but the arbitragers will be out very soon

Well I've bitten the bullet and taken up my rights in full on my physical shares - just over 1000 shares, and bought another 2000 rights in the market at around 60p to take up the rights at just under £5 each - sitting on around 4000 now. If there's an overhang then it may take a while for that to shift but I'm convinced I'm buying decent stock that I'll make money on. If the discount on the rights stays I'll buy a few more before they stop trading. Good luck all but don't be frightened by the volatility - This is normal

Why should it worry you?

The rights are trading at around 65p

You pays your money and takes your choice - Tui haven't been kind to existing shareholders but the lower it falls the greater the recovery. The company has the money to come from the underwritten rights issue so the comoany is far better financially than it was yet valued lower. I love these rights issues

you can buy the rights issue at 5.55 Euro's each which is currently around £4.85 - take into account 1% for currency charges buying the Rights at 66p mean you can buy exposure to a share for less than £5.60. If you want to arbitrage you could sell the Ordinaries around 590 and buy exposure via the Rights. Personally I've been buying Rights and will take up the shares in the Rights Issue. I plan on holding them. I also anticipate further falls this week to flush out the weak holders who will panic into not taking up their rights followed by a swift bounce back in the next few weeks

Ive only been able to trade via spreadbetting via Spreadex - if you do that make sure you instruct them to take up your rights or they may expire worthless - Ive bought the rights because they are cheaper than buying the physical - thats because there are sellers and not many able to purchase the Rights in the market. Its not manipulation its a lack of buyers and worried sellers - Ive usually done very well out of buying shares after going ex rights

because im happy to buy the shares at 590

Well you say it's a scam - I say its an opportunity. Ive just bought some Rights to buy the ordinaries in the RI at under £1 each - I reckon its about £4.90 a share (based on 5.5 Euros) or the equivalent of about £8.60 pre rights or 86p pre 10 for 1 consolidation. On a 12m basis Im happy to buy more if they keep falling on the basis that weak holders will panic and sell out at the most inopportune time - Tui is far better capitalised than it has been for some time after the 3 rights issues - admittedly shareholders have been shafted but I've only just got on board - so good luck all

Thats a fair point - but an increasing sustainable dividend from a rebased dividend will still be a decent yield. Share price has fallen too far. Im a buyer

I've been buying these over the past year - my first purchase was 300 shares at 159 , and I've now 7500 at just over 116 - as usual I started buying too soon but I'm reading the results and confident there's upside here

I topped up yesterday afternoon and I've not seen anything in the results to stop me buying again this morning

Im a small shareholder in this organisation. In all honesty the negligence shown here appears criminal. Listed in 2015 basically as a Shell shareholder funds have been wiped out without even a whimper of competence from the board. There has been silence for over a year. When capital appeared short some three or 4 years ago a rights issue at say 10p could have saved the company from this death fall . There has been nothing. Statements saying how well some parts of the business are doing yet no dealing with the real corporate issues that shareholders need. The Board of directors should be made to pay for the gross negligence. Fortunately I've not lost a lot but I'm angry as to why it seems no one brings them to account

Thanks for your insightful comments!! I'm sure everyone is hanging on to your every word!