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209.20-5.00 (-2.33%)
At close: 04:35PM BST
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  • D
    What's going on with this 10% drop??
  • D
    Nothing to worry about, the gap down will eventually be filled back up to where it was. TUI is still channelling between 215 and 250. Just going to be a flat year. Next year and so on should be good for them.
  • T
    Shame they didn't include regular shareholders in the placing. Little reason to hold this from here if they constantly dilute.
  • O
    What does this sale of shares mean for shareholders, is it better to sell the shares because of the massive drop?
  • D
    Up 0.40% past 6 months. Accumulate now and hold will benefit you in the long run. The stock has major support at this level now.
  • M
    Book your summer trips people, lets travel while we can again!
  • J
    Fing hell we cannot catch a break on this one. Right when it recovers after months of pain it crashes again
  • k
    So 7 billion in debt, maybe 1.4Billion in cash, and 3.5billion shares that clearly need 10 to 1 reverse split. Am I missing something? Looking like bankruptcy in waiting?
  • k
    So the question is, has the Russian taken off with 1.4Billion of cash that was on books or is it really just frozen unable to be used to pay every day operations? Are we headed to BK?
  • J
  • Y
    Sell. Russia and China is NOT a storm in a tea cup. it could take years and who says the West will win??
  • M
    I'm copying here a post that I just shared on the Trading 212 forum, in case someone else here has similar questions:

    Hello :)

    Not a Trading 212 customer, but someone referenced this thread on Yahoo Finance, so I thought I might help out clarifying a few questions here.

    Q) I own CFDs on TUI, will I get subscription rights?
    A) No. The CFDs are contracts that reflect the price movement in the underlying instrument, that is the TUI AG stock. It does not carry any other property of that stock — just the price. It does not matter if you bought before or after January 8th, CFDs are not stocks.

    Q) I bought stock on January 8th, when will I receive my subscription rights?
    A) You won’t. Eligible stocks had to be owned on market open on January 8th. If the support line is telling you something different, they’re mistaken. No new position open on or after January 8th is eligible for subscription rights, and thus you shouldn’t expect to receive any information regarding this event.

    Q) Can I buy subscription rights now in order to achieve a lower price on purchasing the stock?
    A) Yes, but not really. The price of the subscription rights is not the ultimate price of the stock. Let me use my own position as an example:

    * The current stock price is 3.984, while my subscription rights can be sold for 2.478.
    Buying 1 subscription right buys you the right that one stock held before January 8th granted you. Let’s call that a “unit of rights”.
    * For every 29 “units of rights” — that is to say, the rights that owning 29 stocks on January 8th granted you — you will be offered the purchase of 25 new stocks at a strike price of 1 euro plus 7 cents fixed commission. In other words, 1 “unit of right” is not the right to buy 1 stock, but to buy 25/29th of a stock, or 0.862 stock. To put it differently, you need 1.16 rights to buy 1 stock at 1.07 euros.
    * So, the math to figure out the discount you can achieve by buying rights now vs. just buying the stock outright is as follows: (2.478 * 29 / 25) + 1.07 euros = 3.944 euros to end up with one stock via rights purchase. In other words, the discount right now is 4 cents. And that’s excluding the broker commissions you’ll have to pay to buy the rights. I don’t know about Trading 212, but I’m pretty sure my broker’s commission is larger than 4 cents per share, turning this into a premium rather than a discount.
    * The final catch here: Even if you’re able to achieve a price with a sensible discount compared to just buying the stock, consider this. There is a risk (this is noted clearly in the TUI investors documentation on the event) that the event may be cancelled, i.e. that no stock emission takes place after all. If that is the case, the rights cannot be exercised, and their value is lost. No ifs and buts, if you buy subscription rights, and the subscription is cancelled, you lose all your money.
    So, I would forget about buying rights and just buy the stock if you want it.

    Just as a final note: These last couple of months of price development put us firmly above the 200 and 50 daily SMAs for the first time since pre-corona. The 200 SMA is at about 4 euros, which is exactly where we are now after the massive drop. Keep this in mind if you’re thinking about investing in TUI. It’s a high-risk bet right now, one that I’ve taken the long side in. First at the end of March, and now doubling down with the stocks emission (I’m exercising my rights, and buying in, plus I bought an addition 242 shares on Friday after the drop using some dividend funds that were unused). I’m not sure it’ll hold, but I’m counting on it. My confidence shouldn’t matter to you, though, but if you’re in any way interested in technicals, and you’re already planning to go long TUI for a longer timeframe, this is a perfect buy point to do so.

    Good luck all, and I hope my little Q&A answered some of your questions that seemed to me to have gone unanswered.

  • J
    TUI Baltics are canceling flights tomorrow because of sanctions,
  • A
    Tui anticipates that summer holiday bookings this year will be close to pre-pandemic travel levels 🚀
  • D
    why is everyone panicking? TUI will raise 1.1 billion euros by selling new stock, to reduce a debt pile, at a price of 2.15 euros each in a rights offering. Shareholders will receive 1 right for every share they held on 8 october. For every 21 rights they can get 10 shares at the price mentioned above. The closing date for the rights issue is 21 october, so expect a short term drop. TUI did the same earlier this year and the price dropped shortly before returning to "normal" price (taking dilution into consideration).
  • M
    Can someone explain to me like I'm five years old what these stock purchase rights really are. I own TUI stock from before the dilution was decided. Today I've received these purchase rights that - as far as I can tell - mean I'm offered 25 new shares for each 29 I already own, at a price of 1,07 euros. Is that really correct? How does that work? How do I actually buy those stocks?
  • s
    I'm bullish on this one. What other travel stocks are you in at the moment?
    I've before had NCLH and also looked at other cruise ship stocks, however I sold due to the large share price increase of NCLH and because I thought it didn't match the fundamentals (yet).
    But looking for other alternatives to spread my risks!
  • O
    Oby Mar
    Whoever had tui new shares rights, did you already pay for the new shares?