Easyjet Share Discussion Threads

[1224saj] 23/9/2021 10:05

Rookie, got a resolution this morning from II they agreed to allow me to exercise my rights to subscribe for the stock at 4.10. Would have preferred to have sold my rights at 2.49. Just have to wait and see now. Thank you again

[1224saj] 23/9/2021 08:19

Rookie, much appreciated response, very helpful, thank you

[rookieswingtrader2020] 23/9/2021 01:09

Genuinely worthless, or just "no longer in your control"?I am no expert but I think that I read somewhere (and I believe lightly touched upon on this board) that the underwriters (the banks underwriting the rights issue for EZJ) try to sell to the market as many as possible of the unexercised rights (or perhaps I mean the fully-paid-up versions, after the GBP 4.10 has been added to each right - I am not sure which). I think this is called "placing the rump".Maybe the original rights holder (you in this case) would then be allocated the relevant portion of the sale proceeds, pro-rata with the number of rights that you had had?I do not know and so I may be entirely wrong. If it is true, perhaps it helps the underwriters limit the amount of money that they themselves need to shell out, having presumably promised EZJ that they would take up any shares not taken by the market.If memory serves, Hargreaves Lansdown had I think told me that I had until 12:00pm on Thurs 23/09 to make my rights election. That is no longer applicable for me anyway as I sold entirely (my ordinaries and my rights) shortly before CoB on Tues 21/09.I suggest that you could research generally online, enquire with II or with others on this board how "placing the rump" works to see whether there is any truth to that tentative understanding of mine.

[danvandan] 23/9/2021 00:34

But a big thumbs down from the hedge funds - shorts are rising massively here again. EZJ is now the fifth most shorted share on LSE with 5.74% of shares being shorted and almost 1% of shares being shorted by the hedgies yesterday alone. The pros expect the shareprice to go down.

Squarepoint has dropped off the reportable tables because its short on EZJ reduced to 0.49%, which is just under the reportable limit of 0.5%, but Squarepoint is still short.

[danvandan] 23/9/2021 00:26

A mixed view here:
easyJet recovery likely to lag competitors with £1.2bn rights issue causing dilution, says UBS

[danvandan] 23/9/2021 00:22

The Motley Fools verdict:


All that said, in a world of recovery plays, is easyJet really a standout buy? Not for me. It strikes me as more of a value trap than an opportunity for significant returns. That’s why I see little reason to add it to my own portfolio. I may be wrong and it may be the one that gets away spectacularly – nobody knows at the moment.

[1224saj] 22/9/2021 20:05

Unbelievable, Interactive Investors closed the rights at close of market today, price 2.49. They accept that they are earlier than other platforms such as IG?? They then went on to say that my rights are now worthless.Any comments from this board would be appreciated. I have raised a formal complaint.

[1224saj] 22/9/2021 19:39

My rights have dropped off my II account, could see them at around 2.00pm? Any holders seeing the same on their account?

[crystal_balls] 22/9/2021 15:11

Wait I'll have a look! :0)

[joestalin] 22/9/2021 15:09

Yes, but not for a few months. Mid term is late October but it may be Xmas before we see some demand coming back.

[michelle74] 22/9/2021 10:24

Can we see £7 coming?

[ny boy] 21/9/2021 20:30

Best thing is to buy the travel sector and hold for 1-5 years, blue skies ahead next year onwards

[m1k3y1] 21/9/2021 20:29

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 20:26

I would take £8,50p but no less.

[m1k3y1] 21/9/2021 20:07

I think you'll see another bid before then.

[m1k3y1] 21/9/2021 19:02

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

[danvandan] 21/9/2021 18:51

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 18:43

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 18:39

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 18:36

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.