first_img Image source: Getty Images. “This Stock Could Be Like Buying Amazon in 1997” I’m sure you’ll agree that’s quite the statement from Motley Fool Co-Founder Tom Gardner.But since our US analyst team first recommended shares in this unique tech stock back in 2016, the value has soared.What’s more, we firmly believe there’s still plenty of upside in its future. In fact, even throughout the current coronavirus crisis, its performance has been beating Wall St expectations.And right now, we’re giving you a chance to discover exactly what has got our analysts all fired up about this niche industry phenomenon, in our FREE special report, A Top US Share From The Motley Fool. Simply click below to discover how you can take advantage of this. What next for the easyJet share price as Sir Stelios opens fire Our 6 ‘Best Buys Now’ Shares Renowned stock-picker Mark Rogers and his analyst team at The Motley Fool UK have named 6 shares that they believe UK investors should consider buying NOW.So if you’re looking for more stock ideas to try and best position your portfolio today, then it might be a good day for you. Because we’re offering a full 33% off your first year of membership to our flagship share-tipping service, backed by our ‘no quibbles’ 30-day subscription fee refund guarantee. G A Chester has no position in any of the shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.center_img Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge! G A Chester | Tuesday, 31st March, 2020 | More on: EZJ I would like to receive emails from you about product information and offers from The Fool and its business partners. Each of these emails will provide a link to unsubscribe from future emails. More information about how The Fool collects, stores, and handles personal data is available in its Privacy Statement. The easyJet (LSE: EZJ) share price has come under intense pressure during the coronavirus-induced stock market crash. Trading north of 1,500p immediately pre-meltdown, it’s below 600p as I’m writing.And as if easyJet didn’t have enough on its plate, its founder and largest shareholder, Sir Stelios Haji-Ioannou, has launched an attack on the directors. This came in the form of a letter to the board published on his personal website. What are investors to make of the letter and the company’s current situation?5G is here – and shares of this ‘sleeping giant’ could be a great way for you to potentially profit!According to one leading industry firm, the 5G boom could create a global industry worth US$12.3 TRILLION out of thin air…And if you click here we’ll show you something that could be key to unlocking 5G’s full potential…State aidIt was only in January that easyJet’s chief executive Johan Lundgren was moaning about the government’s Flybe rescue. He said: “We do not support state funding of carriers … taxpayers should not be used to bail out individual companies.”Just a couple of months later, and he’s found himself having to plead for government support, warning easyJet and other airlines could go bankrupt without it. Not comparable with the Flybe rescue, he’s argued, as easyJet is not seeking “bespoke” state aid.Haji-Ioannou contends the “main risk to survival of the company is the expected £4.5bn of payments to Airbus between 2020 and 2023 … for the future delivery of 107 aircraft which the company CANNOT afford.”He wants easyJet to serve a termination notice to Airbus, and adds: “I do not support the current calls by Johan Lundgren for government loans. If we don’t pay AIRBUS we don’t need government loans. It would be an abuse of taxpayers’ money to obtain loans to pay AIRBUS … We should raise equity … in order to replenish the current losses.”LiquidityThe grounding of easyJet’s entire fleet, announced yesterday, has removed significant cost. And the company said it’s continuing “to take every action to remove cost and non-critical expenditure from the business at every level.”It’s also reached agreement on furlough arrangements for its cabin crew. Effective 1 April 2020, for a period of two months, crew will receive 80% of their average pay through the government’s job retention scheme.Despite this, and having recently reported net cash of £1.6bn and a $500m revolving credit line, the company said it’s in “ongoing discussions with liquidity providers.”What does it mean for investors?Clearly, there’s considerable uncertainty about the future. We don’t know how long the impact from Covid-19 will last. We don’t know if easyJet’s ongoing discussions with liquidity providers will be successful. And we don’t know how dilutive an equity fundraising would be.My Motley Fool colleague Harvey Jones recently wrote about the idea of buying easyJet shares: “It’s a wild, desperate punt, and I don’t want to take that sort of risk right now.”Ordinarily, I’d agree with that assessment. However, we’re in extraordinary times. Governments are doing everything possible to help businesses stay solvent. I think lenders are likely to be relatively tolerant, particularly with companies whose underlying businesses are strong, like easyJet. Similarly, such businesses with a supportive major shareholder like Haji-Ioannou, are also likely to be more successful in raising fresh equity.I wouldn’t want to own too many stocks in easyJet’s position. But, on balance, I rate it a speculative ‘buy’. A small stake and a willingness to participate in a rights issue may be the right recipe. Enter Your Email Address See all posts by G A Chesterlast_img

What next for the easyJet share price as Sir Stelios opens fire

Leave a Reply

Your email address will not be published. Required fields are marked *