Thomas Cook Group

Thomas Cook Group Share price continues to attract a lot of speculative attention.

Their share price was around 80p back in 2018 but has dropped and dropped during 2019, the company has a large debt pile and its two main assets are its airline and its tour operator.  The company has been attempting to sell the airline but recently announced continued poor trading due to the challenges in the UK market, not least of which Brexit plays a part, but there is also a more general EU slow down and Thomas Cook has a strong Scandanvian and German market presence.

During July 2019 the share price was driven down by short sellers.

There was a spike up in the share price following fresh interest in the Group by a Russian investor and a Turkish Tour operator.

If a debt for equity swap takes place as mooted around the market then in all likelihood private investors and indeed institutional ones will be all by wiped out with the talk being of a 1p share value.

Given the tough trading, it is likely that TCG future depends on a tie up with a stronger partner, as if the last twelve months are anything to go by it does not have a seem to have viable future as a stand alone business.

Updated Thomas Coook indeed doesn’t have a viable future and they actually went into liquidation in September triggering a huge Government effort to retrieve the passengers stuck.

As another point I’ve setup a couple of blogger accounts and post from time to time about Reporting Accounts on them.  My most recent one is here.

 

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