Easyjet Share Discussion Threads

[m1k3y1] 21/9/2021 19:29

Of course anyone who wants the airline, could wait it out and hope that EZJ burns through all of it's funds and goes bust, so they can pick up the pieces.

It's a high risk strategy and I don't think this will happen.
Others may disagree.

[joestalin] 21/9/2021 19:26

I would take £8,50p but no less.

[m1k3y1] 21/9/2021 19:07

I think you'll see another bid before then.

[m1k3y1] 21/9/2021 18:02

I guess you don't think anyone will bid for them then ?

[danvandan] 21/9/2021 17:51

The hedge funds certainly do, for the moment. It's more about the rights issue just now. The underwriters will put the rump placing on the market (the unbought new shares) and since there's a significant profit for the moment, they will sell it off quick. It might be a big placing; we will see on the 27th. Also buyers of the rights will be selling off for a quick profit. There's bound to be a lot of downward pressure on the shareprice from here on.

Medium term, yes, the borders opening up is good news. But the long-term damage has yet to be quantified. It will take a while for EZJ to realise that their market is never coming back, so they'll be running half-empty planes for sometime, and taking losses, then there'll be the harder rationalisation, where the business becomes smaller and less profitable and dividends are pushed further and further into the future.

There's a reason Warren Buffet sold out of all the airlines.

[m1k3y1] 21/9/2021 17:43

Dan......so you think with borders opening up and international travel resuming, that the share price is going to go down ???

[danvandan] 21/9/2021 17:39

Basically three more years of losses for aviation due to flying low numbers. People forget it's not just the UK making the rules. All those business travellers will NOT BE COMING BACK. Zoom has taken all of that away, probably forever.

Brilliant finish for the shareprice, but it's not sustainable. Shorts are going up fast, now almost 5% with another 0.25% short added yesterday by Guevoura.

[danvandan] 21/9/2021 17:36

Interesting article from the London Evening Standard on easyjet and travel rules.



EasyJet claims UK has ‘missed the boat’ on relaxation of travel rules.

EasyJet chief commercial officer Sophie Dekkers said the airline was “surprised and delighted” by the change in policy, but said it was made too late.

She told the Commons’ Transport Select Committee: “In terms of sales over the weekend, they did pick up but not to the extent that we’ve seen in previous announcements because we’ve missed the summer.

Mr Holland-Kaye [Heathrow chief exec] told MPs “the demand is there today” for people to travel, but passenger numbers are being restricted by “controls that governments around the world have put in place”.

He does not expect this to be “fully changed until the world has been vaccinated”, leading him to predict that passenger levels will not return to what they were before the coronavirus pandemic until 2024.

[joestalin] 21/9/2021 17:21

It depends what the offer is.

They turned down one already.

[m1k3y1] 21/9/2021 16:11

After the RI EZJ should have circa 3Bin the bank I understand.
If they don't spend it quickly, I can see them becoming VERY attractive for others to make an offer .
Going to be difficult to stay independent.

[gerhux] 21/9/2021 14:12

I'm undecided what to do about the rights issue. Typically does the share price post a rights issue behave in a particular way or is it dependent on the individual company?

[1224saj] 21/9/2021 10:00

Same happening over on IAG

[rookieswingtrader2020] 21/9/2021 09:55

Price growth from approx 1045 BST onwards - support starting to build, or mere Fibonacci retracement?

[time for common sense] 21/9/2021 09:51

Was it just some profit taken.

[michelle74] 21/9/2021 08:58

Is this the exit starting

[rookieswingtrader2020] 21/9/2021 07:28

Can anyone help me understand please: Why exercise the rights at all? Can a very similar commercial effect not be achieved by selling the rights and immediately using the proceeds, coupled with additional cash, to buy the relevant number of new shares in the open market, if desired, thereby obtaining them right away?The benefit of the latter is that there is no (I think days-long) delay between exercise of the rights and receipt of the new shares, during which one seemingly has no control over that element of the trade. Perhaps those with CFD accounts (not me) could hedge with a short if they wanted the effect of selling shares not yet received during that delay.Maybe more than 410 GBX would separate the rights price from the normal share price (and maybe that would be justified due to the need for the rights buyer (exerciser) to suffer the risks associated with the delay).Maybe there is a difference in transaction costs eg SDRT? Even if so, that would hardly seem to justify the risk of being unable to sell shares not yet in your possession if you think that the price is peaking after exercise and before receipt.In a sense it seems like rights exercise is a bit like buying a "future" based on a bet of what the share price will be days later, because the shares (I believe) take days to appear after exercise. Thanks in advance for any thoughts. DYOR GLA.

[glavey] 21/9/2021 05:48

"...might've got a third more..."

Tooooo many.

[danvandan] 20/9/2021 22:25

Granville, I hope you've still got those rights, cos right now they're worth £2.43 for each new share. This MIGHT be the moment to sell them. The excitement for transatlantic flights just added a bit of momentum, but possibly it's all over now and people will cash-in or tail-swallow from here on. My guess is £5.50 by this Friday. Stelios might've got a third more for his rights if he'd sold 'em today. Timing; so difficult to get it right...

As you might have worked out by now, selling the rights means you can take the profit on the new shares now, without having to find the funds to actually buy them. GLA

[granville23] 20/9/2021 10:36

Ok thanks that's a bit clearer now

[1224saj] 20/9/2021 10:25

Granville, your rights are worth currently 2.22 down from 2.35 this morning if you sell. To calculate the number of rights you have is simple divide the number of shares you had before the 8th Sept by 47 then multiply by 31. For example you may have 1000 rights worth £2,222 if you sold today. However, using the above example, you could buy 1000 new shares at 4.10, which would cost 6.32 to anybody without rights. You would now have to find £4100 to buy the new shares.

[granville23] 20/9/2021 09:50

So my thinking is correct, they are now 220

[joestalin] 20/9/2021 09:30

If you do not take up the rights issue, you are selling the rights to someone else.

You will get something for doing so. How much remains to be seen.


If you take up the rights isue, you will pay £4.10 per share.