International Consolidat... Share Discussion Threads

[chiefbrody] 21/5/2018 15:08

Not read many numbers on NOR accounts so not sure how i feel about 1.3 billion squid.All i know is that it's still loss making.I'll let the market decide. If they're happy and the shares rise, i'm happy :-)

[neilrich] 21/5/2018 09:45

Very clever....Norwegian closed Friday down over 7% at 251 NOK, Today IAG are offering 340 NOK for every share.

Some are citing the U-TURN by IAG from what was being reported on Friday, however this is all part of the game. Walsh wants Norwegian and I think he is going to get it.

[m1k3y1] 21/5/2018 09:03

Norwegian Bid

The FT

[m1k3y1] 19/5/2018 14:22

Thanks neil, typo on my part !
They may be leasing the slots but it would appear at zero cost to them.
Not sure a bid for Thomas Cook would be a good idea but I do feel IAG needs to buy something at the moment.

Walsh will still be stinging after failing to secure Niki Air.

[neilrich] 19/5/2018 14:11

Thomas Cook are leasing the slots, not Thompsons. Perhaps IAG have been considering an offer for Thomas Cook Group, not impossible.

[m1k3y1] 19/5/2018 12:50

Have to agree neil.
What point in buying Norwegian just to give parts of it to your competition.

I also note in the previous article, that they say Thompsons have leased LGW slots from IAG , at no cost for two summers, so that IAG can preserve the slots obtained from Monarch.

If this is the case, another bad decision for me . Why would you pay for slots , so that your competitors can use them at zero cost ???

[neilrich] 19/5/2018 12:33

Tie up with Ryanair? Can't believe that's on the cards. Also, IAG only interested in the long haul, can't believe that.....IAG does short haul too.

[m1k3y1] 19/5/2018 10:06

IAG shareholders propose joint Norwegian bid with Ryanair
hxxps://newsroom.aviator.aero/iag-proposes-joint-norwegian-bid-with-ryanair/

[m1k3y1] 18/5/2018 15:50

Interesting reading neil, thank you.
I wonder if this is one of the reasons walsh is trying to acquire Norwegian.
he needs the aircraft.

[neilrich] 18/5/2018 15:28

IAG turned to Qatar Airways, its biggest shareholder, and Thomas Cook’s airline to help it fill the extra slots over the busy summer period as its seeks to embed its position at Gatwick, Britain’s second-biggest airport.

[m1k3y1] 15/5/2018 16:09

agree about overpaying chief.
Plenty of targets out there for IAG.

[chiefbrody] 15/5/2018 15:55

Not sure about pressure. Depends what the big shareholders (Qataris etc) think. If IAG are one of the leaders in the consolidation rounds, investors might be weary of a bad buy/overpaying etc.P/E roughly half of what the likes of EZJ have. Maybe thats just how its meant to be.

[m1k3y1] 15/5/2018 15:44

Thanks neil.

I think they will be under pressure to increase the divi.
It is the downside of having an increasing share price
Otherwise maintaining such a small divi will offer little to investors, which in turn, will keep the share price lower than it might otherwise be.
Unless of course that's what they want ???

[neilrich] 15/5/2018 15:40

Forward EPS is 111.96¢, the forecast dividend is 29.00¢, therefore dividend cover is 3.86.

EZJ has a dividend cover of 2, therefore IAG could potentially increase the dividend substantially.

[m1k3y1] 15/5/2018 15:33

chief
when you say Div nearly 4 x covered , is that based on a divi before the withholding tax is applied ?

[m1k3y1] 15/5/2018 14:12

it shows adjusted net debt at 30 September 2017 of £413 million has decreased by £175 million to £238 million.

[m1k3y1] 15/5/2018 14:10

Neil

I think this might help
hxxp://corporate.easyjet.com/~/media/Files/E/Easyjet/pdf/investors/results-centre/2018/easyjet-h1-2018-results.pdf

[neilrich] 15/5/2018 13:43

IAG adjusted net debt to EBITDAR was lower by 0.3 to 1.2 times as reported at Q1.

I find this interesting and have been attempting to find the same measure for other airlines.

I work in the industry, the company that I work has a ratio of at least 6.

[m1k3y1] 15/5/2018 13:37

Not sure how the debt level of EZJ compares to IAG but IAG maintains debt at a reasonably high level.
I don't think this is why it isn't moving atm.
I suspect it is more to do with the MM's and waiting to hear about Norwegian.

At the end of the day, it should be well in excess of 700 IMO and a year of share buybacks should act positively on the SP, long term.

[chiefbrody] 15/5/2018 13:10

Div nearly 4 x covered so could easily increase it significantly.Pay down more debt.Probably staying cash rich for further acquisitions.Makes 4 x the profit of EZJ yet only worth double.1 company in growth mode, the other treated like a boring utility.

[m1k3y1] 15/5/2018 12:54

Hi Chief

There is a problem with the divi of course, if the share price keeps increasing.
The higher the share price the lower the divi return.
So you are correct that there will be pressure on IAG to increase the divi, or provide another method to entice investors.

[chiefbrody] 15/5/2018 12:32

Just don't think the markets like IAG that much.Maybe they could bump the dividend a bit (lot). Pay a special div?