Discussion
I've only recently been paying a bit of attention to share values to see if I fancy getting involved and just wondered if with the share value down to 3.7p today is anyone jumping on this hoping for a recovery and a big bounce?
I'm not in a position to do it at the moment but I imagine there is the potential to go big or bust.
Or am I looking at it the wrong way? As I said, I'm completely green on this so just currently interested in watching what happens.
I'm not in a position to do it at the moment but I imagine there is the potential to go big or bust.
Or am I looking at it the wrong way? As I said, I'm completely green on this so just currently interested in watching what happens.
https://news.sky.com/story/thomas-cook-gives-up-ho...
''A request for emergency government funding was made by Thomas Cook earlier this week, with executives arguing that the cost to taxpayers would be dwarfed by the bill incurred by the repatriation, led by aviation regulators, of 165,000 customers currently overseas.''
I hate blackmail.
''A request for emergency government funding was made by Thomas Cook earlier this week, with executives arguing that the cost to taxpayers would be dwarfed by the bill incurred by the repatriation, led by aviation regulators, of 165,000 customers currently overseas.''
I hate blackmail.
Thesprucegoose said:
https://news.sky.com/story/thomas-cook-gives-up-ho...
''A request for emergency government funding was made by Thomas Cook earlier this week, with executives arguing that the cost to taxpayers would be dwarfed by the bill incurred by the repatriation, led by aviation regulators, of 165,000 customers currently overseas.''
I hate blackmail.
Yet they won't assist Sirius Minerals with 1200 jobs in a deprived area at risk and a prospective exporting business...''A request for emergency government funding was made by Thomas Cook earlier this week, with executives arguing that the cost to taxpayers would be dwarfed by the bill incurred by the repatriation, led by aviation regulators, of 165,000 customers currently overseas.''
I hate blackmail.
A dead cat bounce is all you can hope for at this time. There are better shares to take a punt on that this. The last big airline financial win for the small guy that I recall was the recovery of airline shares after 911 when they all took a big hit... and improved in price significantly a matter of a few weeks later. That was about the sector news, not the individual businesses, that's the difference.
My money would be going into Dart group (jet2) as any future bookings for easter or summer 2020 that was destined for TC will now be distributed elsewhere. Jet2 are also benefiting from the Boeing max fiasco (Ryanair contracting routes as we speak) and they don't have the overheads of retail units on the high street which as we know is also taking a battering.
Even if TC secure the funding they will burn through some serious cash over the winter on the back of seriously low bookings. I doubt they can recover to be honest.
Even if TC secure the funding they will burn through some serious cash over the winter on the back of seriously low bookings. I doubt they can recover to be honest.
pembo said:
I've only recently been paying a bit of attention to share values to see if I fancy getting involved and just wondered if with the share value down to 3.7p today is anyone jumping on this hoping for a recovery and a big bounce?
I'm not in a position to do it at the moment but I imagine there is the potential to go big or bust.
So, what do you think?I'm not in a position to do it at the moment but I imagine there is the potential to go big or bust.
pembo said:
I've only recently been paying a bit of attention to share values to see if I fancy getting involved and just wondered if with the share value down to 3.7p today is anyone jumping on this hoping for a recovery and a big bounce?
I'm not in a position to do it at the moment but I imagine there is the potential to go big or bust.
Or am I looking at it the wrong way? As I said, I'm completely green on this so just currently interested in watching what happens.
I hope you didn’t take the plunge.I'm not in a position to do it at the moment but I imagine there is the potential to go big or bust.
Or am I looking at it the wrong way? As I said, I'm completely green on this so just currently interested in watching what happens.
If ever there was a case of ‘catching a falling knife’ this was it.
pembo said:
That's why I'm just taking an interest rather than putting my money in.I really was hopeful that they would find a way out
To be honest the company is a poster boy for the junk management that has dominated major enterprise for a couple of decades now.
Take an established enterprise with asset, sell off all the assets, borrow money to lease them back. Bosh, massive result by the Board. Whack up pay, pension rewards and bonuses. Buy market share by borrowing even more money to uncompetitively lift market share from elsewhere. Bosh, massive result by the Board. More pay, pension and bonuses.
Keep it all going until the debt pile is too big to survive any slowdown or rise in servicing costs and the company has no assets. Then just bin it for a quid if possible.
The core reason why the high street is suffering is that they’ve all stripped themselves of all their assets over the last twenty+ years and loaded up with more and more debt in order to easily fudge growth.
Even most start-ups are just about copying an established business but massively undercutting it and taking its share by burning vast levels of investment capital. When the capital starts drying up, switch to debt and just hope that you’ve taken enough of the established players’ business before that dries up and then try to whack up prices in an attempt to be profitable or just fold.
WeWork is a glorious example of the VC farce of not actually creating anything new but just using cheap capital to destroy established businesses and those established businesses have no foundations from which to fight back from because they’ve flogged them all off and buried themselves in debt faking growth so as to deliver massive rewards.
Thomas Cook is a poster boy for milking management just not having the skill set to navigate an established business through the changing retail environment and eventually getting caught out by a simple change in the economic environment.
If it weren’t for the damage done to the normal employees and the satellite businesses that will suffer then it would be a clear cut case of good riddance.
DonkeyApple said:
The core reason why the high street is suffering is that they’ve all stripped themselves of all their assets over the last twenty+ years and loaded up with more and more debt in order to easily fudge growth.
Or is it that greedy property investors overpaid for that High St real estate in the mistaken belief they could go on levering out high rents (ultimately paid by High St shoppers) until the end of time? Assets are usually sold to reduce borrowings, not increase them. Mind you, I have long considered that any form of lease is a "debt", irrespective of how accountants may treat them.The game's moved on. Rents are too high which makes shop prices too high - and suddenly everyone's shopping online, direct from a warehouse in the middle of nowhere.
The devastation caused by Thomas Cook's collapse will no doubt be very wide ranging with hotels and airlines around the world simply not getting paid. I can't imagine it's very amusing to own a hotel in Morocco if your rooms suddenly go to "vacant" with last month's money still owing and no sign of next month's customers. In comparison, holidaymakers with an ATOL guarantee are away and laughing - even if it will be a bit inconvenient getting home.
Gassing Station | Finance | Top of Page | What's New | My Stuff