BBC News - Thomas Cook shares dive on news of bank talks Anybody looking to catch a dead cat bounce on Thomas Cook? Thomas Cook shares now down 75% as they are in talks with banks to restructure almost £1bn in debts. Their top destinations: Egypt (riots), Tunisia (rough), Thailand (flooded).
Even though half heartedly agreed with you, my greed compelled me to look to the limited downside and took a punt purchasing 100,000 shares at ~11p. Let's see how they do.
i was waiting 4 you to post your entry, but you did it so long after the fact that now I cant get that amazing price. we only buy low here on good old et that is some ugly ass selloff. in case you think stocks are money..... damn, ask mf globals cust, even money aint money
Not in this for the long haul - it was only a punt and not a serious trade at all and hope to be flat by close today.
Some articles that I found useful: http://www.bloomberg.com/news/2011-...mer-exodus-after-75-stock-slump-in-a-day.html "Thomas Cook Risks Customer Exodus During Talks on Debt After Stock Slumps" date = Wed 23 November This article discusses * impact on customers * 400 million GBP rights offer that did not happen www.reuters.com/article/2011/11/23/us-thomascook-idUSTRE7AL1OD20111123 "Thomas Cook's banks appoint adviser: sources" Wed Nov 23, 2011 2:34pm EST * Appointment of EY as adviser to bank - which suggests that Thomas Cook will be restructured. * customer impact * price of loans in secondary market "A trader in Thomas Cook's debt told Reuters the decision by the company's 17-strong banking syndicate to appoint a debt advisor suggested they anticipated an in-depth restructuring will be necessary rather than just a refinancing." ""People will be put off dealing with Thomas Cook," Michelle Baldwin, a recruitment consultant, looking at deals in the window of Thomas Cook's shop in Moorgate, London, told Reuters." "Loan market traders marked down Thomas Cook's term loans and revolving credit facility to 57.5 percent of face value in secondary markets, from 62.5 percent on Tuesday." **** www.reuters.com/article/2011/11/22/us-thomascook-idUSTRE7AL1OD20111122 "Thomas Cook shares crash after default warning" Tue Nov 22, 2011 11:40am EST "In debt markets, Thomas Cook's 300 million pound and 400 million euro bonds were trading at less than half of face value while its 150 million and 850 million pound credit facilities were being quoted at 60-65 percent of face value and looked set to drop further, according to traders." "Espirito Santo Investment Bank advised against holding Thomas Cook equity at any price. "While the banks may yet again allow the group flexibility, realistically, we would expect Thomas Cook will be completely straight-jacketed by the banks," said Espirito Santo analyst Geetanjani Sharma. "Sharma also said Thomas Cook's suppliers and Britain's Civil Aviation Authority could take a closer look at the viability of allowing bookings from Thomas Cook, which had issued a string of profit warnings this year. "With more questions than answers on the operational viability of Thomas Cook over the coming months when there are few indications of any improvement in the macro condition, we consider this stock inappropriate for equity holders."
This article from 21 October www.reuters.com/article/2011/10/21/thomas-cook-bonds-idUSL5E7LL19E20111021 is about a "bank loan deal" reached about 5 weeks ago.
and... Thomas Cook new £200 million credit facility. http://www.bbc.co.uk/news/business-15896503 Let's see how price reacts on Monday.
Short-term, this is very bullish for the company. However I note from the article "The company's board is also to taking steps, including a strategic review, to reduce the group's debt "and reach a more appropriate capital structure over time". This sounds like a forthcoming capital raising of some type - such as the 400 million GBP capital raising discussed briefly here: http://www.bloomberg.com/news/2011-...mer-exodus-after-75-stock-slump-in-a-day.html