Easyjet Share Discussion Threads

[danb45] 28/9/2021 09:23

Why can't they just offer the remaining 7% to existing shareholders - I'd buy some !

[qantas] 28/9/2021 08:58

Budget airline easyJet said its rights issue to raise £1.2bn was 93% subscribed, leaving underwriters to find buyers for the remaining shares or pick up the tab themselves. EasyJet earlier this month unveiled plans to raise the cash via a 31-for-47 rights issue at 410p each, a deep discount of 36% on the airline's closing share price on September 8. Chief executive Johan Lundgren on Tuesday said the raising "will enable easyJet to strengthen its balance sheet and accelerate its post-Covid-19 recovery plan".

[hopan] 27/9/2021 20:48

Great & good quality analysis... Thanks Danvandan.

[joestalin] 27/9/2021 20:07

Pay date is the 28/09/21

IG should receive the new shares 1-5 business days after the pay date from our broker and this is when the rights are removed and Easyjet shares booked on clients’ accounts who elected to take up. Lapsed Rights proceeds are usually known 10 working days after deadline date and paid after pay date, if this is part of the event. An email will be sent when all bookings have been made.

[18bells] 27/9/2021 19:01

Any idea when the new issues with be issued?

[joestalin] 27/9/2021 18:35

I am back in the black - at over £7. I will see what happens next week.

[chiefbrody] 27/9/2021 14:14

£10 is the old £20. It nearly got there before. It could again

[danvandan] 27/9/2021 13:07

I don't understand why you say '£10 again'. We are already at more than £14 on the basis of the number of shares in issue back in January 2020. There are now twice as many shares. £7.09 x 2 is £14.18.

Regarding getting rid of Boris; rejoining the EU would be the real boost.

[chiefbrody] 27/9/2021 12:55

Negativity lol.I'm a long ish term holder but accept that the share price will be under pressure here.One day it might reach £10 again which will do me.The biggest danger is governments never rowing back on all the restrictions they have imposed on travel. EZJ will have a couple of boom years if (and its a big if) they do.Getting rid of Boris would be a boost here.

[danvandan] 27/9/2021 12:31

Steady with that negativity brody. According to the shareprice, EZJ has made an almost full recovery back to the Jan 2020 peak of 1500p (now twice as many shares in issue). Clearly the price has been pumped. The underwriters are getting paid £40m plus whatever they can scam on the share sales; they will have engineered support. If they've picked up 15% of unbought new shares, they could make a killing tomorrow on a 75% shareprice profit if the price holds today. After that though, it's back to the EZJ management promoting the share price .

What is not in dispute is the success of the rights issue. EZJ will have raised the money, for sure. But after losing £40m a week for the last six months, they will still have £2bn in debt and the enduring fall-out from covid.

[chiefbrody] 27/9/2021 11:35

Are all these zilllions of new 410p shared shares tradable yet?I'm assuming not yet given the share price strength.

[ny boy] 27/9/2021 09:49

Ignore the imaginary shorts lol

Savvy long term investors have been accumulating recently, taking advantage of attractive valuations

GLA

Travel sector..investors looking beyond current status and into summer ‘22 +

Dyor as usual

[cumnor] 25/9/2021 18:27

DVD-a bore-just wasted 30 seconds of my precious time perusing one sided garbage and filtered it.

[danvandan] 25/9/2021 13:31

Just in case you're wondering what the smart money makes of all this, it might be worth taking a quick look at shorttracker.

Of the 17 new positions reported to the FCA on Thursday, 5 of them were on EZJ (four funds increasing their short and one, Systematica, reducing slightly to disappear under the reportable limit, alongside Squarepoint). EZJ shorts went up almost a full 1 per cent, making it the 5th most shorted share on the LSE. However, Squarepoint and Systematica between them are holding shorts just under the reportable limit now of a combined 0.97%. If those were taken into account, EZJ would be the third most shorted share.

I hope everyone here can appreciate my posts today as facts and figures which indicate reality, in contrast to the optimistic puff coming from many posters here.

[danvandan] 25/9/2021 13:20

If you're wondering where some of these losses are coming from, remember the headwinds EZJ reported six months back and also take into consideration that fuel costs have risen dramatically since then:

Airline headline cost per seat increased by 148% at constant currency to £148.39 (H1 2020: £59.75). This increase in headline cost per seat was comprised of:
• A £3.85 decrease in airports, ground handling and other operating costs, driven by lower flying volumes
• A £24.96 increase in crew costs, driven by adverse volume productivity partially offset by use of furlough schemes
• A £33.60 increase in ownership costs, driven by reduced flying volumes and greater number of leased aircraft and additional debt facilities, partially offset by reduced maintenance-related depreciation
• A £18.55 increase in overheads and other income, driven by fixed costs and reduced flying volumes
• A £0.12 increase in navigation costs driven by an increased sector length, partially offset by a Eurocontrol rate reduction
• A £12.45 increase in maintenance costs, driven by reduced flying volumes offset by line maintenance benefits from insourcing and parked fleet
• A £2.81 increase in fuel costs, driven by increased effective price

[danvandan] 25/9/2021 13:17

These are the losses reported six months ago and the next set of results due in a few weeks time will probably be equally horrific:

OUR FINANCIAL RESULTS
Headline loss before tax increased from £193 million for the six months ended 31 March 2020 to £701 million for the six months ended 31 March 2021.

[danvandan] 25/9/2021 13:15

You are completely misrepresenting the situation milkey. EZJ had NET DEBT of over £2 BILLION six months ago. That balance has deteriorated further over the last six months because the business has only been flying a fraction of its pre-covid customers. Most of the current rights issue will likely be gobbled up immediately by EZJ's cash burn of £40m a WEEK since then - that's EZJ's own figure from slide 4 of the 'investor' presentation for the rights issue. 26 weeks x £40m is approximately ONE BILLION.

The rights issue cash merely puts EZJ back where it was in terms of debt six months ago. It would have been more honest of EZJ to say that it needs a rights issue to pay for its costs for the year so far. That would have been a less attractive story for the shareholders though. The timing of this is important - after the results are out, it would have been more difficult to launch this cash raise because the numbers are dire. Also, furlough payments end in a few days, so costs go up even more in redundancy payments and/or under-utilised staff.

[m1k3y1] 25/9/2021 12:04

With 3B in the bank, they have become very biddable.

[porsche1945] 25/9/2021 11:55

Quite right too, nothing wrong with making sxxt loads of money and getting off to a nice sunny tax haven to enjoy it rather than handing 73 pc over to U.K. government to pixx up the wall.
On another issue, the brexit self harmers must be loving their “ brexit dividend “ haha. They can sit around a single bar electric fire eating shixxy canned food and listening to the radio and fat Boris wheezing on, “ just like the war “, they will be in their element. U.K. terminal, as is the index as is Easyjet, do you really think this winter will be “ ok “ for easy, gradual sinking of the shares till next spring. I have called it bang on so far so take heed of the Don.

[chiefbrody] 24/9/2021 15:03

Yup. Most rich just want to get relentlessly richer and richer. I'd be on the fence here if I was him too.

[18bells] 24/9/2021 13:55

Maybe he wants to invest the money in something else ie property or new business? Just because from the outside one looks rich does not mean they stop making business decisions.

[1224saj] 24/9/2021 13:36

Chief, maybe Stellos has not done what he said he was going to do, why would you sell your rights at 1.65, it's not as if he needs the money?

[chiefbrody] 24/9/2021 13:32

Also look at Ryanair and Wizz Air. Massive share price performance. Even with monstrously intrusive restrictions in place. Easy in comparison is way behind (justifiable reasons obviously).

[chiefbrody] 24/9/2021 13:23

I'm amazed at the current share price too and I'd expect it to be much closer to the rights issue price any time soon. If this is anywhere near this price in another week or so I'll amazed. But give it a rest D. So much negativity. Day after day.