Tuesday 20 February 2018 | ShareProphets: The one stop source for breaking news, expert analysis, and podcasts on fast-moving AIM and LSE listed shares
The January 2018 edition of the UK Investor Magazine is now live: Nine tips, defending Churchill, and not missing Nigel Wray
Despite the multitude of cheesy ads on the TV begging us to book a holiday I use this regular slot for yet another confession: I have never been on a package holiday. To be honest, I doubt if I ever will...but fortunately the UK economy rolls on consumption preferences far different than my own. Which brings us to the recent comments by both Thomas Cook (TCG) and TUI (TUI), both big players in the travel market.
Hello Share Crushers. I’ve long held that travel operators are not an ideal choice for investment these days. This is based on the view that as people become more internet savvy, they see the economies of arranging their own holidays - thus eliminating the middle man. This makes it very hard to attain growth, and that’s what really drives share prices. And there are now other concerns on the horizon.
Bit of a Super Thursday in terms of the magnitude of results but the one that really caught my attention was Thomas Cook (TCG). 19%+ share price falls – at the time of writing - tend to do this. Of course the reason for this plunge off the diving board is the profits woopsie slipped in a few paragraphs into today’s first half update. And the reason? In a word: ‘Turkey’.
Recent months have proved to be intriguing as far as Thomas Cook (TCG) shares have been concerned on many levels, the technicals, the fundamentals and as far as market sentiment have been concerned.
Sadly Thomas Cook (TCG) did not as I had hoped serve up a profits warning today. Its shares are broadly unchanged at 122p but its trading statement is far from inspiring and the City knives are still out for PR obsessed CEO Harriet Green. She cannot afford to slip.
Andrew Monk heads up broker VSA Resources but in a former life was an airlines expert. He even set up one. It went tits up. But he knows how this industry operates and his views on THomas Cook (TCG) are clear. He noted this morning.
I have predicted it before but predict again – the imminent trading statement from Thomas Cook (TCG) will be a profits warning. Of that I am certain. My question is whether its self-important and image obsessed CEO Harriet Green gets a one way ticket out of the building the same day.
A former leading transport analyst who still retains a very high City profile has this morning launched a blistering attack on Harriet Green the self-publicity addicted CEO of Thomas Cook (TCG). Is this just sexism in the City or is this fair comment. Read on and judge for yourself. Our man writes:
Shares of Thomas Cook (TCG) have stood out in several key ways over the past year, and not only because this company effectively came back from the dead and would have annihilated a multitude of bear traders in the process.
Shares of Thomas Cook (TCG) have been and remain one of the charting phenomena of 2013 to date. They have soared from below 50p to 153p since January. There is more to come.
I offer no comment on this weekly feature it is a simple matter of observation. The two tables below show the most active discussions on the ADVFN and iii Bulletin Boards as of a Thursday morning.
The problem with buying into Thomas Cook (TCG) shares in the recent past is that despite the way that the recovery on the daily chart looked extremely appealing, the £1.6 billion debt pile was significantly more than the market capitalisation of the group.
At one stage in the recent past it did appear that tour operator Thomas Cook (TCG) may be heading for that Great Package Holiday in the sky, with the share price touching as low as 13p at worst.
Given that I knew the call on tour operator Thomas Cook (TCG) might be around for quite a while I rather gingerly suggested in my book written in November, Lessons From The Financial Markets For 2013 that above 25p the stock could be headed for 35p by the end of the first quarter of this year.
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