This is a cautionary not for all those looking at MyTravel as a bargain.
First off to set the record straight I think MYT has always been a great opperator and staff are great and hope they pull through and get into profit etc etc etc.
HOWEVER
I've been following them closely as a investment option for well over 6 months and the start of March was the time to dive in, as historically the share price rallys in the summer.
This is exactly what happened at the start of March. I stuck in some cash and after a week had made 20%...nice!
However after this rise and the fact MYT was the only share not to drop after the Madrid bombings made a few city "experts" take a closer look at things. What they found was a company riddled with debt and putting off a return to profit AGAIN. "Shares" magasine 2 weeks ago did a snapshot on it and has put it in the timebomb catagorey along with Eurotunel!!
So...I got out.
Low and behold they announce share dillution.
All hope of a rally for their shares this summer is over. They are certainly only for big time gamblers...not widdows and orphans.
Wouldn't suprise me if they do hit the 1- 3p mark if more bad news is forthcoming, but 10p is their stable ground for now. If they go below 5p all bullish bets will be off and the city boys will pull everything out and let the price slide.
Sorry to be down on MYT - I was hoping for some good news about them for their staff's sake.
If you want to put you money anywhere, put it in BA (BAY) it's still the city's darling blue chip share (and always will be) and has already starting to recover after Madrid, with expectation of it getting back to the highs of 340p in next month or so.
Get in Monday - You might still nick some at 270p if your lucky at start of trading.
Good luck punters...and good luck MYT!!!!!
