Thomas Cook shares halve on news of bank talks

gailey_2

What happens if they go bust?

wont shareholders lose shares or be in long line of creditors?

was watching interveiw on news dident inspire me with confidence.
he did rather thourghtlessly tell sky news that 100shops unprofitable and will close so guess all their retail employees wuite worried now.

Also remember the ash cloud crisis last year there was warnings it could happen again.
Been so many natural disasters over the last year
plus middle east guess egypt not no 1 holiday destination anymore.

I guess a lot of older baby boomers who can still afford holidays abroad go in and book in shop.

With lot of people making cut backs they cant rely on volume plus cost of airtravel risen.

Jennifer_Jane

The German bloke has just been on Sky News saying that the package holiday bit is the most profitable, so is definitely part of the business model. 'No cause for concern'. When questioned about the high pay-off for the last CEO, he refused to answer, saying look at the annual report.

Hmmm. Didn't like the look of it all, so I won't be investing.

gailey_2

Jennifer_Jane wrote: »

The German bloke has just been on Sky News saying that the package holiday bit is the most profitable, so is definitely part of the business model. 'No cause for concern'. When questioned about the high pay-off for the last CEO, he refused to answer, saying look at the annual report.

Hmmm. Didn't like the look of it all, so I won't be investing.

Nope fully agree he was very shifty/shuffly went interveiwed.
now banks are cautious about risk they may not keep borrowing if they feel their business model is outdated.

Dident realise their international market was so big but eurozone son downturn and russia suffed as they normally go thailand and egypt.

my guess is will hit trouble.
maybe break up and possibly close down their uk operations.

Mr ree as much as I dont agree with your veiws and relentless bragging would hate for you to invest and lose 10grand think carefully before jumping in after all stockmarket is a volatile place right now.
maybe buy 10,000 premuim bonds instead!

RJP33

Absolutely, £10k is way, way to heavy for me. I guess if you have the funds and can afford to lose it it's an interesting bet that could return significantly quickly.

IronWolf

Very risky buying into this imo.

Market cap of around £100m now, which doesn't seem too unreasonable. If they survive all their cash will be going to the banks for the forseeable future, not worth a lot to a shareholder.

Hoopie1

If you were a bank and this lot came to you with a new money request in the current climate, would you lend them the money? Nor would I. Besides, it isn't like these things don't happen very often - Thomas Cook bought the rather large and rather bankrupt Airtours/MyTravel business a few years ago.

RJP33

IronWolf wrote: »

Very risky buying into this imo.

Market cap of around £100m now, which doesn't seem too unreasonable. If they survive all their cash will be going to the banks for the forseeable future, not worth a lot to a shareholder.

Only 2 scenarios with this one, lose all your money or get a 300% return. That's risk for you.

IronWolf

RJP33 wrote: »

Only 2 scenarios with this one, lose all your money or get a 300% return. That's risk for you.

I'm not convinced the company is worth £300m if it survives.

HMV shares did a similar thing last year and have only ever gone down since.

Not wise to try and catch a falling knife

Kennyboy66

gailey wrote: »

What happens if they go bust?

wont shareholders lose shares or be in long line of creditors?

was watching interveiw on news dident inspire me with confidence.
he did rather thourghtlessly tell sky news that 100shops unprofitable and will close so guess all their retail employees wuite worried now.

Also remember the ash cloud crisis last year there was warnings it could happen again.
Been so many natural disasters over the last year
plus middle east guess egypt not no 1 holiday destination anymore.

I guess a lot of older baby boomers who can still afford holidays abroad go in and book in shop.

With lot of people making cut backs they cant rely on volume plus cost of airtravel risen.

If they go bust, the shareholders are the very last in the queue and would normally get nothing.

My parents (late 60's) have plenty of holidays but booking a package would be the exception rather than the rule.

Package holidays once had a price / convenience advantage. In the main part that has been eroded by the internet and budget flights.

I'm sure there is plenty of room for niche operators but I can never see growth in package holidays for European market.

Jennifer_Jane

Perhaps if it's the cost of the high street shops which is sapping the profits, and they now have to close them, then they should have avoided having an online incentive.

I still like package holidays, and the 'all-inclusive' package has, I understand, become more and more popular. I think the shops have become 'service centres' more than shops, and my High Street is full of travel shops - more travel agents than charity shops! Amazingly.

Thomson have, it seems, very good 'properties' and I particularly like their 'Small & Friendly' packages. Nevertheless, all booked online OR via a discount telephone operator.

Thos. Cook (and to some extent Thomson's) have cannibalised their own business, their staff are diffident when you go into a store and need to learn some selling techniques (ie smarten up/be friendly and polite/sell the product). I feel almost as uncomfortable in a travel agents as I used to in an ironmonger's, where, being female, I FELT as if I was a fish out of water. Remember ironmongers? Our local one closed down a few years ago.