copenhagenBA

I sadly own a lot of this stock via my pension plan. It trades like a dog ... Wondering whether to cut my losses or just forget and hold till better times..

HFHFFlyer

Personally, I would hold on. The market has basically priced in everything we can reasonably expect for this year, and some. Holding long positions in blue chip aviation equities is actually not a bad bet on one of the vaccines proving effective and life getting back to normal a bit quicker.

ocprodigy

I mean this is probably coming out of the lowest point in aviation history, why would you sell at a low?

Raffles

For many years in the early 2010s, the price was around 140p. Even at 220p today it is substantially above where it was 7-8 years ago when the economic outlook was a lot rosier than it is now. Arguably it should be nearer Ł1.

copenhagenBA

well theres no good reason why this couldn’t also fall another 30-40per cent also if second wave hits, vaccine/therapeutics slow.

Swanhunter

It got up to 350p a few weeks ago...now back to 225. Yes it could go lower, but equally good news on vaccine/treatment and a V shaped recovery could see a move up. Unless you need the cash now, why sell?

rockflyertalk

The OP may have perfectly valid personal reasons for wanting or possibly needing to sell imminently, however I think most would agree to hold off and wait. I’d give 6-12 months and then have another think. More results will be released, aviation market will know a lot about the future, passenger numbers will hopefully be far better than April numbers, at least and that’s really not difficult to beat. As it’s well known and well versed on here IAG are financially very astute.

HIDDY

Although I know sod all about such things your ''hold till better times'' seems like a good idea to me.

The missus always loses out when she sells soya...I just tell her to forget it and keep smiling!!

matticusbond

IMO, I would hold on. Unless you believe that IAG/BA are gonna go bankrupt or you need the liquidity, there's not much point in taking that loss. Given the pent up demand for travel, the airline industry will make a recovery (albeit likely a very slow one), and this stock will make up for lost ground. There are, of course, some potential headwinds on the horizon, including a second wave of covid that sends parts of the world back into lockdown. But there are also potential tailwinds including vaccination.

Personally, I'm actually buying into IAG at the moment. They're a very financially savvy org so I believe they will navigate the situation relatively well (and capitalize well on easing travel restrictions), and I'm also optimistic that come early 2021 a vaccine will be available and the price will rebound as demand and consumer confidence return.

Mike P

The other thing to consider is whether moving the money into other equities or funds that might either be safer or offer a more realistic prospect of a gain in your timescale is a good plan.

bmibaby737

depends how far away you are from retirement. Unless you’re retiring in the next 2 years i’d hold. It’s only a dog currently because of the situation and it was building a lot of value beforehand.

Will100

I’m doing the same and have been using This slump in price to ‘lower my average’.

Shame as I nearly sold up at Ł6+ early this year but didn’t need to in the end. Win some lose some, hence the merits of a balanced portfolio!

golfmad

I am no investment adviser but this was the point I was going to post too. It all depends on whether you're taking a short, medium or long term view and you don't indicate that in your posts. This is the crucial bit of information. If you're in your mid 30s there's a good argument to make to keep it. If you're in your early 60s you may not have the time to wait for a market recovery.

LondonElite

OP, you may have access to this as well, but the lastest two research reports I have have a 12M target price of 250p (Goldman Sachs, 7 May) and 370p (Credit Suisse, 11 May). Make of that what you will.

Geordie405

I'd agree with bmibaby737 and golfmad in that one of the crucial factors is how close you are to retirement. If you're within 5 years of that date then I'd have hoped you'd have already moved most of your investments to less speculative / risky funds. I still have almost 20 years to go until I can hang up my keyboard and mouse, so plenty of time to weather any market volatility.