Monday, 28 November 2011

Thomas Cook share price bounces back

Shares in Thomas Cook have bounced back this morning after news over the weekend that the company have received additional financial assistance of £100m.

Shares were as low as 9p on Tuesday but were the biggest riser on the FTSE 250 index this morning of the 30p. Anyone who better that the firm would be rescued at that point and bought shares would have tripled their money. It is believed that short-sellers in the market who targeted Thomas Cook made gains of more than £60m in the last five months as more than 85% has been wiped off the value of the company.

Despite the slight games, analyst Nick Batram of Peel Hunt believes that the shares are best avoided -

"As expected the banks have stepped up to the plate, and this is to be welcomed. However, a recapitalisation of the business is still likely to be painful for equity investors. Trading was challenging enough, but this could have been further exacerbated by the events of the past week. We continue to believe that the shares are best avoided."

Everyone here at Alihoco hopes that Thomas Cook remains steady for a long time.

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