Thursday, 23 February 2012
Shares in Thomas Cook rose by 30% on Wednesday to the grand sum of 17p per share. The rise came after analysts Investec Securities said that investors were underestimating the brands survival.
According to Investec, the future is also said to look brighter as the position of chief executive is soon to be filled and the balance sheet improved from the sell off of several assets.
Yet despite this boost in confidence from Investec, they do go on to be cautious over the future as families struggle to afford a holiday and customers are cautious over the safety of Thomas Cook. Investec also pointed towards consumers increased ability to DIY their own holidays and to save significant costs which go with package holidays.
It seems as though we would not be talking about a 4p rise in share prices unless that price is ultra low and such a difference creates a major percentage increase and headlines. On the same day, TUI, who are faring much better than Thomas Cook saw it's shares fall by 5p to 202 per per share. Pretty fickle stuff!
Posted by Tom Warsop at 20:25