Something will be happening with North America news on business sales. |
something happening? 7% up today. |
Just waiting for the North American news to drop regarding the disposals...from what I've heard and read and the book value of each business, the upside for shareholders at these current prices is incredible.Patience pays! |
Quite a reasonable deal in the end for the franchises. |
I bought back in today ....way oversold .. |
Monster buy |
Why is this news bad, surely this is positive? |
FirstGroup plc - Further rail agreements with UK Government
'FirstGroup plc (FirstGroup or the Group) is pleased to announce that the Department for Transport (DfT) has extended the emergency funding arrangements for the UK rail industry for the next six to 18 months.' |
In some form or another, yes, inevitable. |
Was this news expected? |
Strong finish in terms of volume and the positive news of late.What will happen when the North American mews lands especially if both parts are sold at a premium to book of which amounts to a value of over £2 per share... |
 update main points:-
Stronger than expected financial performance, with adjusted operating profit and cash from operations ahead of our expectations during the period, driven by better revenue recovery and strong cost control
Governments and our customers are extending the funding measures necessary to underpin our critical services in light of ongoing social distancing rules, the delayed start of in-person teaching by many of our school customers in North America and other effects of the coronavirus pandemic
The Group is now expecting to deliver a small adjusted operating profit for the seasonally weaker first half of the financial year, ahead of our expectations earlier this summer
c.£850m in committed undrawn liquidity has improved since April, in part reflecting positive cash from operations (and after debt financing costs)
Reiterating confidence in comfortably meeting covenants as at 30 September 2020; net debt: EBITDA on the basis relevant for the bank test is expected to be c.2 times (covenant requires less than 3.75 times)
It is not possible to predict with certainty the medium-term effects of the coronavirus pandemic on our business, however clarity is improving over time as we agree responses to the evolving situation with our customers and stakeholders
The Board is resolutely focused on executing the portfolio rationalisation strategy through divestment of the North American businesses and is encouraged by significant interest from potential buyers |
Good update and the statement of getting the best deal for its North American businesses in the best interest of its shareholders!I think it was an upbeat and positive announcement. |
What do people think of the update? |
News any day now on the IS bus disposal. |
At the time, Coast said that the North American operations, First Student and First Transit, are worth "notably more" than their book value of 100p per share, estimating a price of 165p for each. |
Several interested parties..U.S side of the business will now almost definitely be sold..looking at above £1.30 to £2 short term.
Hope this helps |
Value.Then please explain to us why so many funds and companies are interested In these parts of the first group business.Not everyone has a short term outlook... |
No investor worth their salt is investing in transportation services of any kind at this time. This recent manufactured rise on low volume is simply a transfer mechanism to ensure retail investors carry the risk of holding until the market stabilises. 20p is the target. |
You only need to look at the value of the businesses they are selling and you can see why the price equivalent per share is significant. Some interesting days and weeks ahead.https://www.firstgroupplc.com/~/media/Files/F/Firstgroup-Plc/reports-and-presentations/press-release/2020-winter-trading-update.pdf |
Looking to break 65p tomorrow!..
Then head towards £1.30-£2 level 4 target |
https://www.morningstar.co.uk/uk/news/AN_1599475005774543600/press-firstgroup-shares-surge-amid-reported-interest-in-us-businesses.aspx |
This is why I had an initial price target of £1.30 pre sale...post sale looks like we're headed over £2 pdq!! |
At the time, Coast said that the North American operations, First Student and First Transit, are worth “notably more” than their book value of 100p per share, estimating a price of 165p for each. |
I think surged is a bit strong - it is still under 50p. |
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