Hello! You are viewing your 1 free guest article this week


Please log in or join now for free, immediate and unlimited access to our award-winning online content. Find out more...

Join us
Already a member? Log in here

Travel industry news

17 May 2019

BY Gary Noakes

Share
TRFBLI

Updated: Thomas Cook shares slump again

Thomas Cook’s share price fell more than 40% to a new low on Friday as analysts signalled alarm over its debt.

Thomas Cook website.jpg
Sharelines

Cook share price takes another battering after £1.46 billion loss

The price had fallen to below 12p by mid-afternoon, compared to 19p on Thursday (16 May) and £1.39 a year ago. Thomas Cook’s previous share price low was 13p, reached in 2012 following a disastrous summer.

 

Friday’s slump followed publication of research by analysts, including those at Citigroup, which said the company’s £738 million value was now outweighed by its £750 million debt.

 

Citigroup cut its target price for the shares from 28p to zero. Cook revealed a £1.46 billion half-year loss on Thursday, but £1.1 billion was due to the writing down of assets from the 2007 merger with MyTravel.

 

In the unlikely event a company’s share price falls to zero, investors lose all their money, but it does not mean the company ceases trading, as it can still be generating cash and using borrowed funds to continue.

 

TTG has contacted Cook for a comment.

What’s your view? Email feedback@ttgmedia.com and let us know your thoughts or leave a comment below.

Add New Comment
Please sign in to comment.
Show me more

Follow Us



Twitter
LinkedIn
Facebook
Instagram
YouTube
Soundcloud
TTG Media Limited.
Place of registration: England and Wales.
Company number 08723341.
Registered address: New Bridge Street House, 30-34 New Bridge Street, London EC4V 6BJ
Scroll To Top