Easyjet Share Discussion Threads

[qantas] 18/9/2021 19:52

I knew Stelios would be mad about it.



Please do your own research as always.

[srpactive] 17/9/2021 21:12

Cannot knock parcels, I bought rmg at 150p the other year.

dyor

[m1k3y1] 17/9/2021 14:53

I think there will be further bids now.
Especially with EZJ having another 1.2B in cash.
It only makes it more attractive .

[srpactive] 17/9/2021 14:34

p

Stelios took his eye off the ball years ago, he should have sold like me
years ago, I originally bought in at 126p sold 1500p plus.

He should have too, he had chances, so really scarred now.

I reckon a move close to 660p hopefully later.

dyor

active

[m1k3y1] 17/9/2021 14:12

Well I could be wrong of course .
I have bought back in and I am just hoping that BoJo doesn't disappoint yet again.
He has a loooooong record of disappointing.

[srpactive] 17/9/2021 14:02

m

Thank you, strong buying into the close if you are correct.

dyor

active

[m1k3y1] 17/9/2021 13:27

No doubt it will be after the FTSE close.

[srpactive] 17/9/2021 13:02

What time is the decision of changing travel system?

tia

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[srpactive] 17/9/2021 11:52

Well we have had a little retrace as I mentioned earlier now
for the strong move higher hopefully.

dyor

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[rocketblast] 17/9/2021 10:08

EZJ too risky at this level. 500 support may be tested as Sumner is Over BUT COVID is not over. Can EZJ survive until next Summer???? I agree still Too Risky at this level. This is a Dead Cat Bounce…. Be careful!!

[danvandan] 17/9/2021 08:48

Well the chart looks like it's dead-catting. Possibly a combination of the expected bounce and the rumour of changes to the traffic-light system yesterday, and maybe even a little short squeeze yesterday. As of now, the shareprice gives a value to the old shares of about 740p, which is barely 5% below the price of the shares immediately prior to the RI announcement. I doubt that it's sustainable because there's a whole lot of tail-swallowing to be done between now and the completion date. I'll be surprised if it stays above 500p by the end of next week. GLA.

[srpactive] 17/9/2021 08:36

A little retrace before closing strongly I feel.

We shall see.

dyor

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[danvandan] 17/9/2021 08:32

Well, do ya punk?

[iandippie] 17/9/2021 08:13

Clearly you haven't watched the film! The line is "Do I feel lucky?".

[rookieswingtrader2020] 16/9/2021 18:24

For security, if my "overall break-even" is reached or exceeded before Thurs 23/09 (which seems to be exercise day) then I would be tempted to sell my rights and the ordinary stock effectively simultaneously, thereby exiting the whole trade, at least for the time being, with the possibility to trade again later. By "overall break-even" I mean the point at which the positive sale value of the rights equals the absolute value of the unrealised loss on my main trade. Put simply, there is no need to let an ongoing corporate action rob us of a good trade exit opportunity, if one materialises.But if that doesn't happen (and I therefore remain at an overall loss before Thurs 23/09), then I would likely exercise my rights, if for no other reason than to consolidate my trade's overall position. Then afterwards when the dust settles I could judge the position size and consider whether to cut some losses with a partial sale; or to deepen yet further to reduce the break-even; or just to hold, etc. I think those judgements would come more easily after exercise of the rights, due to the consolidation effect. PDYOR GLA

[phillis] 16/9/2021 14:54

Chaps
It really is quite simple
Take up your rights in full and your % share of the Company’s asset value remains the same
Anything less and your share will go down
This is not to say you can’t trade the rights and make a bit on the side and still end up with the same choice

[srpactive] 16/9/2021 14:40

A close above 600p would be quite positive, around 620p
would be super.

dyor

[joestalin] 15/9/2021 18:49

It all depends on how long that you think it will take the sector to recover.

This time next year, you could be kicking yourself, or congratulating yourself.

In the immortal words of Clint Eastwood - "are you feeling lucky?"

[gettingrichslow] 15/9/2021 17:47

Dan, agree with most of your post but no idea why you’d be surprised at investors letting their rights lapse? That’s what I’ve normally done in such situations on the basis that I’ve already decided how much I want to invest in a particular company so the fact that they’re tapping me for more won’t suddenly mean I decide to sink more into the same company. It’s the most rational course of action surely? And Stelios ‘not participating’ means he is doing exactly that too, not taking up his rights (and getting the cash payment for them instead).

[srpactive] 15/9/2021 14:33

Afternoon all.

Just bought in.

dyor

active

[danvandan] 15/9/2021 14:03

1224saj, you are correct; the share price currently gives the rights holders a profit on their new shares, but a loss on their old shares. As the price goes lower, the profit reduces. If it gets to 410p, it will be zero. If it goes below 410p (which has happened with rights issues before) shareholders will have a massive loss on their old shares AND a loss on their potential new shares. The new shares will be 'underwater' so to speak, before they have even been issued. At that point, potential buyers of ezj will be able to buy shares cheaper on the open market, than if they were existing shareholders buying 'rights issue' shares.

There is a possibility that this could occur. At that point, the rights issue can be described as having 'failed'. Very few, if any, existing shareholders would buy the rights issue shares, because they can buy them on the market for less. The underwriters will be compelled to pick up the lot. And then they will sell them as soon as they can show any profit. They might even sell them at a loss, accepting their fee for the rights issue as some compensation.

My guess is that the shareprice will remain a little over 410p until the deal is done and the new shares are issued. However, a great many shareholders will 'tail swallow' (sell some of their rights to new shares) and effectively not put money in, and the buyers of those rights are looking for a quick profit and will keep downward pressure on the price. Worst of all will be the holders who let their rights lapse; there is frequently a surprisingly high number of them. Stelios has apparently said that he is not 'participating'. I don't know what that means, but he has 15% of ezj? Regardless, the underwriters will almost inevitably pick up a large chunk of the new shares and then they will dispose of these on the market or to other parties who then sell into the market for a fast buck, creating very significant downward momentum for the shareprice.

I fully expect the shareprice to hit 410p and then dip below, depending on how unpopular the rights issue turns out to be.