BRFR Cake Stop 'breaking news' miscellany

[briantrumpet]

As reported on the 10th June.

Sorry, missed that.

 

[Pblakeney]

Sorry, missed that.

So did most. Or it was disregarded as Eeyore. 😉

 

[PurplePenguin]

I guess we'll see in real time what private equity does to a successful company. I'm rather glad (in more ways than one) that I've changed to Eurostar for my regular journeys here.

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I don't think this shows an understanding of finance. I have no idea what they plan to do with EasyJet, but whether a company has debt or not does not affext it's overall value with a few qualifications.

 

[Ian H]

Very easy as the Moroccan Govt opened the gates. Apparently very few are still there. There is no route from Ceuta into mainland Spain without a valid asylum claim.

Nothing was allowed to interrupt Throne Day on July 30th, an annual ritual in which Morocco’s elite swear allegiance to the king. Not even the deaths of more than 140 migrants who were crushed as 72,000 people surged towards the Spanish exclave of Ceuta. The security chiefs who should have dispatched reinforcements were just 16 miles away, attending the ceremonies at the royal palace in M’diq. Too busy bowing and hand-kissing to answer their phones, they left border posts all but abandoned. Officers who had spent months keeping would-be migrants at bay had been redeployed to guard the festivities. Only after the ceremony ended, five hours later, were they sent back. As images of desperate Moroccans flashed around the world, state television remained transfixed by the pageantry of the elite. For the makhzen, as Morocco’s ruling establishment is known, protocol trumps all.
[The Economist]

 

[First Aspect]

I don't think this shows an understanding of finance. I have no idea what they plan to do with EasyJet, but whether a company has debt or not does not affext it's overall value with a few qualifications.

Seriously PP?

The concern is that they will try to get more for less, before exiting in 5 years with a shoot ton of cash, leaving behind a dry husk, Iike most other PE backed companies.

I would expect them to immediately cherry pick ideas from other bare bones carriers around the world, such as Ryanair or Spirit in the US, renound for dreadful passenger experiences and hidden charges, and also take some decisions on less profitable routes. They may also hoover up one or two other budget carriers thereby reducing choice (albeit this is made less likely if they've taken on debt already).

 

[PurplePenguin]

Seriously PP?

The concern is that they will try to get more for less, before exiting in 5 years with a shoot ton of cash, leaving behind a dry husk, Iike most other PE backed companies.

I would expect them to immediately cherry pick ideas from other bare bones carriers around the world, such as Ryanair or Spirit in the US, renound for dreadful passenger experiences and hidden charges, and also take some decisions on less profitable routes. They may also hoover up one or two other budget carriers thereby reducing choice (albeit this is made less likely if they've taken on debt already).

None of that changes fundamental capital structure theories which was the point I waa makong

https://en.wikipedia.org/wiki/Modigliani–Miller_theorem

 

[First Aspect]

None of that changes fundamental capital structure theories which was the point I waa makong

https://en.wikipedia.org/wiki/Modigliani–Miller_theorem

You've answered a point no one was making, correctly.

For example, it's not correct that the corriolis force causes water to drain in the opposite direction in the southern hemisphere. Totally unarguable and you simply don't understand physics.

 

[PurplePenguin]

You've answered a point no one was making, correctly.

For example, it's not correct that the corriolis force causes water to drain in the opposite direction in the southern hemisphere. Totally unarguable and you simply don't understand physics.

Someone posted a tweet about the additional interest. I said this wasn't relevant. You argued with yourself about a point I didn't make.

Happy for you to call that a win if you like. I'm tired.

 

[First Aspect]

None of that changes fundamental capital structure theories which was the point I waa makong

https://en.wikipedia.org/wiki/Modigliani–Miller_theorem

I think most humans would interpret BTs post as reflecting the effect on him as a passenger, rather than bemoaning the financial effect on the company that will now be experienced by it's poor new owners.

I doubt human beings, other than bankers, really give a rat's bottom about the enterprise value that the new owners hold, either.

So no, not really.

 

[PurplePenguin]

I think most humans would interpret BTs post as reflecting the effect on him as a passenger, rather than bemoaning the financial effect on the company that will now be experienced by it's poor new owners.

I doubt human beings, other than bankers, really give a rat's bottom a out the enterprise value that the new owners hold, either.

So no, not really.

And my point was that it would have no impact on him all else equal. What they may do as new owners, of course, may have an impact, but that is the case irrespective of how its financed.

 

[First Aspect]

And my point was that it would have no impact on him all else equal. What they may do as new owners, of course, may have an impact, but that is the case irrespective of how its financed.

You are effectively trying to argue that the scorpion will not sting the frog.

PE could start to run EasyJet as a not for profit, and soak up additional costs for using biofuels.

That's not going to happen either. But it could and therefore I am correct .

 

[PurplePenguin]

You are effectively trying to argue that the scorpion will not sting the frog.

PE could start to run EasyJet as a not for profit, and soak up additional costs for using biofuels.

That's not going to happen either. But it could and therefore I am correct .

I told you already you can chalk up your straw man argunent as a win.

I just think it is a shame that I can't correct something so widely misunderstood.

 

[briantrumpet]

And my point was that it would have no impact on him all else equal. What they may do as new owners, of course, may have an impact, but that is the case irrespective of how its financed.

You're quite correct, in that it'll have little effect on me, unless they completely gut EasyJet in order to make a quick financial killing, and a lot of the passengers decide to flood Eurostar.

But your faith in PE and the long term future of companies that previously had been doing a perfectly fine job for millions of customers is touching. The record, so far, suggests that your faith might be misplaced.

 

[PurplePenguin]

You're quite correct, in that it'll have little effect on me, unless they completely gut EasyJet in order to make a quick financial killing, and a lot of the passengers decide to flood Eurostar.

But your faith in PE and the long term future of companies that previously had been doing a perfectly fine job for millions of customers is touching. The record, so far, suggests that your faith might be misplaced.

I expressed no such faith. I complained about the stick being used.

 

[briantrumpet]

I expressed no such faith. I complained about the stick being used.

In which case, FA is quite right about why I posted it: which is that the outlook is probably not good for its customers or workforce.

FWIW, ignoring the environmental cost, to my eyes it's been a pretty awesome business success, providing a very high level of service with a decent reputation for customer service (within its budget airline remit). I struggle to see how the change in ownership model is going to improve on that, and pretty much all PE experience is that 'PE' is the fancy term for asset stripping, via the debt-loading route.