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Previous report said profits were expected to be ahead of market expectations.
One step down from that is 'at the upper end of expectations', and this says 'in line with expectations.'
Seems like a climb down perhaps?
Trev
Thanks again regarding opinions RE sp and rights issue TMT and PM and any others that I've missed. Not a ramper or deramper, wouldn't bother wasting my time either way. As if anything anyone says on these boards could influence an SP of a company like this.
Cheers again.
Trev
Cheers Triumph.
Never had any dealing with a rights issue.
So, if I understand you correctly, if they didn't do the rights issue and it eventually got back to say 570 (as it's 3 times multiple of today's current so) you would have made 300 % return, but if they did do the rights issue on a 1:1 basis, you would only expect a share price recovery (all things being equal) to 2.85 (and 1.5 multiple of current sp). I know you could stump up double the cash and all things would then be equal, but by my way of looking at this, this makes the share half the prospect. (Could have completely misunderstood of course)
Cheers again
Trev
I'm bright enough to not get into arguments with those not bright enough to avoid them !! But I will say, of all the intelligent 'adults' I know, none of them uses lol..... By the way. Thanks for support to those who see silly digs for what they are. Anyway, I'll still ask the same question - no need to reply bovey.Will RI not cause a tumble at some point prior to given date? Realise they already dropped considerably but surely a further drop possible towards announcement date?
Is it on the back of virgin announcement or ezj picking up volume announced yesterday. Not sure how this changes long haul situation of IAG or the fact that soon a rights issue will be announced which will surely drag price down??
Thanks for your reply leisurely...
Still unsure as to the following point though if anyone knows. If number of shares are doubled in rights issue for example, would that not mean that the same companies share price with the same turnover would half that before rights issue. Ie. Even if IAG recovered to pre covid levels regarding profit, would the share price theoretically be half the recent high of 680 due to there being twice as many shares in circulation?
Cheers all
trev
Hello all. Have read lots of contrasting opinions about this and think i have a handle on it but would welcome input.
MAIN QUESTION IS ....Am i right / wrong in presuming that a doubling of shares in issue effectively halves the value of each share?
I know the RNS said a maximum of 2.75bn, but if we take this as what they intend to raise my calculations are as follows.
If they gave a 20% discount on current sp 1.72 (1.376) at a dilution of 1:1. with 1.985 bn shares in issue, then another 1.985 bn shares issued would raise 1.985 bn X £1.376 a share = 2.73bn. Which seems to be about right.
MY MAIN QUESTION HERE IS......... if they issue double the number of shares (and presuming at some point IAG gets back to full strength - say 4 years) surely that means that the share price would only be back to half its recent high in Jan 2020 (which was 6.80) so about £3.40. Am i right / wrong in presuming that a doubling of shares in issue effectively halves the value of each share?
Any well meaning replies would be welcome..
Trev
Hello all.
If a rights issue is announced tomorrow morning would you need to be a shareholder tomorrow to get 'rights' or like when a share goes ex dividend, need to hold the day before a pre determined date. Never come across a rights issue before.
Many thanks
Trev
Hello all.
Many people on here mention that this is a bargain as recently it was 6.50 (ish) a share. Im not denying this, but...
Towards the end of February, it had already dropped to 4.15. as far as i can recall this was before news of coronovirus hit. Does anyone know why this was at that price at the end of Feb?
Trev
Hello all. New to this board but have bought a small amount of shares thinking there might be a decent uptick.
Just reading BA getting through 20m a day. That's 600m a month over the last three months, that's 1.8 BN already - and just out of 1 airline.
Does anyone on here have any information about the rate of cash reduction from other airlines in IAG group?
Wondering how long this 10 BN can realistically last?
Trev
Realise this is the wrong board. Hold some TW. but been looking at the massive drop on Bdev. Has anyone on here looked into financials of BDEV. Have they got more Debt than Tw? The drop on the 19th was down 65% on recent highs of about 850.
Trev