easyJet share price crash - 'no blame'
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How we have short memories. Does anyone care to think back even 5 years or so at the cost of European air travel and the fares being quoted then. easyJet and the other low cost carriers have changed the face of European air transport.
Prisoner, what possible comparison can you make with AE? you've no credibility mate with comments like that.
Prisoner, what possible comparison can you make with AE? you've no credibility mate with comments like that.
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Sell your Easy shares and use the money to buy BA shares(going for a bargain). Great longterm investment. Yes I am BA, Yes I am Serious.
Stelios is getting out himself, unloaded a lot already, and has stepped back from it's running(good timing so he cannot be blamed) and the whole thing was his idea in the first place. Low-cost expanding airlines grow exponentially but they also quickly run up against a brick wall of escalating costs once they get too BIG, leave their home territory or start buying other outfits(GO, D.BA)as their own recruitment becomes strained. If they try to go LH, the costs will grow even more exponentially than their profits, so there are physical limits to which Easy can grow. To add to the problem, as the airline grows, they start facing the same problems destroying BA. Employees get frustrated by the growing inefficencies or resent being bought out(GO) and after a few years under their belt start demanding better T&C's.
Easy has changed the face of SH European travel forever no one is doubting that. It will continue to be a Viable carrier and the most dominant in SH in Europe before long. But once the growth inevitably slows, how many shareholders do you think are going to hang in there ? Don't keep all your Eggs in One basket, even Stelios doesn't do that !
Good Luck and Well done !!!
PS: I would wait until the Iraq War starts next week to buy BA.
Stelios is getting out himself, unloaded a lot already, and has stepped back from it's running(good timing so he cannot be blamed) and the whole thing was his idea in the first place. Low-cost expanding airlines grow exponentially but they also quickly run up against a brick wall of escalating costs once they get too BIG, leave their home territory or start buying other outfits(GO, D.BA)as their own recruitment becomes strained. If they try to go LH, the costs will grow even more exponentially than their profits, so there are physical limits to which Easy can grow. To add to the problem, as the airline grows, they start facing the same problems destroying BA. Employees get frustrated by the growing inefficencies or resent being bought out(GO) and after a few years under their belt start demanding better T&C's.
Easy has changed the face of SH European travel forever no one is doubting that. It will continue to be a Viable carrier and the most dominant in SH in Europe before long. But once the growth inevitably slows, how many shareholders do you think are going to hang in there ? Don't keep all your Eggs in One basket, even Stelios doesn't do that !
Good Luck and Well done !!!
PS: I would wait until the Iraq War starts next week to buy BA.
Last edited by airrage; 24th Sep 2002 at 13:38.
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There was me thinking Stelios was getting out because he's an entrepeneur?!? He's good at that, what's he not especially talented at is running an established company (his excuse not mine). His family still own a large percentage of the shares.
Longhaul doesn't even feature in the plan for easyJet. eJ is based around the SouthWest concept. Stick to what they're good at is the plan.
Point taken about getting larger and the associated costs but on that front they're at least making an effort. Rather than build an Orange Waterside they've gone and bought another warehouse to convert into offices at Luton Airport
As for shareholders sticking around, you yourself said they'll be around as a viable company. Well if the viable company is making good profits why shouldn't eJ remain in someones balanced portfolio?
Read this article about airlines (& steel) in the States. Uncanny parallels spring to mind about the old established airlines.
http://www.fool.co.uk/stockideas/200...emaillunchhtml
Longhaul doesn't even feature in the plan for easyJet. eJ is based around the SouthWest concept. Stick to what they're good at is the plan.
Point taken about getting larger and the associated costs but on that front they're at least making an effort. Rather than build an Orange Waterside they've gone and bought another warehouse to convert into offices at Luton Airport
As for shareholders sticking around, you yourself said they'll be around as a viable company. Well if the viable company is making good profits why shouldn't eJ remain in someones balanced portfolio?
Read this article about airlines (& steel) in the States. Uncanny parallels spring to mind about the old established airlines.
http://www.fool.co.uk/stockideas/200...emaillunchhtml
Last edited by Scottie; 24th Sep 2002 at 15:53.
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did he sell shares?
airrage, where did you get your info about Stelios "unloading a lot(shares) already"?
Remember that such information has to be published to satisfy Stock Exchange regulatory requirements. On September 13, he stated that he held almost 22% of the share capital of easyJet plc and that his brother and sister together held another 24.4%.
He added that, during the capital raising for the acquisition of Go Fly ltd, he did not liquidate any of his shares, contrary to some press reports, selling only enough nil paid rights to take up the remainder of his rights. (don't ask!)
If he has sold any since September 13, I have not seen news of this.
Last year he sold a large amount of shares about this time, when his family reduced their overall shareholding by about 17%.
Remember that such information has to be published to satisfy Stock Exchange regulatory requirements. On September 13, he stated that he held almost 22% of the share capital of easyJet plc and that his brother and sister together held another 24.4%.
He added that, during the capital raising for the acquisition of Go Fly ltd, he did not liquidate any of his shares, contrary to some press reports, selling only enough nil paid rights to take up the remainder of his rights. (don't ask!)
If he has sold any since September 13, I have not seen news of this.
Last year he sold a large amount of shares about this time, when his family reduced their overall shareholding by about 17%.
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NEWSWATCHER
I said he had offloaded a significant # of shares, nowhere did I claim it had been since SEPT ? But for your info on a quick 15minute glance of Official Records(I might have missed some STELIOS or Easy Group share SALES).....
NOV 2000 IPO
IPO effectively sells 25% of the company @310P. The shares to be issued represent approximately 25% of the enlarged share capital of easyJet.
http://www.uk-wire.co.uk/cgi-bin/art...01251379U.html
OCT 2001 Open OFFER
"Stelios Haji-Ioannou, the Chairman of the Company, proposes to sell 13,000,000 Ordinary Shares.
The number of shares held by persons other than Stelios Haji-Ioannou and his immediate family following completion of the Placing and Open Offer will increase from approximately 29.2% at present to between 40.1% and 42.1%. IN OTHER WORDS THE STELIOS FAMILY OFFLOAD ABOUT 10% of their holdings.
http://www.uk-wire.co.uk/cgi-bin/art...00302556M.html
NOV 2001 Director shareholding
32,532,258 shares (12.19%) he sold on Nov 2001 at £3.75/Share.
Proceeds of £121,995,968.
http://www.uk-wire.co.uk/cgi-bin/art...54502747N.html
NOV 2001 Open OFFER
Stelios offloads between 13 - 18.5 million shares here.....
Of these 39,032,258 shares, 6,500,000 new Ordinary Shares were placed on behalf of easyJet and 32,532,258 existing Ordinary Shares were placed on behalf of easy Group Limited ('easyGroup'), a company indirectly owned by Stelios Haji-Ioannou, the Chairman of easyJet. The net reduction in the shareholding of easyGroup at the completion of the Placing and Open Offer will therefore be between 13,000,000 and 18,538,982 Ordinary Shares. Sold at 375P.
http://www.uk-wire.co.uk/cgi-bin/art...00325251M.html
19June 2002
Newswatcher "selling only enough nil paid rights to take up the remainder of his rights" That amounted to the following........
22mill shares being offloaded. Although it sounds much better the way Stelios puts it.
Of the 47,569,301 Nil Paid Rights that have been placed, 22,173,317 Nil Paid Rights have been placed on behalf of easyGroup(owned Stelios).
SEP 2002
Today I personally hold almost 22% of the share capital of easyJet plc and my brother and sister together hold another 24.4%.
You can get out the calculators to see how many Millions of shares Stelios has offloaded yourself. It is slightly confusing because each OPEN OFFER Stelios used to Dilute his holding. At the end of the day Stelios and family owned 100% of Easyjet prior to launch, they now hold 46.4% after several Open Offers have increased the total number of EASYJET shares on the market
NEWSWATCHER, I think you need to change Newspapers if you think Stelios isn't offloading and stepping away from the business.
I said he had offloaded a significant # of shares, nowhere did I claim it had been since SEPT ? But for your info on a quick 15minute glance of Official Records(I might have missed some STELIOS or Easy Group share SALES).....
NOV 2000 IPO
IPO effectively sells 25% of the company @310P. The shares to be issued represent approximately 25% of the enlarged share capital of easyJet.
http://www.uk-wire.co.uk/cgi-bin/art...01251379U.html
OCT 2001 Open OFFER
"Stelios Haji-Ioannou, the Chairman of the Company, proposes to sell 13,000,000 Ordinary Shares.
The number of shares held by persons other than Stelios Haji-Ioannou and his immediate family following completion of the Placing and Open Offer will increase from approximately 29.2% at present to between 40.1% and 42.1%. IN OTHER WORDS THE STELIOS FAMILY OFFLOAD ABOUT 10% of their holdings.
http://www.uk-wire.co.uk/cgi-bin/art...00302556M.html
NOV 2001 Director shareholding
32,532,258 shares (12.19%) he sold on Nov 2001 at £3.75/Share.
Proceeds of £121,995,968.
http://www.uk-wire.co.uk/cgi-bin/art...54502747N.html
NOV 2001 Open OFFER
Stelios offloads between 13 - 18.5 million shares here.....
Of these 39,032,258 shares, 6,500,000 new Ordinary Shares were placed on behalf of easyJet and 32,532,258 existing Ordinary Shares were placed on behalf of easy Group Limited ('easyGroup'), a company indirectly owned by Stelios Haji-Ioannou, the Chairman of easyJet. The net reduction in the shareholding of easyGroup at the completion of the Placing and Open Offer will therefore be between 13,000,000 and 18,538,982 Ordinary Shares. Sold at 375P.
http://www.uk-wire.co.uk/cgi-bin/art...00325251M.html
19June 2002
Newswatcher "selling only enough nil paid rights to take up the remainder of his rights" That amounted to the following........
22mill shares being offloaded. Although it sounds much better the way Stelios puts it.
Of the 47,569,301 Nil Paid Rights that have been placed, 22,173,317 Nil Paid Rights have been placed on behalf of easyGroup(owned Stelios).
SEP 2002
Today I personally hold almost 22% of the share capital of easyJet plc and my brother and sister together hold another 24.4%.
You can get out the calculators to see how many Millions of shares Stelios has offloaded yourself. It is slightly confusing because each OPEN OFFER Stelios used to Dilute his holding. At the end of the day Stelios and family owned 100% of Easyjet prior to launch, they now hold 46.4% after several Open Offers have increased the total number of EASYJET shares on the market
NEWSWATCHER, I think you need to change Newspapers if you think Stelios isn't offloading and stepping away from the business.
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...and there was me thinking this thread was exploring the reasons behind the recent price crash!
Thanks for the timeline airrage, your diligence is impressive but perhaps wasted, since in terms of his "offloads" being behind the current drop, from a price of about 440pence at the beginning of June, you have included no recent sales from Stelios.
Certainly the market is nervous that he may still offload, particularly when he vacates the chairman's position, and there are apparently no restrictions to stop him doing so. However, in a depressed market, he would normally be expected to wait for an improvement in price, unless desparate!
At the time of the "GO" purchase a number of sources predicted that he would have to "offload" up to £100m of shares to fund the purchase. So far they have been proved wrong.
Oh, and my sources are perfectly adequate thanks, and they are not necessarily newspapers!
Thanks for the timeline airrage, your diligence is impressive but perhaps wasted, since in terms of his "offloads" being behind the current drop, from a price of about 440pence at the beginning of June, you have included no recent sales from Stelios.
Certainly the market is nervous that he may still offload, particularly when he vacates the chairman's position, and there are apparently no restrictions to stop him doing so. However, in a depressed market, he would normally be expected to wait for an improvement in price, unless desparate!
At the time of the "GO" purchase a number of sources predicted that he would have to "offload" up to £100m of shares to fund the purchase. So far they have been proved wrong.
Oh, and my sources are perfectly adequate thanks, and they are not necessarily newspapers!
Last edited by newswatcher; 26th Sep 2002 at 08:03.
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Stelios has not been running the airline for a very long time and although still the public face of the company, the airline he and Ray Webster have built is founded on the product and value not the person. The brand awareness easyjet has in the market is now very well established and very successful and frankly Stelio's decision to step back will have, I believe, little impact. He is committed to remaining very close to the airline.
