The latest Investing Matters Podcast episode with multi-award-winning fund manager and international bestselling author Lee Freeman-Shor has just been released. Listen here.
London South East prides itself on its community spirit, and in order to keep the chat section problem free, we ask all members to follow these simple rules. In these rules, we refer to ourselves as "we", "us", "our". The user of the website is referred to as "you" and "your".
By posting on our share chat boards you are agreeing to the following:
The IP address of all posts is recorded to aid in enforcing these conditions. As a user you agree to any information you have entered being stored in a database. You agree that we have the right to remove, edit, move or close any topic or board at any time should we see fit. You agree that we have the right to remove any post without notice. You agree that we have the right to suspend your account without notice.
Please note some users may not behave properly and may post content that is misleading, untrue or offensive.
It is not possible for us to fully monitor all content all of the time but where we have actually received notice of any content that is potentially misleading, untrue, offensive, unlawful, infringes third party rights or is potentially in breach of these terms and conditions, then we will review such content, decide whether to remove it from this website and act accordingly.
Premium Members are members that have a premium subscription with London South East. You can subscribe here.
London South East does not endorse such members, and posts should not be construed as advice and represent the opinions of the authors, not those of London South East Ltd, or its affiliates.
It dropped to 300 due to lockdown and speculation.... it certainly doesn't deserve to be double that given significant reduction in demand and increased operating costs. Further, continuation of many regions as no flight zones.. I would expect this to hit the 500's
It did dip in the low 2s on the day Heapey bought his shares. This imo is getting into bargain territory given the market share the company now has in the Uk. I know further setbacks will come but is that now priced in?
It dropped to 300 when the virus was a complete unknown and everyone was assuming a risk the company would go bust. In the 2020 annual report, the company have estimated that they can survive a no fly situation that lasted until August 21 - the situation now is nothing like it was back in March, so the share price shouldn't come close to retesting those lows.
If you do a reverse DCF, at 600p, the market is effectively saying that the 10 year+ free cash flow generation of the business is going to be ~77% less than it would have been based on the March 2020 annual report. Unless you think the business is going to go bust, 600p is a dirt cheap valuation. Here's the quote from the annual report on liquidity:
"Due to the level of uncertainty of how the operations of the business may emerge from the Covid-19 pandemic, the Directors also modelled a further “no fly” scenario through to 1 August 2021 to assess the liquidity position over the entire going concern period of at least 12 months from the date of signing of this report...The Directors concluded that given the combination of a closing cash balance of £1,387.5m at 31 March 2020, together with the additional actions taken to increase liquidity since the year end and the forecast monthly cash utilisation, the Group would have sufficient liquidity throughout this period."
Jmc
Good post. It did dip below 2 during the day when Heapey bought. I know because my £2 buy order got triggered.
Since sold of course but still on on my radar as a good recovery share.
jmc
The 1 billion you talk about has now gone was customer summer 20 money now all paid back so forget that for starters
Hence the borrowing
100 mil bank facility
Fowler Welch sale 90 mill
270 mill Equity raise
300 mill Co vid loan.
Over 1 billion in liabilities due soon
Its not looking good at the moment and growth will take 2 years if some sort of normal returns in spring 21 all imho
Easyjet closing 3 bases losing 700 jobs. I'm a hold on Jet 2 as there is too much uncertainty in this sector.
Roll on 2021/2022!!!!!!!!!!!!
been a liong termer and have a large part of portfolio held here. Growing a bit tired of its lack of solidarity. Was showing signs in late July and August of some day on day recovery whereby it was heading towards 800p, which hasn't been seen since June. Alas a shakedown on the travel restrictions, even to places that they don't go to and its washed away all that good work. I am going to see it climb out to 700s and I will ditch it. Feel there are better eggs to back with a large holding which are moving and more solid and this is the only one in my portfolio showing red and not a healthy red at that.
rcdm - if you want excitement put your brass in AMGO - dyor but this is already on it's way and will only go up in the next month
I think good News is coming very soon for this stock. I have a large holding in Avacta which has a 10 minute C19 saliva test under review by the govt. Matt Han**** of BBCR4 this morning intimated that it was being approved and would be ideal at airports for rapid testing. If this is correct (and AVCT SP has lept on this news) then it won't be long at all before airline stocks get a healthy bump I would think. And by that I would expect any time now - 48 hours. imo dyor
Day traders heaven that, but sorry not for me. +7% one day -14% the next, stop orders galore..... eh, i'll pass. I've binned DTG today and off into other parts of the portfolio. Lesson learned!
I'm no day trader RC, but if this test does come in and previously DTG said they could exist without flying until 08/21, then I would have thought 800-1000p was on the on the cards pretty quickly?
Wyndrum based on the volatility of the sp after last friday, it dropped 16%. Cant really be bothered waiting for mpre issues in travel throughout autumn for the price to go to 700-800 odds then throw it away in 2or 3 days.
I moved this morning and gained 15% at avacta. Dtg would have taken easily 2 werks with no hiccups to get there.
Ill come back in but when its less volatile.
RCDM - Ref AMGO - you are totally WRONG mate.
Everyone - go to the AMGO BB site now and READ!!!!!!!!!! This share is about to fly and there are a LOT of very very happy investors on the AMGO BB tonight!!!!!!
I am not a ramper/deflater - I'm just a simple - non skilled - bloke with some money to make. DO NOT miss out on this!!! I don't want to have to tell you "I told you so"
expru totaly agree
Re amgo, iv had a look and was aware there was some ownership credentials, my previous was that it went up/ down like a yoyo. I see its had a solid day
Ill pop over as you say for a more in depth review. Appreciate the friendly heads up
So fellas n Ladies - who turned over last night n had a look in at AMGO and bought in first thing this morning??????
TOLD YOU SO - Ha Ha - You're laughing now toooo!!!!!!!!!!!!!
LOL - I did pull half ages ago into AMGO.
I just wish the rest will rise so it pays for my JET2 holiday.
Expru, left you a cheery message on the amgo site this PM. Got in early. Good stuff.
Fat Bloke n Rcdm - I hope you will be very happy - I know we Los Amigos are!!!! Looks loke Vegas and Barbados ARE on the cards : )