Aa Share Discussion Threads

[utsushi] 16/2/2018 07:52

jonwig,

IC are often either wrong or late, on this occasion they are late, the stock has been a sell for quite some time since the AA assumed onerous levels of debt, even I was late in my post 75, 20/8/2017 when I advised selling at around the 170p-180p levels.

I had expected a recession to expose the balance sheet weakness, but in the end it was the failure of Carillion, and other outsourcers that did it.

[jonwig] 16/2/2018 07:00

IC says 'sell':

Activist investors have taken out short positions in at least 8.6 per cent of AA's shares. While the shares trade at just five times 2019 forecast earnings, they may be on to something. The business looks to be struggling against long-term decline, exacerbated by tactical foul-ups and tax changes, while its borrowings remain sky-high. Sell.

Just saying.

[srpactive] 15/2/2018 13:19

pb1

I will wait until nearer the 21st, I would
hope to see 113p again and hold, we shall see,
dyor all.

[pbutterworth1] 15/2/2018 12:09

I am in as from today. GLA.

[srpactive] 15/2/2018 11:22

Still watching and waiting, dyor.

[spob] 13/2/2018 20:26

Current assets minus Total Liabilities = Minus 3.34 Billion Pounds

[spob] 13/2/2018 20:19

Why anyone would conclude that buying shares in a massive liability (with a small company on the side) has now become cheaper is beyond me.

[minerve] 13/2/2018 19:59

From the latest trading update:

"The business has continued to generate healthy levels of cash. As a result of the refinancing in July 2017, we further reduced the cost of borrowings and extended the average maturity of our debt. ➡️ We have no near-term refinancing requirements ⬅️"

[srpactive] 13/2/2018 19:49

Post not applicable.

[nigelpm] 13/2/2018 18:18

You won't like me but I think it's headed down. Why?

hxxps://www.stockopedia.com/content/aa-who-rescues-the-4th-emergency-service-307988/

[timothyjones2010] 13/2/2018 18:04

PB welcome this board has been quiet for a while. It was short tracker that drew my attention as well. I bought in at 117, wish I waited to be honest, with the last week of markets up and down I thought I got it at a new low. After today's new low I'm thinking there are more lows to come

[pbutterworth1] 13/2/2018 16:18

Greetings all. Shorttracker has brought me here and this looks interesting and now undervalued. Not holding yet but will soon

[timothyjones2010] 13/2/2018 15:32

Your probably right at 110 - there is a lot of shorts in AA as well.With the announcement on the strategy in 21/02/18 I have a horrible feeling it's going to be a little woolly and won't be enough to entice investors which then takes us to 17/04/18 final results day - that's plenty of time for the share price to fall further. I'm also not sure if there are enough positives in this company anyway

[srpactive] 13/2/2018 14:57

T

Yes I am just following myself until the
21st, not jumping in yet as I feel it could test 110p
on a bad day.

[timothyjones2010] 13/2/2018 13:08

I bought in at 117, convinced this had bottomed. Last Friday and yesterday saw it sit around 120 but looks like it's going to drop again. I read a couple of articles and after reading brokers forecasts suggesting the dividend would not be dropped but halved. I thought it's worth a buy - fingers crossed share price doesn't fall further

[srpactive] 13/2/2018 11:10

So the important date is 21 Feb 2018, I feel
it will remain weak until then, dyor.

[srpactive] 10/2/2018 10:50

s44

I was just looking into that and was asking myself the
same question, debt and an ex growth in some parts
of the business.

I am not holding yet, but looking, dyor.

[shah44] 09/2/2018 18:20

I don't understand what has fundamentally changed between now and August when shares were over £2?

[bookbroker] 09/2/2018 16:21

This’ll soon be worth less than Green Flag!

[timothyjones2010] 09/2/2018 16:19

Shorts going in for the kill now

[minerve] 09/2/2018 15:23

Lower and lower she goes.

[minerve] 08/2/2018 12:56

Nothing really of significance in the update.

17th April 2018 for the results! Terrible! I thought they were looking to improve corporate governance and reporting here but obviously not or only where it suits them!

[7kiwi] 07/2/2018 22:31

Well consider this

Driverless cars coupled with electric drive trains are likely much more reliable than internal combustion engines. This will put pressure on breakdown revenues.

Driverless cars combined with Uber type technology means many fewer people will own cars, putting pressure on breakdown and motor insurance revenues. These driverless fleets likely to be insured by large underwriters, not personal lines brokers like the AA.

With driverless cars why would youngsters even bother to learn to drive. This puts pressure on driving school.

So the long term cash flows are at the very least at risk. Not good with such a big debt pile.