Track the companies that matter to you. It's FREE! Click one of these fan favorites to get started: Apple; Google; Ford.



Thomas Cook's Troubles Continue

Don't let it get away!

Keep track of the stocks that matter to you.

Help yourself with the Fool's FREE and easy new watchlist service today.

LONDON -- Thomas Cook Group  (LSE: TCG.L  )   reported a quarterly loss this morning, with revenue for the three months ended June 30 down 6% to 2,294.8 million pounds. After closing at 16.75 pence yesterday, shares in the company fell as low as 16 pence this morning, before briefly rebounding up to 16.32 pence at the time of writing.

The struggling travel group's recent plight was underlined with the trading statement announcing that underlying operating loss for the quarter was 26.5 million pounds, compared to a profit of 20.1 million pounds in 2011. However, the poor seasonal weather was blamed, as well as a later booking pattern, and as such the company is starting to see strong summer sales pick up.

The company has sought to increase liquidity by completing the disposal of HCV Hotels, which generated proceeds of some 58 million pounds, as well as the aircraft sale and leaseback, which will generate proceeds of around 189 million pounds.

Strategies such as this offer shareholders a glimmer of light, as they offers assurances that the company is not just being run into the ground. Indeed, a change of management can herald a new dawn, and Harriet Green joined on July 30 as group chief executive, with Michael Healy appointed group chief financial officer on July 1.

Commenting, Green said: "My initial focus is to review our businesses, quickly establish priorities and develop a clear plan to reinvigorate Thomas Cook. The Group has been through a difficult period, but much has been achieved which has strengthened the balance sheet and improved liquidity."

If the change in management is successful, and the turnaround plan remains on track, then the shares could end up being somewhat of a bargain at their current price. However, the travel group's troubles have been well-documented, and as such they are likely to be considered only as a falling knife for ambitious investors.

If this investing strategy appeals you, then you may well benefit from The Motley Fool's special report "Ten Steps To Making A Million In The Market". Simply click here to get it delivered to your inbox -- best of all, it's absolutely free!

Investing is by no means easy in today's uncertain economy. That's why we've published "Top Sectors Of 2012" -- our guide to three favorable industries. This free report will be dispatched immediately to your inbox.

Further Motley Fool investment opportunities

Sam does not own shares in Thomas Cook. The Motley Fool has a disclosure policy.
We Fools may not all hold the same opinions, but we all believe that
considering a diverse range of insights makes us better investors. Try any of our Foolish newsletter services free for 30 days.

Read/Post Comments (0) | Recommend This Article (2)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Compare Brokers

Fool Disclosure

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 1969571, ~/Articles/ArticleHandler.aspx, 10/24/2016 9:06:39 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Today's Market

updated 2 days ago Sponsored by:
DOW 18,145.71 -16.64 0.00%
S&P 500 2,141.16 -0.18 0.00%
NASD 5,257.40 0.00 0.00%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes