International Consolidat... Share Discussion Threads

[milliecusto] 28/1/2020 21:26

Now more cases in Germany

[nw99] 28/1/2020 20:19

Foreign Office warns against 'all but essential travel' to China

[elpirata] 28/1/2020 18:08

UBS yesterday>

As for coronavirus, though, not all of the European carriers may suffer equally, a team of UBS analysts led by Jarrod Castle wrote in a note.

Air France KLM (ticker: AF) and Deutsche Lufthansa (LHA) fell hard on the Stoxx Europe 600, down 6% and 4%, respectively by the afternoon. Of all European airlines UBS covered, those two companies have the highest exposure to China (based on a percentage of 2019 capacity)—around 7% in both cases, Castle wrote.

Air France KLM has the biggest exposure to the Asia region at 21% of capacity. International Airlines Group (IAG), which operates British Airways, Iberia, and other air carriers, has the lowest of the European airlines that service Asia at 8%, said Castle.

“This is likely part of the reason why IAG’s share price has been relatively unaffected by China related events, but Air France-KLM and Lufthansa have seen greater share price falls year-to-date,” the analyst said.

Low-cost carriers such as Ryanair (RYAAY) and easyJet (EZJ) have no direct exposure to Asia, UBS said. Still, these companies are falling along with the rest of the sector on Monday.

Castle is sticking to Buy ratings for Lufthansa, IAG and Ryanair, due in part to “attractive valuations.” Sell-rated easyJet remains one of the best of breeds low-cost operators, but valuation is stretched, he said.

[nw99] 28/1/2020 17:34

analyst Ken Herbert at Canaccord Genuity said that while the current coronavirus outbreak is still in the very early stages, the risk to worldwide air travel and the aerospace sector is "substantial," as the eventual impact could be worse than previous pandemics this millennium based on the inital outbreak

[nw99] 28/1/2020 17:33

Asian Cathay , Japan Jal , ANA ,USA airlines

[farrugia] 28/1/2020 17:02

what other listed airlines have a lot of exposure to china? my thoughts is that if this really spreads to Europe much of the airline traffic could be stopped to limit the pandemic.

[montyhedge] 28/1/2020 11:37

I hope his not a plonker, Rodders.

[wilc42] 28/1/2020 10:57

Brave. But you've got to step back in as some point. I'm personally thinking 565. Best of luck. He who dares wins, rodders

[montyhedge] 28/1/2020 10:46

8% exposure to the Far East. Remember SARS airlines got slaughtered, now IAG more flights to far east than 2003.If it spreads brown stuff to hit the fan.Easyjet and Ryanair it does not really effect.

[elpirata] 28/1/2020 10:45

thats todays headline - flu in Hull!

[cafc69] 28/1/2020 10:42

The flu kills more people in the uk every year.

[elpirata] 28/1/2020 10:39

iag has minimal exposure to china in terms of turnover & coronavirus is downgraded on the front page news headlines today, share price panic over imo.

ps on the subject of travel, todays saga trading statement is worth a look, pbt £105>£120m & 8%+ final divi tbc in may.

[montyhedge] 28/1/2020 10:31

Should have waited, this Coronavirus really going to hit airlines like IAG, Easyjet and Ryanair will be ok.510p my target if it spreads.

[elpirata] 28/1/2020 09:42

just bought back in, 650 target, stop set at 559

[nw99] 28/1/2020 09:33

550 is my target

[montyhedge] 28/1/2020 09:23

510p is my target.

[nw99] 28/1/2020 09:16

Not a buy yet

[montyhedge] 28/1/2020 08:26

Looks like a dead cat bounce, down trend is still there.

[cyberian] 27/1/2020 14:06

monty...that was confirmed by Citi the US bank as correct a few days ago from my recollection. Let's hope the virus issue will be resolved asap.

[montyhedge] 27/1/2020 11:58

I think IAG exposure to Far East was 8% with sars, it may be more now. Not sure.

[wilc42] 27/1/2020 11:41

Wow. Big hit. What was the % drop on SARS. Could apply same rule of Thumb here.

[fjgooner] 27/1/2020 11:41

montyhedge yaps: "Oil, travel, airlines, mining, avoid, tech ok."

So how are your tech stocks then, you genius expert, you?

Let's have a quick check on the stocks that you're currently ramping, shall we?

Micro Focus - MCRO - 1073.60 DOWN 3.75%

Cambridge - COG - 30.36 DOWN 8.02%

[montyhedge] 27/1/2020 11:36

Dow looking ugly implied open down 400 points.

[younasm] 27/1/2020 11:10

I have started buying call options at these levels - 582-585p. As long as we get another 50-80p move within 3-6 weeks, I can add/close my positions

[montyhedge] 27/1/2020 10:39

I know everyone thinks 550p buy, but if things get ugly 510p.