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We will get to £2 in the not too distant future IMO. To those who don't believe in this share and are predicting a much lower price (as some stated only last week) go ahead and short it!! hahahaha. this is heading higher my friends!!Those muppets at Marshall Wace who increased their short only on the 19th Jul, poor them..it must hurt!! oh well, they deserve a good return, albeit negative!! hahahaha.
Thank you fordm
I think if we can keep above 165 is a good start and head towards the 170s, I think interest rates will go up this week but probably by only 0.25 percentage point, from what I'm reading the experts recon we are near the end for rises. This will hopefully provide some confidence to the market. When are the next inflation figures out? If we can show that wasn't just a blip last month and costs are coming back down, then hopefully SP here will go northwards being dragged up by wider FTSE 100. GL All!!
Hello tricky, was wondering where you got to.
Yes, I saw the UN's Guterres fear mongering speech, nothing like financially capitalising of Al Gores grift.
Anyway, glad you are ok and enjoying your fishing.
We are unseasonally lower on our temp in Switzerland right now and looking at the next ten days, seems about the same.
So in 5 days you will have no more free time! Retirement does that to people, they seem to be more busy than ever, perhaps a good thing considering we will all be dead in about 5 minutes anyway, according to the experts.
Also, I do not see Ukraine/Russia thing ending soon, I think things will progress as we enter into Autumn. Have heard nothing about ending the conflict, even the allies have said nothing to encourage a peaceful resolution.
Oh well, at least the sp clawed back some losses on Friday.
Keep well and enjoy your lake fishing.
Hi Fordm and all who know me
how are you enjoying global boiling. not sure it applies to uk.
things here in rostov on don, getting a little more scary with resent attacks near by. even talk of testing air alarms now. that should be interesting. hope it dos nor effect fishing. ive had a few fishing trips now. and i can say, the local russian fishermen are really friendly and helpful. no sign of hatred as it is clear im english. but it is rather hot. some days 35c .
now zelensky is attacking moscow. i think things could get a little bit more heated. thankfully im not required to go to kiev. but been asked again if available for gadansk. not that interested now. as i reach my retirement age in 5 days time. so time to hang up tools and glide thru remaining years.
hope you all are keeping well .
regards
kevin
I agree, I am pleasantly surprised by Fridays results - a lot better than expected.... So my money is on North not South this week and I think 1.75 a stronger possibility noting this is new ground for this year. £2 by Q4 as Ive always maintained. Bailey wont raise interest rates - you heard it first here!.... The need has gone.
All 3 IMHO are liable to really start to motor North in the coming weeks/months.
All IMHO.
Here today. Looking forward to next week - it will be interesting to see if we can build on last weeks positivity, or will we follow an all-too-familiar pattern where a small burst of optimism rapidly dissipates. Will the muppet Bailey pull the rug from under us on Thursday? Probably. Like to be more optimistic, but recent experience dictates otherwise.
Delighted to be proved wrong. Let's see what happens.
I spend too much time trying to work out if I have enough to retire lost of spreadsheets lol It would good to start buying Gov Bonds in the not too distance future tbh. lol
Well I am looking for a Retirement out I had really big RR holding ridden from 90p to 185p, all those eggs are in IAG now, as Q3 is 80% booked already, so over £2 maybe £2.30 at Q3 results is my aim.
Agree we don’t know the future ,my target price is on the assumption that, no fundamental change in the macro environment ( I.e. no more Covid , Russia war situation either improves or does not deteriorate further , no other war such China / US/ Taiwan/ Japan , inflation situation does not get worse etc )
I feel for those who bought pre covid level, however I invested during that period when both stocks about to collapse ! That is why I said check my post , in the last 3 years !
Every investment comes with risk, Iag and Rr not immune to that , from my optimistic risk taker perspective, both are are at the growth stage and still recovering, we should expect better returns! Comparing to US market these are cheap stocks at this price ! I had invested in Tesla ( gone from $110 to $270 from last December, same for google, Amazon ) , it’s all about market sentiments, once this improves, institutional investors starts buying UK ftse 100 stocks , below £2 will be in the rear mirror!
Dyor
SS17, whilst the figures you posted about RR and IAG in that time frame is correct, it is also inaccurate.
As both those lows were not the starting point of their sp's. It was at their lowest in 5 years.
If you bought both shares at their lowest point, you have done extremely well, if you, lie many bought in before the lowest price, then the rise is very much different or maybe not even hit some breakeven point.
So, while you may be enthusiastic and upbeat, many on here joined this sp long before that and so do not share your euphoria and look for a higher number to exit.
Having said that, as someone who has a very large holding of this sp, do not see it hitting 350 within the next 2-3 years. There are too many obstacles to climb, including the eco climate terro rists agenda.
Let’s wait and see …. Patience is required here ! For records, You can see my post when Iag was £1, now nearly 60% up, you can also see my post on RR was 60p now £1.93! Many at that time made pessimistic comments it going bust , if Rr can go from 60p to £1.90 and Iag from £1 to where it is now why can’t it go £3.50?
I’m still holding both ( with big profit) as I said the top two post recovery stocks !
Market does factor fundamentals and eventually reflect , only those short term and day trader can’t see that ! When I buy a share I see I’m buying a business , not for day trading , we need to let grow and then see the fruits
Dyor
GRR you cannot deny that these Q2 results were impressive - better than I was expecting. Should Q3 results reflect an excellent summer of flights and should forward looking winter bookings esp in business class suggest sustained demand then this SP will hit £2 minimum. Agree however that macros and the fact insurance funds and many of the big boys are still on the side line means this SP would hit £3.50 until change on these fronts occur and that wont happen until 2024 once Govt legislative forcing pension funds to invest into UK equities (Im sure the defn will include international equities owning UK businesses ie IAG) is passed....
SS17,
If we hit £3.50 then I would imagine there would be many folk on here dancing a merry dance!
That kind of figure is almost back to its dizzy highs, and from my humble perspective, I think the downward paranoia and market fear of another climate outbreak will prevent that from happening.
In 2006-08, penny oil shares (MXP, RRL, BPC, MTA) spiked from 2p to £1 on what their reserves was reported at.
The whiff of a wildcat well trebled the share price.
Those days of sentiment and talk on SP increases are long gone, but what has sadly remained is; any whiff of bad news and the SP will retrace.
The market changed after the 2008 recession, and share prices only moved on tangible (generally financial) evidence, and they moved slowly.
Good luck with the £3.50 target. I hope we all get our greedy fingers on it...
Was expecting 10% rise following the trading update , not a bad start 6%+! As many have already said here , Iag is going towards a profitable, sustainable world leading airlines business! We have seen debts reduced by €3b, with over €1b profit, reached nearly 100% of the pre Covid level , Q3, and q4 already started looking good !
What else need from an investors perspective? I have loaded before the result day and will hold for long term , I see re rare coming , my target get price £3.50. Short term it may hit £2.20+
Dyor
It's the kind of sentiment from the below link that many peeps in the travel sector believe tourism isn't sustainable.
https://www.proactiveinvestors.co.uk/companies/news/1022054/is-iag-s-record-performance-sustainable-1022054.html
I've never announced on this (or any board) that a share price will 'pop' and or 'explode' on forthcoming news, but to eventually the negativity and or fear of the wider, media consensus of the travel sector won't be hampered by continual concerns of war, recession, oil, and or COVID, then at some point the SP has to revert back to where it was.
The travel sector may be responding immensely poorly to current market conditions of war, recession etc, but what we do know is; IAG isn't underperforming and or reacting to the consensus of the sentiment of the travel sector.
A few peeps on here have slated IAG, and Which I think is unfair.
IAG has performed well. It's paid down a huge amounts not of debt. Turned a massive profit, and the current year ahead looks promising, which means it may do the same on the next quarter.
I believe IAG is a good stock at these prices. If you can handle the long road then there is a profit to be gained.
If you want a quick buck, then definitely not.
P.S I type this from my balcony in Illetas , Majorca.
I'm enjoying a solo holiday (but I can't help myself by trawling the net......).
Maktub.
Thoughtful and worthwhile contributions as always. Good man - keep 'em coming (as the actress said to the bishop).
TUI’s 10:1 might have ‘upped’ the share price but reduced divi to 1/10th, at that point I bailed. I’d rather an honest No Divi, than a shafting
Just read the Hargreaves Lansdown take on the Rns, and I had to share...
Our view
British Airways owner IAG has had a stonking first half. Backed up by soaring leisure travel demand and the reinstation of pre-pandemic capacity, profits have well and truly come along for the ride.
There's also been successful moves on price increases, despite the considerable pressure on customer incomes. That reflects the tailwind that is pent up travel demand. The second thing to consider is consolidation in the airline industry. A handful of smaller carriers have gone out of business and IAG's acquisition of Air Europa means there's more market for the taking. This doesn't upend the investment case, but it's a helpful market dynamic and shows the benefit of having strong, trusted brands in this business.
There are some things to keep in mind though. While pent up travel demand still has room to run, it can't go on forever. At some point we'll see what normal demand looks like once more. There's a very real risk that consumer behaviour is yet to fully adjust to a world of higher inflation and increased costs. If spending starts to rein in, we could see the strong forward order book come under pressure. The group's also more exposed to business travel than other short-haul focussed carriers, and that corner of the market is taking longer to recover.
Costs are also a drag, thanks to the wider cost increases that come with getting this giant bird of a business back at full height. This means pre-covid levels of operating profit aren't expected for a few years. For now, lower fuel prices should become profit-plumpers if sustained, but this is outside IAG's control and could change at short notice.
Our biggest concern for now is the group's debt pile, meaning that interest payments were north of €824m last year. Debt is reducing and we're pleased with the direction of travel but shareholder payouts could take a backseat to debt management for a while longer.
For now, it seems the worst is over for IAG and the current risks to demand look more like turbulence than a full stop. We're a lot more positive than we've been for some time. But keep in mind, IAG is likely to face the worst of any slowdown in consumer spending.
Record results, super profit, reduced debt, guaranteed revenue already in advanced bookings. This share is off the ground. I don’t think the results could have been any better - one day rise over 6% is in my opinion a fair start. Some recovery plays are more obvious than others, I do believe the shorters are leaving this plane and this passenger is happy. Much more to come IMO but saving any disasters good to be on board. GLA and DYOR 🍦
On a last note.....
I know a lot of us say, "this time next year Rodders....." but with continued strong quarterly results, which prove the travel industry is back to its previous best, then we will all make money from this current level.
And, it seems as though next quarter is off to a good start;
"Roughly 80% of the third quarter's passenger revenue are already booked and 30% are booked for the fourth quarter."
Laterz.
If it had, we may have had a slight rally over the following days but now, the weekend may dampen people's appetite.
Nonetheless, this company is on a road to recovery. It's just a long and slow road.
Have a good weekend all.
GRQ.
I think many institutions were waiting to see if post covid boom would die out. Unfortunately this company needs to do either very well or bloody amazing. Any other result is a risk due to the debt.
The fact that forward bookings are still quite so strong and IAG are managing the debt better than expected is a real driver here. I dont think we will see the usual fall this time, in fact I think the predictions of 2 quarters of assured stability is enough to get traders and investors back in again.
There should be no discussion of dividends in my opinion until the debt is far lower.
I'd love that price especially after getting burned with cineworld for a heap of cash