STOCKS TO WATCH: ‘Short-haul’ ride makes easyJet nauseous
The announcement of the reopening of flights to the US last week encouraged investors to climb back on board airlines after the latest bout of Covid turbulence for the industry.
Short-haul operator easyJet was among the beneficiaries and hopes of a takeover have also boosted sentiment.
An offer from the Hungarian low-cost carrier Wizz Air has already been rejected.
Turbulence: A £1.2bn rights issue to raise money to pay off debt and make investments, possibly in more aircraft, has shaken some confidence
However, a £1.2bn rights issue to raise money to pay off debt and make investments, possibly in more aircraft, has shaken some confidence. It also appears to have been tempted by a group of hedge funds hoping to profit from a drop in stock price.
Shortsellers including AQR Capital, LMR Partners and Gibraltar-based Guevoura have increased their bets against the airline in recent days.
The company is now the fourth most shorted FTSE stock with 6.2 percent of the shares lent according to ShortTracker.
Holidaymakers avoid breakfast drinks
The taste of a 6-hour pint at an airport Wetherspoons may be synonymous with vacation for some, but analysts warn that not enough is back on the breakfast drink.
Broker Peel Hunt says airline passenger volume is still 65 percent of pre-pandemic levels, weighing on the pub chain’s revenues.
This week’s results should give some clue as to whether the dent and rising costs are likely to hit earnings expectations.
McCabe faces tough ride at AO World AGM
Shaun McCabe of AO World may endure a heavy spin cycle at this week’s annual washing machine sales meeting.
Shareholder advisor Glass Lewis has urged investors to vote against McCabe’s reappointment to his role as non-executive director.
McCabe also sits on the board of directors for Boohoo — whose board has been in the spotlight over slave labor allegations — and is Chief Finance Officer at Trainline, which saw its shares fall due to a train rating this year.
Glass Lewis argues that McCabe is overburdened and “needs to keep some spare capacity in the event of a crisis.”
With AO shares down 45 percent this year after last year’s Covid rally, that time may be at hand.
Lord Wolfson presents the following results
Expect Lord Wolfson to provide a quintessentially grounded view amid the chaos when he presents the results of the first half of Next this week.
The Tory fellow has built a reputation for calm forecasting, which could come in handy amid freight problems, labor shortages and environmental concerns in retail.
Strong online trading has pushed the modeflogger’s stock to nearly all record highs, and investors will be eager to assess the dividend outlook.
The City favorite has just paid out £140m to shareholders and a £100m payout is slated for January, provided Christmas goes as planned.
Annual profits are expected to be £750 million, so payouts should continue to roll off the shelves.