IAG worth a gamble?

Do you think this is worth a gamble after equity raise?

The price is tempting but the wait isn’t.
Pan Am airways went before, what’s saying this couldn’t.

For a bit of fun, you could put a little bet on, but I wouldn’t be putting on anymore than 3 figures. :upside_down_face: Who knows …

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That’s what I was thinking, maybe a couple hundred. Just out of interest what is the best time to buy, before the equity raise or after, like general rule of thumb.

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Normally the saying: “buy the rumor, sell the news” applies.

I’ve seen it so many times where buying just before some news gets announced is the best time, then once it comes through, sell on the news. Sometimes you end up cutting your profits early though, it all depends on what your after.

Your call on that one - it’s a gamble :smiley:

Any good forums for rumours

At this rate and price, the equity raise might be a 1:1 share rise :sweat_smile:. (Doubling the number of shares)

You can gamble it if you like. But why this gamble and not any other gamble? Why not gamble on Livongo continuing to power on or Alphabet to recover its Friday dip or Facebook to shoot the moon?

Btw the more reasons you come up with the less it’s a genuine gamble

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I know what you’re saying but the whole stock market is gambling. I’m just betting on Leicester winning the league rather than man city, but it happens. When stocks get to a certain value and are supported by certain fundamentals/news they’re worth a punt.

I will be buying up IAG on Monday, SP will be ÂŁ1.30 after the RI has settled. Airlines are very volatile stocks to own but there is a lot of upside. I already have shares in Ryanair and EasyJet for the long term. IAG is a bargain and is very much worth adding to my holdings for a long term hold. I would say buy buy buy my friend.

I should just check we’re talking about the same company here. This is the IAG whose long term debt has gone up by about 300% and current debt gone up by about 1000% in the last 12 months and whose current liabilities are about 125% of current assets, right?

Lufthansa has been propped IAG won’t fail

As have most of the airlines around the world, more debt and restructuring but there is a tremendous amount of potential profit to be had and if you have the money I see no reason to not invest in what were before COVID19 solid companies and very profitable. These are long term holds and well worth the wait. Cruise ships as well, battered but could deliver in years to come if you don’t need the money now.

It’s all opinion and we all have different approaches. I also like the look of Rolls Royce despite its poor results, doesn’t mean I don’t know what I am doing with investing.

Thank you both for what are some good and fair points, well-taken on my end.

For my own part, whilst I accept that IAG is not going to fail, I tend to think of that as a reason to buy bonds in it, not equity. I also see no inconsistency in thinking that a company that was attractive at previous debt levels is no longer attractive at current debt levels.

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Defo agree with RR they have some exciting projects and even their AI software

When the Facts Change, We Change Our Minds (Anatomy of a Sale)

Well here’s you’re in if you aren’t already… FML!

They’re not going bust. Shareholders are presumably fine with this.

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No I don’t think so either but I’ve been holding this bloody bag for months now and after the last couple of weeks watching them claw back a bit, this is a punch to the gut…!

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I welcome it, it actually increases the chances of survival by a lot.

The alternative would have probably required more money from the british and spanish governments, which would have been hard as they have already provided large loans to IAG.
Also issueing shares to the governments would require a negotiation between the 3 of them (2 governments + IAG itself) which in the middle of the Brexit negotiations would have been complex and which would also involve dilution for us.