Jet2 Share Discussion Threads

[d3american] 07/10/2020 03:27

Long time owner, first post. Respect CT’s views and knowledge but agree with hardm and Tongosti, re: discounting. Jet2 competitors are either gone or weak, but Jet2 has bolstered their financial position and is taking market share. The pandemic will be dealt with, people will travel again and Jet2 trades at < 2.0x 2019 EBITDA. I expect them to beat 2019 with 2021; they are poised for an explosive 2021.

[hardm] 06/10/2020 22:05

Yes, I agree Tongosti. Investors look at potential and expectation rather than just current performance. In the case of Jet2:

Good news on airport testing/quarantine.
Good news on a vaccine by the end of the year.
Will 2021 be busy...yes, if a vaccine is available. Extra capacity will be brought in to cope.
Will Jet2 survive longer than Tui or Easyjet...yes is the thinking, and if either go bust then another share price rise is inevitable

[stevie wunderbar] 06/10/2020 21:29

“Announcement coming this week re airport testing for COVID.”

I did try to tell you all on 27th September.

[tongosti] 06/10/2020 20:42

Good hearing a sensible view. 100% on the same page pal - like I always say, markets proceed fundamentals.

Hence, the existing market action has a lot of folks confused.

PS. Re JET2 valuation being an impossible task (hence a lot of fundamental purists are on the sidelines) : yes it indeed it is but it's important to bear in mind that markets never move on "valuations" but rather on "perceptions about valuations". By way of an example (and yes I am aware it is a non-earning asset but just making a larger point) : an abstract painting which cost $100m 3years ago may sell now for $250m. Painting is the exact same - perception about its value has changed. Value VS Perception of Value is a big difference and a big topic which merits a completely separate discussion (and one which is way beyond the scope of this board). If DTG survives all this (and I think it will), then 800p will very likely prove to be a reasonable (not bargain mind you) price if one takes a 3 to 5 year view.

[hardm] 06/10/2020 20:30

Share price is rising on expectations of an announcement re: airport testing/reduced quarantine period. All airlines are up. It's not rocket science, investors see a way forward rather than a risk of business failure, so they're getting in at low prices. 1000 back in June was the result of the same reasoning.

[pjleeds] 06/10/2020 20:14

Airport testing comming

[tongosti] 06/10/2020 18:43

Markets are never wrong, own opinions are - Jesse Livermore

[scottish007] 06/10/2020 17:47

Strange world indeed CT

[castleford tiger] 06/10/2020 17:45

my daughter is holding some but they may be sold.
Her call
tiger

[festario] 06/10/2020 17:34

Indeed CT, it has the feel of a false market.I've suffered with those before.I'd be buying this at below 500p, but it's only worth a day trade at these levels, and a very careful one at that.

[castleford tiger] 06/10/2020 17:30

I tend to agree but as Tong points out its all false.

When the company was growing every month nobody would give it its fair value.

Now we have a business with no control over when it may start operating fully and a huge wage bill soon to be met by the company and the price rises to give a market cap of about half its peak.
We have no idea what cash burn is or the damage to its balance sheet.
We issued 20% more shares at 1/3rd of the peak price because the bank made us do so.
We sold off our transport division.
We borrowed or we will borrow several hundred million quid.
We cut the fleet size.
We laid off staff.
We cut the summer 21 program back to 2019 levels.
Summer 20 was a disaster and winter 20.21 could be the same.

The customer has NO idea when the Government might let them go on holiday.
The next 6 months will see cash pouring out of the company.

Now the charts and the tea leaves might say the shares will go to 10.00 and THEY MIGHT...................but in my opinion as a long term investor this looks too high.
Tiger

[scottish007] 06/10/2020 16:37

So Turkey gone and now Canaries put back until at least end October - share price rising.
Madness.

[senn1] 06/10/2020 16:35

Are the markets going to crater? feels like the rise is false imho

Biden win by the Looks of it ain't good for stocks unless you own a wind farm

[our haven] 06/10/2020 15:15

It is close!

[tongosti] 06/10/2020 14:09

Yes and good luck mate - scaling out in very volatile times and locking profits on the way up has always made a lot of sense to me. Enjoy the rally and hopefully we will see JET2 break the 800p (can't see that happening today but I hope I am wrong!) barrier soon. Cheers.

[under the radar] 06/10/2020 13:24

BOR breaking out of triangle now and it’s up 19.7%

465mb of light sweet crude
No debt
Own 100% of acreage
BOD have skin in the game
Quick payback time
Under $35 a barrel costs
Could be a oil rim below Darwin
$2.5m enough to last 2 years
Mkt cap £3m
Potential 1mb total sourounding Darwin
Huge prospects on our acreage
Fairway play

Great news today about PMO merger for all Falkland companies.

Well worth tucking a few away imho


ATB and GL whatever you decide

[emigna2002] 06/10/2020 13:16

They owe me for Virus affected hols. cancelled, been waiting for weeks now, rubbish!

Funny how the card payment went into their bank in seconds.

Always the same here payment taken immediately , credit takes months.

[our haven] 06/10/2020 12:56

Loving this rally and I will have to review my position if it breaks the 830 that you speak of. As you say, profit is only profit when it is in the bank. In these times of volatility I am having to be far more active as a long term investor.

[tongosti] 06/10/2020 12:50

I bet by the time the gloom is lifted, the usual suspects will all come back buying in droves and for all their buy low sell high predication they will buy much higher than existing levels. Nothing ever changes in this game. Good luck all holders

[tongosti] 06/10/2020 12:38

Thanks pal - will see as it's all only paper profit which means nada but odds are we're on our way for a 1000 retest. Love the fact they is a lot of doom and gloom on the sector - typical contrarian indicator and key ingredient of a potential strong move up.

[festario] 06/10/2020 12:28

Looks like a good call

[tongosti] 06/10/2020 11:53

JET2 going up like a champ ladies.

[tongostl] 06/10/2020 10:46

There should be a trading update very soon, that will no doubt sort your silly little chart trading theory out.

[tongosti] 06/10/2020 10:33

Agreed OH - next probable stop now is 830 and 1000 after that. It's my very strong belief (based on what the market is telling us not how I may or may not feel), that the path of least resistance for JET2 is North. If we're closing firmly in the upper third of the day's range today then I will be willing to leave my position running as I see further upside from existing levels in short order. Good luck.

[our haven] 06/10/2020 10:24

The economy has everything to do with stocks going forward and currently that is a bleak outlook.There will be many more losing stocks than winning ones post the virus and there is every chance Jet2 will be one of the latter IMO.