Thomas Cook shares halve on news of bank talks

worldtraveller

Thomas Cook is running low on cash and has begun talks with its banks, in an effort to increase its borrowings to tide it over the slow Christmas season.

Shares in the tour operator more than halved on Tuesday morning after it admitted that trading has "deteriorated" in recent months. It is now seeking to borrow more in the short term, and has postponed the publication of its financial results until the talks are concluded.

Guardian

Never a good idea for the markets to delay results! It's SP had already fallen 80% since the start of the year before today's further fall.

Kennyboy66

Not content with trying to tax our bankers to death, now de Germans are taking our package holidays off us.

The previous chief exec (left Aug 2011) was paid £15 million between his appointment in 2007 and when he left.

The shares were 315p when he was appointed.
They are now 14p.

His payoff in August was £2m.

The Chairman Michael Beckett said at the time:

"The board would like to thank Manny for his contribution to the group."

King_Of_Bling

Sell it to O'Leary, if he can't make it pay no one can.

IronWolf

Kennyboy66 wrote: »

Not content with trying to tax our bankers to death, now de Germans are taking our package holidays off us.

The previous chief exec (left Aug 2011) was paid £15 million between his appointment in 2007 and when he left.

The shares were 315p when he was appointed.
They are now 14p.

His payoff in August was £2m.

The Chairman Michael Beckett said at the time:

"The board would like to thank Manny for his contribution to the group."

I know it's ridiculous isn't it. IMO at least 90% of exec salary should be in company shares, held in a protected account and unable to be sold for at least 5 years.

Jennifer_Jane

Makes me feel I should pitch a tent somewhere...

I went on holiday with Thos. Cook in March this year, and with Thomson in May. The difference was marked. The Thos. Cook employees were scruffy, indolent, smug, and uncaring. What a pity the CEO wasn't travelling with them now and again, to pull their socks up.

Thomson weren't so much better, but I would travel with them again. Both of these companies need(ed) to (literally) smarten up. The holiday experience stays with you and there's no room for the Company to relax - that's what they should be helping you do.

I am as astounded by the huge amounts that public companies like to give their executives, as I am by the managers in the public sector. The rich get richer, etc. All remuneration packages for the executive team, which is published in the Accounts, should go to shareholders for approval and not just to a remuneration committe with the usually part-time Board Directors (who are all on each others' boards anyway).

kabayiri

Jennifer_Jane wrote: »

...
I am as astounded by the huge amounts that public companies like to give their executives, as I am by the managers in the public sector. The rich get richer, etc. All remuneration packages for the executive team, which is published in the Accounts, should go to shareholders for approval and not just to a remuneration committe with the usually part-time Board Directors (who are all on each others' boards anyway).

You're forgetting the hangers on : the "Head Hunters" (recruitment staff is such a yesterday term) creaming the commission of executive job hoppers ; the accountants working out how to pay these people via 27 different countries ; the non-exec Directors who seem happy to turn up a couple of days a month and collect their £60K in return.

The top boss merry go round just keeps on a turning.

MrRee_2

What a fantastic chance to buy some very cheap shares ..... and that's what I'm about to do.

£10,000 punt would buy around 70,000 shares - they will double within 2 months ... keeeerching, £10,000 profit.

If it's bought out, then the money is returned - pretty much.

Easy pickings ....

RJP33

MrRee wrote: »

What a fantastic chance to buy some very cheap shares ..... and that's what I'm about to do.

£10,000 punt would buy around 70,000 shares - they will double within 2 months ... keeeerching, £10,000 profit.

If it's bought out, then the money is returned - pretty much.

Easy pickings ....

I agree with your general analysis although there is risk IF another natural situation occurs such that they have to refund monies.

And the fact that their cash reserves are low is a bad indictment on their current business.

MrRee_2

True ... I take your point.

But, to be honest, £10,000 in a savings account is earning me 3% and I pay higher rate tax on that!

The punt is worth it to me ... I get some wrong, but some calls have been great.

Here goes .............. *holds nose and jumps into the deep end*

RJP33

Tempted to get some, but 10k is a little too much risk for me. I'll go with 3k ish which I can afford to lose worst case.

Kennyboy66

MrRee wrote: »

What a fantastic chance to buy some very cheap shares ..... and that's what I'm about to do.

£10,000 punt would buy around 70,000 shares - they will double within 2 months ... keeeerching, £10,000 profit.

If it's bought out, then the money is returned - pretty much.

Easy pickings ....

Who really needs travel agents ?
When did you last book a package holiday ?
Who wants to book their holiday with a travel company that could go bust ?

They operate in the main on small margins (operating margins 2 - 3%) and rely on huge volumes.

They owe roughly 4 times their assets (excluding intangibles).

Could double - could easily go into administration.

Nein Danke