Easyjet Share Discussion Threads

[bmel] 29/9/2021 22:46

Well Dan......

that is great and your brand new, staight out of the box, friend ismzagz08 born this morning testifies.......

lol such a charlatan and fraud

[ismazgz08] 29/9/2021 22:03

Hi,
I want to ask a question and show my humble opinion about Easyjet.
Are the new shares tradable already in the market? I guess yes but I would like someone who went to the capital rise confirm please.
The peak price of this share in the last 12 months was 10.95£, in that moment there were 457M shares. Therefore total company value of 5billion. Just before covid it peaked at 15.5£ and there were 397M shares and a total co. value of 6.15billions.
Now there are 758M shares at a price today of 6.8£ with a total value of 5.13billion. Ok,there is still more than 30% gain in the best best scenario (before covid),but are we in the best possible scenario? I doubt it. In the other hand, the co. has reduced the cash burnt to 38M per week (you can read in "right issue"). It means the 1.2billion from the capital rise will be burnt in 6months.
The company have had £350M average profit in the last years, it means the value now is more than 14times profit.
For all these reason I am short in Easyjet. If anyone see some mistake in my calculations I will appreciate any corrections and opinions which stand against.

[beaubleep] 29/9/2021 18:36

Thanks Kinwah

[danvandan] 29/9/2021 17:16

By your standards, maybe, but I type a lot quicker than you do. You're still not answering any of the views and facts that I've put forward on EZJ.

Ty hopan.

[bmel] 29/9/2021 16:58

No not the 1 today

The 35 since 23 September

As I said a considerable investment in time.

[monte1] 29/9/2021 16:16

I don’t have an issue with your postings DanVanDan. Not to say that I agree with the sentiment or much of the content mind.

[hopan] 29/9/2021 16:11

excellent analysis danvandan... thanks

[danvandan] 29/9/2021 16:00

You object to my one post today? No one is paying me. Who is paying you? Which facts in my post this afternoon are you arguing with? As I understand it, this is a free chatboard with room for positive and negative views. Would you prefer to only see positive views? Are you an EZJ shareholder? If you don't want to see my posts, you can filter me. Would you prefer that I were silent so that other people won't see my posts too? Btw, why do you think it's 'considerable time'?

[bmel] 29/9/2021 15:30

Who is paying you for the very considerable amount of time you spend posting here.

Given your negative outlook (fair enough), you are clearly not a holder.

[danvandan] 29/9/2021 12:59

joestalin; yes, many people will want winter sun, but a lot of those people will not want the hassle of testing and bureaucracy to get there, and the uncertainty of knowing whether they will be able to get back without quarantining. Customer volumes will be much lower than pre-covid for a long time.

Also, if you look at covid stats, cases and deaths are remaining stubbornly high here in the UK and elsewhere (especially the US) and these numbers will get worse as we go into winter. And it isn't just the actions of the UK which determine how difficult it is for customers to travel and return. Globally covid is still raging in a third wave. Other countries have their own entry/exit rules. Look at the foreign office's travel advice.

With the shareprice at 680 this morning, the market capitalisation (number of shares multiplied by shareprice) is 92% of the easyjet peak shareprice in January 2020 before covid hit. In other words, almost a full recovery in the shareprice. But has the company fully recovered? No, of course not. Not even close - we are years away from a return to dividend payments, assuming the company survives. Net debt is around £2bn (possibly much higher - results are due in a few weeks), even after this cash raise, because the business has been losing £40m a week for most of this year and will continue to be loss-making all the time that load factors remain low.

The EZJ shareprice has been artificially inflated during the rights issue, through excitement and a basic misunderstanding by investors on the value of the shares, plus the price support activities of the various financial institutions involved. If you think that EZJ will eventually recover, why not pick a moment much closer to that recovery? Right now, with high debt, low customer numbers and a pumped-up share price, the prospects for shares look very bad imv. I think the shareprice is likely to decline to below £5 in fairly short order. GLA.

[kinwah] 29/9/2021 12:49

The payment for lapsed rights is normally within 10 days. It is the same sort of timescale as the return of funds when you don't get your full allocation in an open offer with excess.

[kinwah] 29/9/2021 12:44

Beaubleep the rump was placed at 690p so your lapsed nil=paid rights are worth 280p less dealing expenses so let's say 275p each for cash.

[joestalin] 29/9/2021 12:39

People are going to want some winter sun, and people who "short" are not always right.

[ccsicemanandrew] 29/9/2021 10:34

It shows the share has been shorted since the covid crisis started. I see this being the bottom. And assuming the winter booster vaccine program is successful, then people are going to want to fly next year.Just my viewpoint

[beaubleep] 29/9/2021 09:55

Anyone know what price the lapsed rights price is and will this be paid 10 days after ? Currently showing £0 in my account.

[danvandan] 28/9/2021 17:17

Is that irony? Fifth most shorted share on the LSE. Smart money sees this going down.

[ccsicemanandrew] 28/9/2021 17:03

Only 5% of shares are shorted. Don't see any concern there.

[qantas] 28/9/2021 13:31

The problem with low yield airfares or loss leaders you are paying them to fly and no point in that.

Stelios should have stayed in charge.

Please do your own research as always.

[danvandan] 28/9/2021 10:17

This cash raise will enable EZJ to repay the £300 million of CCFF funding due on 18 November 2021. Broadly, it potentially puts EZJ back to the net debt position of 6 months ago; over £2 billion in debt.

[danvandan] 28/9/2021 10:08

A good outcome for almost everyone, so far, as long as you don't mind increasing your EZJ investment. The underwriters could potentially make an additional £58m if they manage to sell the unbought shares at 690p. 21 million shares about to be sold into the market.

If you're in profit, it might be a good idea to sell now ahead of the underwriters.

[danb45] 28/9/2021 09:23

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