On Beach group (LON:OTB) due to issue a trading update tomorrow.
The founder recently made a huge purchase of 2.8m shares at 88p, and it looks to me that the sp may be turning up again after a long downtrend.
I’ve taken a few this week as the price put in a higher low and broke a downwards trend line, just above the key moving averages.
Could be poised for a good run, if we get a positive update tomorrow.
This is one of Boons holdings as well and I think he has been positive for a while.
I bought in a bit early, but based on my personal experience of seeing so much holiday travel with full planes throughout the summer and an ongoing upbeat view on people going abroad I felt that they were showing signs of becoming underpriced.
This is also supported by the airlines which all seem to be reporting some very full numbers Jet2 (LON:JET2) & easyJet (LON:EZJ) for example.
Whilst their share count has gone up by around 20%+ over the last few years it looks to me that they are heading back towards their pre-covid level financial performance which gives me some confidence that over the longer-term these should re-rate.
Having the founder invest such a significant amount is also a big positive - just wish I had held back on my timing - I'd already be up 20% ish
I guess the main risk is one of a harder landing and people cutting back on holidays, but this doesn't seem to have happened to date and I suspect that if people do cut back it will be to potentially downgrade their budgets rather than not go abroad at all.
We shall find out in half an hour.
