Easyjet Share Discussion Threads

[hornetnest] 12/11/2021 18:22

@timeforcommonsense; you were touting goldman sachs as an investor; the RNS this afternoon shows Goldman selling down from over 5% to 1.5% and the big trade volume today suggests either they or another insti has sold out of easyjet today.

Things seem to be turning from over-optimism back to reality for the shareprice. Even £4 looks like an expensive market cap at over £3bn. If easyjet were making £200m that would give them a price/earnings ratio of about 15, but I don't think they're even making that. DYOR.

[rocketblast] 12/11/2021 10:05

Ezj damaging climate change polluting the planet doesn't help. Maybe they need Hot Air Balloons like the share price. Too Risky at these levels… Down down and below 500p soon.

[rocketblast] 12/11/2021 10:02

EZJ is a DISASTER WAITING TO HAPPEN not driving sales as summer was weak. Looking like 600p will be tested with the next support level at 500p. Some say 450p as the next period proves very difficult with reduced revenue. Too RISKY and 500p looks more likely…

[porsche1945] 12/11/2021 09:39

Where’s that special needs utter fxxking moron Tlobs??

[porsche1945] 12/11/2021 09:39

A better play for an underpriced carrier is Lufthansa, the German economy twice the size of U.K. without the brexit fiasco and the worst government in the civilised world. They have short and long haul and the German government protect them to a degree, they could bounce hard, but buy next spring. Why would you hold an airline over the winter? Netherlands and Austria back in lockdown, U.K. with its wheezing fat unhealthy population and sxxt weather bound to be back in lockdown by xmas or just after, its just all risk, swerve it, buy back in next Spring when people have the usual ( soon to be misplaced ) hope that airlines will do better, and trade it, maybe from as low as 470/480 back up maybe to high 7’s. That could be a worthwhile trade. Still think using the Jets ETF best way to play airlines, USD protection ( sterling going down the toilet again since bank of E fumbled it a week ago ) and no stock specific risk.

[time for common sense] 11/11/2021 07:57

You are incorrect. BoA was reducing its shares to nearly 0 two weeks ago but now have bought again. Keep shorting.

[danvandan] 10/11/2021 15:31

Bank of America have been trading EZJ if the RNSs are to be taken at face value, and they reduced their position to practically zero a week or so ago. The RNS showing 'latest' position applies to last week; you can be sure they've been selling this week.

We're at a key 'support' level now; if we break below 618p, the shareprice could go into freefall.

A number of factors are weighing on the shareprice:
1. New EU/Brexit crisis with the prospect of the UK Govt's article 16 being invoked and a retaliatory threat of the annulment of the brexit deal with the EU occurring.

2. Rising covid infections and deaths across Europe, meaning that travel restrictions will remain in place or become more severe again, plus a reluctance on people generally to travel - who wants to visit Spain and walk around in a facemask all day? It's not the carefree place it used to be. Some people will do anything for a bit of sun, but many others will consider it too much trouble, especially with third jabs becoming part of the new travel requirements.

3. Rising costs; oil price is hitting EZJ along with wage inflation and airport costs.

4. Loss of business travellers; some will resume meetings abroad but a big part of this market has moved online to work digitally. Everyone is a lot more comfortable with online meetings now.

5. Debt; EZJ indebtedness is likely to be well over £2bn in loans and lease obligations and the business may still be running at a loss.

6. High shareprice; there are now twice as many shares as in 2019, so £6.30 is the new £12.60, about 20% down on the peak price of £15 back in Jan 2020 BEFORE covid hit, when EZJ paid dividends and had only small debt. So now we have a market cap of £4.9bn for a company that has massive debt, low earnings (or possible ongoing losses), rising costs, in a permanently smaller market.

7. All the good news is over. US market is open. But there's plenty of potential for yet more bad news.

8. No dividends for years to come until the debt is down to a manageable level. A p/e of 18 might have been ok for EZJ when it was a dividend payer, but not as a risk-ridden carrier. Aviation isn't like digital business (constantly expanding). EZJ's business is in a mature market without the potential for exponential growth. This share price has to come down to a more realistic level in line with its future earning potential.

My view is that this has a lot further to fall, probably to around £4 and possibly lower.

[joestalin] 08/11/2021 17:57

Two points:-

a) I have had the booster jab
b) You mean "who cannot stand the sight of needles??"

[justin1117] 07/11/2021 18:21

Or get the booster and travel the world

[joestalin] 07/11/2021 15:48

"if you have not had the Booster jab , you will not able to travel !"

I recommend the Isle of Wight for your holidays, if you live up north - and the highlands if you live in the south.

[chiefbrody] 07/11/2021 15:24

All about the money.

[m1k3y1] 07/11/2021 11:20

it seems they are now suggesting that if you have not had the Booster jab , you will not able to travel !

It is becoming ridiculous now. What happens 6 months after you have had the Booster??? do you then need a 4th jab .......


Time to move on.

[chiefbrody] 07/11/2021 10:51

£8-9 quid next year on condition on all stupid travel rules dropped. Since I expect our government to maintain its iron fist rule forevermore (or until they're booted out of office), I can't see the Shares going too much higher. Next summer we'll see if Europe continues with the crazy vaccine passport scheme. If we stay above 6 quid all winter I'll be amazed (and delighted).

[joestalin] 07/11/2021 10:29

It will not recover until spring. I'm not expecting it to break £10 though.

[jmountain] 06/11/2021 22:35

Interesting rise on Friday. Market cap now just about 10% below the level it was at £15 a share when it reached a yearly high a few months before covid two years ago - twice as many shares in issue now after two rights issues. Has this business now fully recovered to a business with low debt and paying a dividend? I'm just wondering what the basis is for valuing easyjet currently.

[danvandan] 05/11/2021 10:54

A good piece by Pat on one of the other boards this morning (LSE, londonsoutheast, not london stock exchange):

"IAG's results confirm the outlook for easyjet today. IAG lost in this last quarter almost half a billion euros and commented that long haul was recovering faster than shorthaul.

There will be no fast recovery for easy. Only a long slog for many years trying to pay down the debt. The part which I find the most interesting is IAG's comment that there are 'early signs' of a recovery in business travel. My guess is that those 'early signs' are all the signs that there are ever going to be. The reduction in business travel, due to everyone getting comfortable with online meetings and managers seeing the massive savings on travel and accommodation, is going to be the crucial change which pulls a cornerstone from all airlines' profitability. There is no recognition so far from the industry that this is being faced up to. Airline management is in denial.

Tourism will return, there will be a surge, then a lull as it fades, and then a slow climb over a year or three back to pre-pandemic levels, but business travel will not return to anything like the same levels. As a result, easyjet's profits will be a fraction of past profits. A shareprice of even £4 will likely be miles higher than the profits can justify. A realistic price earnings ratio might see a share price below £2 eventually. But we have many stages of grief to get through before that happens. First step will be easy's own reporting at the end of this month. Buckle up for £4."

[alex1621] 01/11/2021 09:33

28 September 2021, so they are trading in the market now.

[longwell] 29/10/2021 08:53

What is the day the new shares hit the market ?