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$20.24 flight centre travel group limited

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Phillipho

580 Posts.

37

27/04/20

14:56

Post #: 44281294
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Originally posted by Kit67: ↑

How did you come up with $14 as a target? FLT are bleeding cash and have decided to retain their higher earners who will now insist on higher base salaries now that FLT is unable to pay commissions (you don't sell, you don't get paid; simples). They slashed about 50 pct of their workforce but, at a guess, have only reduced employment costs by between 35 and 40 pct. Lease arrangements on existing properties mean that savings from store closures will take months to come through, so in the meantime the bleed will continue at a higher pace than originally anticipated. And against this, sales are almost nil, meaning that they are having to prop-up cashflows by delaying repayments to clients. Hardly the sort of thing that is "brand building". International travel and cruises - 80% of their net income - will not resume until 2021, and won't hit pre-Covid levels until 2022 at earliest, and the net margins simply won't sustain that. $14 implies dividends (as it is more than 2x NTA), and I think it will be at least 3 years before they can pay anyone back, let alone shareholders. So I am curious - why $14?

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great analysis mr rational, markets are irrational though. it's a game of Tetris not a game of chess.

Last edited by Phillipho: 27/04/20

FLT Price at posting: $9.52 Sentiment: Hold Disclosure: Held
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0 Great analysis

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(20min delay)
Last $20.24		Change -0.110(0.54%)		Mkt cap ! $4.474B

Open	High	Low	Value	Volume
$20.50	$20.50	$20.10	$39.19M	1.939M

Buyers (Bids)

No.	Vol.	Price($)
2	5000	$20.22

Sellers (Offers)

Price($)	Vol.	No.
$20.29	15	1

View Market Depth

No.	Vol.	Price($)
1	2000	20.190
1	200	20.180
3	1849	20.150
2	3200	20.110
2	4000	20.100

Price($)	Vol.	No.
20.290	15	1
20.300	1750	1
20.400	1000	1
20.500	2000	1
20.600	50	1

Last trade - 16.10pm 09/08/2024 (20 minute delay)

FLT (ASX) Chart