numberbiter
06 May 2018
More chaos at Gatwick Airport If any investor wants to know why the shares of this awful company keeps going down, all they need to do is to listen to today's news or read tomorrow's newspapers.The line was closed between Gatwick Airport and Three Bridges, so anyone travelling from London to Brighton would have to get on a bus replacement service running between these two stations. Now, management at the Go-Ahead Group failed to comprehend that trains carry more passengers than buses, so not enough buses were booked. Worse, there was no queueing system in place, so there was absolute chaos. Most passengers were stuck at Gatwick for more than two hours in the heat. At least it wasn't raining!Someone told Southern (the Go-Ahead subsidiary) that trains carry more passengers than buses, so they came up with a cunning plan, Baldrick style; they cancelled trains.It is not as if Southern had not been told of the engineering works weeks in advance; the problem is that they have neither the staff nor the inclination to plan anything. If passengers are inconvenienced then so be it. What a way to run a company! Investors should get out while they can.
numberbiter
04 May 2018
Re: why the big drop this morning? A little generally and a lot specifically.
FRTEB
04 May 2018
Re: why the big drop this morning? " A crisis is round the corner. " Generally or specifically to GOG?
numberbiter
04 May 2018
Re: why the big drop this morning? Labour did not do too well in the Council elections, so this share should have recovered some of yesterday's losses. It didn't and even went further down slightly to 1,728p. This is not good news for investors. A crisis is round the corner.
FRTEB
03 May 2018
Re: why the big drop this morning? " (Sharecast News) - Go-Ahead was under the cosh on Thursday as Deutsche Bank downgraded the transport operator to 'hold' from 'buy', slashing the price target to 1,840p from 2,340p in the absence of future rail franchise wins. The bank pointed out that the shares have performed "very well" since mid-February, first on the back of good first-half results and then on read-across from Apollo's bid for FirstGroup. "We continue to believe Go-Ahead is robust with a net cash balance sheet. However in the absence of future rail franchise wins, and with Go-Ahead's bus businesses seeing the same muted trends as the rest of the industry (London - Transport for London budget issues; Regional - anaemic volumes), it is less clear that the shares are significantly undervalued," DB said. It added that while Go-Ahead is regularly characterised as an income stock, on DB's forecasts free cash flow, pre-working capital, in FY18E, FY19E and FY20E will not quite cover the dividend payments to ParentCo shareholders of around £44m per annum. "It's clear that Go-Ahead has the balance sheet capacity to do this. A potential future rail franchise win would also likely lead to upwards earnings revisions and working capital inflow (albeit cash forecasts could actually move down for the initial few years on higher capex and no upstreaming of dividends from the train operating company). "When Go-Ahead shares were substantially cheaper this was more acceptable - now it is less so." At 1020 BST, the shares were down 7.5% to 1,808p. " From the HL website (ii not showing the full analysis, only the note of it)
numberbiter
03 May 2018
Re: why the big drop this morning? I would have thought it was obvious why the big drop for this awful company this morning. A recent (all-party) parliamentary report said that rail privatisation was a shambles. The franchises run by this company were declared the worst, by offering an appalling service made worse by management's unwillingness to discuss anything with the Unions; employees are treated in utter contempt. The report said that rail customers were being ripped off, paying the highest prices in Europe while suffering the worst service in Europe.In fairness to the company, management's irrational behaviour has been egged on by our Minister of Transport, one Chris Grayling, who hates unions. It was reported months ago that Theresa May wanted to sack him, but she is powerless as she has to do what Brexiteers tell her to do. They would not allow one of their own to be sacked.However, the report on rail privatisation has shocked even the Tory government into understanding that something has to be done. What exactly will be done is dependent upon today's local elections. If Labour do well, then drastic action will be taken leading to a massive drop in revenue and profitability for rail franchises. If they don't then the action taken by government will be minimum. But it is a one way bet for this company, in the long term; their share price will either go down a little or collapse. The market is obviously nervous and that is the reason for today's big fall. If Labour is hammered at today's elections you can expect the price to recover today's losses; otherwise a further fall is inevitable.
axel27
03 May 2018
Re: why the big drop this morning? Good morning Life in Plastic,Not seen any news supporting that £50m drop in the market cap today.Still 7% above where I sold out. Volatility is fun?A, off for a swift half
LifeInPlastic
03 May 2018
why the big drop this morning? Haven't seen any news affecting GoG so far
numberbiter
26 Feb 2018
Another shambles If you want evidence of appalling management, just review the shambles at Redhill Station (Surrey) where relacement buses were used because of track maintenance. There was no queuing system and no organisation. Hundreds of people, including women with children found themselves in what resembled a football crowd before we had all-seater stadia. No doubt down to staff shortages; I am sure the Transport Minister will (as usual) blame the unions but nobody was on strike and nobody was working to rule. Much more of this ineptitude and surely Southern will lose its franchise.
numberbiter
05 Feb 2018
Re: JP morgan target price Why does the price continually go down? Just read my post of 11 August 2017. Nothing has changed; it's down to poor management.
LifeInPlastic
26 Oct 2017
JP morgan target price If anyone has any detail of the reasons they had for the big drop in their target price I'd be interested to see it.
numberbiter
23 Oct 2017
Re: Broker BUY Ratings x2 You can expect this share will fall by a minimum of 50p on November 10 (A 72p dividend goes ex dividend on November 9).
numberbiter
23 Oct 2017
Re: Broker BUY Ratings x2 Target price 2080p? You have to admit that the game of 'fantasy share prices' beats fantasy football!
Thedarkkn1ght
11 Sep 2017
Broker BUY Ratings x2 Canaccord and Liberum both issued BUY recommendations todayTarget 2080p
Topalov
11 Sep 2017
Re: The darkn1ght We will have to agree to disagree. There is no point in continuing this debate.
