Firstgroup Share Discussion Threads

[captain stock] 09/10/2020 14:42

I totally agree, when it moves it will do so quickly. Market Cap is silly at the moment.4 billion just for the US side of the business. First Student operates 42,500 of the distinctive bright yellow school buses in the US and Canada. The First Transit division is one of the biggest providers of public transport across North America, used by 324m passengers each year, according to the company's website.FirstGroup today put its huge North American contract buses operations up for sale for around $4 billion after more than a year of pressure from an activist investor.

[roughandtumbleone] 09/10/2020 13:48

Worth noting, there's going to be a short squeeze as it's clear the shorters are starting to close, that's clear by the reaction and tick ups. When there's a strong day, especially over 50p you'll see everyone closing out and the gap up between the pre March drop will be filled.

[roughandtumbleone] 09/10/2020 13:46

I think peeps need to reread the reading update of the 15th September and it's clear and obvious why citi upgrade to a buy from a neutral. The sale of the North American business will have a very positive impact on the company and IMO the share price. The fact that cash generation is higher than expected is a sure sign when things improve further the company will see a significant rerate.DYOR but the green shoots of recovery are clearly there.

[captain stock] 08/10/2020 09:55

Would be nice to have another 10% today.

[joestalin] 07/10/2020 16:04

make that 10% up today. That does not look like a tree shake.

[knowing] 07/10/2020 15:30

CITIGROUP RAISES FIRSTGROUP TO 'BUY' ('NEUTRAL')

[roughandtumbleone] 07/10/2020 15:18

Something will be happening with North America news on business sales.

[joestalin] 07/10/2020 14:29

something happening? 7% up today.

[roughandtumbleone] 05/10/2020 08:19

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!

[bluepeter1] 23/9/2020 09:02

Quite a reasonable deal in the end for the franchises.

[ccr1958] 22/9/2020 17:17

I bought back in today ....way oversold ..

[a_2_b] 21/9/2020 12:03

Monster buy

[saadia110] 21/9/2020 11:24

Why is this news bad, surely this is positive?

[joestalin] 21/9/2020 09:01

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.'

[thamestrader] 21/9/2020 07:41

In some form or another, yes, inevitable.

[lasata] 21/9/2020 07:20

Was this news expected?

[roughandtumbleone] 16/9/2020 16:48

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...

[joestalin] 15/9/2020 11:25

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

[roughandtumbleone] 15/9/2020 08:18

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.

[lasata] 15/9/2020 07:43

What do people think of the update?

[imjustdandy] 10/9/2020 08:43

News any day now on the IS bus disposal.

[roughandtumbleone] 08/9/2020 08:15

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.

[sanks] 07/9/2020 22:38

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

[roughandtumbleone] 07/9/2020 21:08

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...

[valuetracker] 07/9/2020 20:34

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.