Credit deflation and the reflation cycle to come (part 2)

[nirvana]

9 minutes ago, Tdog said:

Ive a fucken fortune sat in the bank, almost enough to buy a shite 3 bed terrace in southern England ... but dont really fancy putting any of it into this stock market.

 

You need to buy a Golf GTI then visit a casino and go to the roulette wheel...

[Solzhenitsyn]

11 minutes ago, headrow said:

Apache Corporation in the US results just out. 

Apache Corporation (NYSE: APA) today announced multiple actions being taken in response to the current oil price environment. The company reduced its 2020 capital investment plan to a range of $1.0 billion to $1.2 billion from a previous range of $1.6 billion to $1.9 billion. Over the coming weeks, the company will reduce its Permian rig count to zero, limiting exposure to short-cycle oil projects. Activity reductions are also planned in Egypt and the North Sea. In Suriname, upon the conclusion of operations at the Sapakara West-1 exploration well, the company will proceed, as planned, to a third exploration prospect.

 

Additionally, Apache’s board of directors has approved a reduction in the company’s quarterly dividend per share from $0.25 to $0.025, effective for all dividends payable after today, March 12, 2020. The company will use the $340 million of cash retained annually from the dividend reduction to further strengthen its financial position. Apache has ample liquidity through its $4 billion undrawn revolver and considerable flexibility to manage the $937 million of bonds maturing between February 2021 and January 2023.

“We are significantly reducing our planned rig count and well completions for the remainder of the year, and our capital spending plan will remain flexible based on market conditions,” said John J. Christmann IV, Apache’s chief executive officer and president. “We are also further reducing operating and overhead costs as we continue to implement our corporate redesign program, which began in the fall of 2019. These decisive actions will benefit Apache as we navigate these challenging market conditions.”

 

---

I think Apache will soon be drawing their revolver alright, but not in the way they had hoped! 

[TheCountOfNowhere]

20 minutes ago, Tdog said:

Think the landowners beat you to it.

They are our tort mps 

[headrow]

Carnival shutting down all its Princess Cruises  for the next 60 days. Share price down another 20%.

 

Staggering that you can pick these up for £12 a share. £42 a year ago.

[Barnsey]

Holy moly was not expecting Go Ahead to hit my 1200 buy ladder so soon! Down 29% today! No funds left to deploy 

This is it?

[Lightscribe]

Well I thought it would be the over leveraged debt that would cause the global economy to roll over rather than a world ending virus (that would be just silly)....

But at least I was right on the time-frame.

[sleepwello'nights]

56 minutes ago, DurhamBorn said:

It will be interesting to see how CBs respond.Cash flow is key at the minute.You have to feel for the travel industry.The likes of Tui are very well ran,but nothing they can do when flights banned.Il be glad if only a couple of stocks im buying go under  

Will governments not give support to the large players when specific sectors are badly disrupted?

When the pandemic subsided and the economy recovers, as it will, then surely they realise that steps must be taken to keep the infrastructure in place.

Assuming a bad case scenario that the CFR is 5% that means that the economy will need to return to 95% of existing capacity. There may be behavioural changes that people will travel less so perhaps overall capacity will not need to be as high as previously but governments can’t let entire sectors collapse.

It is isn’t war, yet. 

[nirvana]

4 minutes ago, Tdog said:

Like this man.  

https://www.youtube.com/watch?v=zGCdBsOIKYA

funny that, I went for black even though I once had a red Golf GTI 

I was thinking more like this guy 

 

[headrow]

4 minutes ago, Barnsey said:

Holy moly was not expecting Go Ahead to hit my 1200 buy ladder so soon! Down 30% today! No funds left to deploy 

Hold it in my ISA , fully invested now for this tax year.

The drop today has sent my portfolio into the red , just got to sit and watch it go down , no bullets left. Go Ahead profit down 20% , share price down 30%. Every company that misses estimates this next quarter is going to get pummelled.

StockMarketWire.com - Bus and train operator Go-Ahead group said slightly reduced tits its full year expectations as cost pressures and adverse weather in its regional bus business offset a uptick in revenue in the first half of the year. The company also warned that travel patterns were likely to be impacted in the second half of the year.

For the six months ended 28 December, pre-tax profit fell to £49m from £61m on-year as revenue grew 2.3% in the period. 

Bus operating profit was down 3.4% at £45.3m reflecting 'strong performance in London & international division mitigated a weaker regional bus result, the company said. 

'As a result of lower than anticipated profitability in our regional bus business in the first half of the year, combined with the impact of adverse weather in recent weeks, our overall expectations for the full year have reduced slightly,' it added. 

[Sugarlips]

FTSE100 now down well over 7%, if it does this again tmw we are into the ‘4’ handle, hard to imagine this 6 or even 2 weeks ago

[headrow]

Just now, Sugarlips said:

FTSE100 now down well over 7%, if it does this again tmw we are into the ‘4’ handle, hard to imagine this 6 or even 2 weeks ago

 S&P futures showing a 7% drop at the open.

[kibuc]

G/S ratio, here we go again...

 

[nirvana]

hmmm go ahead down 29% eh, should I dip my toe in the water???? 8.4% divi.......nah bollox 

I know there has been talk about the $ index going down but the £ has had a right rogering this month as well.....

[nirvana]

9 minutes ago, kibuc said:

G/S ratio, here we go again...

 

yeah interesting, are they going to roll out the 'I needed to cash in my gold to cover my index margins' excuse again???

[nirvana]

I just remembered I've got a Silver ETC, doh, I've just checked and the performance of it is bloody shit!!! 

@BearyBear I remember you called it with the Gold/ETF divergence call, well done, have you got a graph of this 'divergence'?

[DoINeedOne]

Intu warns it could go bust after reporting £2bn loss

[Democorruptcy]

2 hours ago, Barnsey said:

Cineworld -46.47% JUST TODAY

[nirvana]

HOLY shit bags everything is going to shit including Gold and Silver!!! They never said that in the movies 

[S Brule]

[Popuplights]

Dow down 7% trading halted.

[TheCountOfNowhere]

Its carnage 

 

Foxtons 11%

Countrywide 20%

Petsimmon 10

Barrat 10

Iag 10

Easyjet 10

Intu 20

Metro bank 23!!!!

Tui 19

[Cosmic]

Small Shell purchase filled at 1176...

Its looking bad out there, wonder how long it can run.

[TheCountOfNowhere]

Finablr...... 64%

 

Wtf

[BadAlchemy]

It is incredible to watch this playing out. Thankfully I'm diversified enough and was not investing anything I can't afford to lose anyway. Still have 50% of the cash pot left to allocate (and it would not end up being 20% of everything I have anyway) to put into this once there is a bottom somewhere. The way some of these prices are looking I am now beginning to include my toilet roll stash as a valuable part of my portfolio !

[Barnsey]

I have a feeling that today, Thursday 12th March 2020, will be a day for the history books