International Consolidat... Share Discussion Threads

[nw99] 20/3/2020 07:01

Topped as a buy in Moneyweek

[waikenchan] 19/3/2020 23:45

I think 50p is a tad speculative. However never say never.

[eentweedrie] 19/3/2020 23:31

This will probably make a good investment at about 50p

[waikenchan] 19/3/2020 23:31

History tends to repeat themselves.

These loans will come with negative conditions. It's the proverbial poisoned chalice.

[sr2day] 19/3/2020 23:23

mik, i don,t think you have been in this game long and if you do not learn to listen and analyse the present situation properly and act accordingly you will not make any progress and risk losing your investment.

[m1k3y1] 19/3/2020 23:11

logan......this is different to the Banks. We will have to wait and see what is offered , who accepts any help and how this affects their share price

If this mess is substantively resolved in a few months, the airlines might not need as much as initially indicated.

At the moment , it is all guesswork and speculation.

[loganair] 19/3/2020 23:01

If any of the UK airlines takes government money can easily see their share price being 50% lower then it currently is.

Remember the banks, Lloyds high before the 2008 financial crises around £12 and since government bail out hasn't even managed to get above £1 and as for RBS in old money was £55 pre-financial crises and government bail out and since has barely been able to get above £3.

[m1k3y1] 19/3/2020 22:53

"Under the deal, the government - which owns 52 per cent of Air New Zealand - will extend up to NZ$900 million of credit to the airline over the next two years."

[sr2day] 19/3/2020 22:47

All will depend how long we take to find a vaccine.in the meantime all the world can do,like China try to minimise the damage.in the meantime those sectors that are primarily affected like the airlines,hotels,cruises will suffer considerably.this situation is unprecedented and will bring austerity if it last for more than three months.the human race has come up against different type of enemies in the past and has always survived.so we have to stay positive and as calm as possible.most of all we have to show solidarity worldwide.

[loganair] 19/3/2020 22:40

Air New Zealand takes government bail out and share price drops 43% in first couple of hours of trading.

[waikenchan] 19/3/2020 22:26

hxxps://news.sky.com/story/ministers-close-in-on-multi-billion-pound-airline-bailout-plan-11960528

[dround87] 19/3/2020 22:22

Far more will fall into the overreaction category believe me! I've tried to pick a few of them for my recovery portfolio which is precisely why I'm building a stake here.

[babp] 19/3/2020 22:17

@dround87

Yes I get it but I feel only next two months will decide. I used Hargreaves and see that HSBC has given buy rating with a target of £4.75 and many names have given buy calls from 1 March to 18 March. Only time will tell as you say.

[dround87] 19/3/2020 22:14

Yeah I get it. Honestly there's so many companies out there priced to go bust and this is one of them. Hindsight will show that some were correctly priced and some were an overreaction. I reckon as far as airlines go this is as safe as it gets. But time will tell.

[babp] 19/3/2020 22:10

I don’t see much of a choice except hold on for long time. It’s painful to take a loss of 60% and use the funds to park elsewhere.

Appreciate your comments as all these give insight.

[dround87] 19/3/2020 22:10

Good luck. I was in a similar position a while back when I first started. It's not fun. I got a break when the company made some smart aquisitions with the big pile of cash it was sat on for 3 years! It was a long wait. I would say if you have spare cash to invest and if you're set on holding this then leave it alone and go for the ftse tracker with your remaining cash. That way you have a much safer bet to prevent complete capital loss.

[dround87] 19/3/2020 21:59

You know what my maths are off. Sorry that's not right. It would take longer to recover your losses. Depending on whether you were prepared to invest more heavily over the course of the crisis and it's consequences and the prices you were able to buy at.

[babp] 19/3/2020 21:54

@dround87

Cheers mate, think just been very unlucky with timing of my entry in the market. Wish I bought BP more for same amount or may be bought few other companies.

Another interesting point is other big airlines have fallen 40-50% but IAG has nearly lost 70% which is not right to me. It has cash, great brand , networks all over etc but this monstrous virus is just brutal to halt business of this scale!
I will hold onto it now.

[dround87] 19/3/2020 21:34

Yeah pity. I don't want to scare you off but having your eggs all in one basket is clearly very dangerous. Whether you should sell now is a very difficult call to make. It's down so much that you've likley lost a lot of money and diversification at this point could hurt if you're not careful. But then again in all honesty it could hurt even worse if you hold. You could lose it all. Long term I'm about 75 percent confident here. I personally reckon it'll be fine but saying there's significant risk is putting it mildly. There's so much certainty from a lot of posters but the truth is no one knows how long this will last, how much it's going to cost and where we're headed in the aftermath. I would say pull it and stick it in a low cost FTSE100 tracker like VUKE. Feed it through whatever lies ahead and compound the dividend. You will get your money back at some point. Possibly within a couple of years. After you have I would move it into something more diversified like life strategy unless you want to put time and effort into learning how to do this properly. The stock market chews up and spits out casual investors as you're unfortunate enough to have learnt first hand. Good luck.

[babp] 19/3/2020 20:47

@careful thanks a lot for honest views. I chased it down, thinking it would rise and got worse! There is so much panic as of world is ending! I agree it’s quite a difficult call perhaps I should have bought more of BP. Stock market is too dangerous but learned a very expensive lesson in market! I will hold on to them now as not much choice.

[gaffer73] 19/3/2020 20:37

No worries, I think careful has made some very valid points too.

[careful] 19/3/2020 20:29

If you have some cash left and do not need to sell your shares then I would hang on for the long term.

Shares are long term assets and it sensible to forget about them for a while.
You have been very unlucky with your timing, not your fault, what has happened is exceptional.

You must accept that IAG could go bankrupt if the public are as terrified and panicked as they are right now.
They will need a bailout and that may weaken the company even more.

In my opinion there are better risks than IAG in the market. Buy a small quantity of several different shares, there are so many bargains out there.

Do not get obsessed by AIG, do not chase them down. But do not sell them either.
Spread your risk.

[babp] 19/3/2020 20:29

@Gaffer73 nice one, thanks I want to buy more and does not matter if I lose now.

Appreciate your views

[m1k3y1] 19/3/2020 20:28

IAG offers PAX aircraft for cargo charter

[gaffer73] 19/3/2020 20:23

The question you need to ask yourself is, do you think IAG will go bust? If you think not, and you don't need the money, I would say another 50p on top of your loss won't make any difference. With 9b reserves IAG are in a better position than other airlines.