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Authoritative Independent Monthly Share Selections Using Technical & Fundamental Analysis

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Thomas Cook - Four directors buy shares

July 2014

Investing in shares may lose you all or some of your money. Past performance is no indication of future performance. Some of the shares recommended here may be small company shares, which can be relatively illiquid and hard to trade and this makes such shares more risky than other investments.

  • Epic Code:
  • TCG
  • Price:
  • 140p
While shares in package holiday group Thomas Cook have come off their high, they remain well above the 38p at which we originally tipped them in February 2013. First half results (the seasonally weaker six months to 31 March) showed pretax losses reducing by £30m to £187m, helped by cost savings of £83m, which bring cumulative total savings to £277m. The results could have been better but for political turbulence in Egypt and weak trading in the UK, where average selling prices fell 3%. The summer season is currently 60% sold, which is similar to this time last year, while a further £150m of savings have been identified for its “Wave 2†cost cutting program, which calls for a further £400m savings by 2018. Broker M ...

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With small companies there is an above average degree of risk compared to buying blue chips. Please be aware that we have not assessed the suitability of any of these investments for you. The newsletter simply states a personal view and diarises the editor’s investment decisions. Please speak to your stockbroker or other qualified individual to ascertain whether any of these companies mentioned would form useful additions to your own portfolios. Past performance is no indication of future success.

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