One of the values that may be more interesting to take positions at this time is the AIG area company, since it is positioned around 4,50 euros per share. A price that in the opinion of some financial analysts could be considered as adjusted to your current expectations. But after having developed a clear downtrend from 7 euros and that has led it to trade at one of its lowest levels in recent years. A fact that can lead a good part of the small and medium investors to take positions in the value.
In any case, this is a listed company that will depend on two very important factors. On the one hand, how Brexit is going to develop in the coming months and, on the other hand, the evolution in the crude oil price. Both variables are not very beneficial for the interests of the airline and is what has caused many investors to exit their positions very quickly in the last six months of the year.
While it seems that their prices are cheap, no less true is that this company is really conditioned by the two factors mentioned above. Based on them, there is no doubt that their actions will move in one direction or another and it will be the trigger for success or not in your operations in the equity markets from now on. So far, things are not looking good for IAG shareholders. To the point that it is one of the most bearish values of national equities.
IAG: in clear downtrend
At the moment there is not one thing clear and that is their titles are immersed in a downward movement of great significance. The key lies in the fact of when this selling current will stop to enter with greater guarantees of success in their positions. So far it has moved in a very wide range that goes from 4 to 8 euros per share. Can both supports be broken? This remains to be seen in the coming weeks and in any case it is now in the lower part of the channel, which makes operations more dangerous from now on.
In addition, it cannot be forgotten that IAG will depend a lot on what may happen with the exit of Great Britain from the European Union. In this sense, we cannot forget that this is one of the listed companies with the worst performance in recent months. With very important falls that have ruined the expectations created among small and medium investors. At the moment, there are no notable facts to think that the situation has changed compared to the previous months.
With a dividend of 8%
One of the positive aspects of IAG is that it distributes among its shareholders one of the most generous dividends of the national equities. With an interest rate close to 8%, and above sectors such as electricity or banking. It could be one of the reasons to trust this value for the next few years. But the big question that the airline offers is whether it will be in a position to match this payment in the coming years. All the data does not suggest that this will not be the case. If not, on the contrary, all the conditions are met for there to be a substantial cut in this shareholder remuneration. With very important falls that have ruined the expectations created among small and medium investors.
While on the other hand, if this occurs reduction in dividend there is a risk that its investors flee in search of other more profitable securities for this concept. It is another risk that you have to take when opening positions at IAG. And something that is very likely to happen at some point from now on. In particular, depending on what happens with the exit of Great Britain from the European Union. In this sense, it is one of the securities that offers the greatest doubts in the national equity markets. And this is an aspect that without a doubt you will have to value it with great rigor.
With almost no competition in the Spanish stock market
Another aspect that you should assess about its behavior is that it has almost no competition in the national continuous market. Just Vueling It is the other airline that is listed on the Spanish stock market and this encourages all the capital of small and medium investors to be concentrated in this passenger transport company. Unlike what happens in the financial markets of the United States where the offer offered by the sector is very relevant. It is another small one that you should take into account to assess whether or not it is worth opening positions in a company with these special characteristics.
On the other hand, it is also highly conditioned by the evolution of passenger traffic and above all because of the tourist flow that exists in the world. These data are of very positive moments for the sector and should not cause problems for the conformation of their prices. If not quite the opposite, that is to say to boost its valuation in the stock market upwards. But we are facing a very special stock market value that can give us more than one surprise from now on due to its special characteristics and its excessive dependence on crude oil in the financial markets.
Support at 4,50 euros
One of the keys for its future evolution is whether it will stop its declines in the stock market at the important support that it currently has at 4,50 euros per share. Because in fact, if you exceed it, there are many possibilities that even, and in the worst case, you can go to levels around two euros. But the big question that the airline offers is whether it will be in a position to match this payment in the coming years. All the data does not make us suspect that this will not be the case. If not, on the contrary, all the conditions are met for there to be a substantial cut in this shareholder remuneration.
In relation to relevant events numbers 279458, 279589, 279600 and 279915, the Company announces that it has completed the purchase, amortized and canceled 89,44% of the Convertible Bonds due on November 17, 2020, with ISIN XS1322536332 (the “Bonds”) for an aggregate nominal amount of € 447.200.000. Finally, the Company has been able to buy and cancel two (2) Bonds less than those initially communicated in relevant events numbers 279600 and 279915 due to the fact that the holders of said Bonds have not presented them in time to be repurchased. As a consequence, the total nominal amount of the Bonds that have been acquired and finally canceled has been reduced by € 200.000.
Acquisition of new aircraft
International Airlines Group (IAG) has placed an order for eight Airbus A321XLR aircraft for Iberia and six for Aer Lingus, plus 14 options. Both airlines are among the launch customers for these additional long-range short-haul aircraft. The first deliveries are scheduled for 2023.
The A321XLR will be used to expand long-haul fleets both Aer Lingus and Iberia. Each aircraft will be equipped with Economy and Business class cabins including fully reclining seats. They will also feature the same inflight entertainment, connectivity and ambient lighting as the latest generation long-haul aircraft. These aircraft will allow Aer Lingus to operate new routes beyond the east coast of the United States and Canada. The company has eight A321neo LRs under operating lease with the first delivery scheduled for this summer.
Evolution of passenger transport
More than 432,6 million passengers used public transport in June, 1,1% more than in the same month of 2018, according to the latest data from the National Institute of Statistics (INE). Where it is shown that urban transport increases 0,7% in the annual rate and interurban transport decreases 0,1%. Within the interurban, highlights the 10,0% increase in air transport.
The rate of change of number of public transport passengers of June compared to May is? 7,0%. To contribute to the analysis and interpretation of the data, the following graph shows the evolution of the monthly rate of the number of users of public transport in recent years.
While on the other hand, with respect to special and discretionary transport, the latest data from the National Institute of Statistics confirm that more than 53,5 million users use special and discretionary transport in June, which represents an increase of 5,4% in annual rate. The number of passengers in special transport rises 5,8% and exceeds 29,1 million users. Within this, the school increased by 5,9% and the work by 5,8%. For its part, discretionary transport grew 4,8% compared to the same month in 2018, with more than 24,4 million travelers.