Today we are on the way down. After two weeks of improvement in its share price amid talks of a potential take over from Tui Travel, Thomas Cook shares today fell by 5.75p as that talk has died down.
The share price rise was also attributed to a 'buy' recommendation by Investec which lead to the share price doubling in value. Investec have noe changed their stance to 'hold.' James Hollins of Investec said:
'Our positive stance was based on the prediction that Thomas Cook would survive in its current form, with
- 1. a supportive banking syndicate,
- 2. the short-term appointment of a new chief executive [now expected by the end of March], 3. operational turnaround opportunities, and
- 4. the likelihood of asset disposals. However, the shares now offer less than 10% upside to our unchanged 30p price target and we therefore move from buy to hold.'
One further issue is if the banks decide to re-coup monies owed as they too seek to balance their own bottom lines. It's not all rosy just yet.
