The· TUI (LSE: TUI) Stock prices were terrible in 2020. I feel that more problems may occur in 2021. Government announcement A UK resident arriving in the UK is being asked to quarantine a hotel.
TUI stock price and 2020 issues
As I write this, TUI’s share price is close to 341p per share. This is nearly 65% lower than the January 2020 level. The breakthrough in the Covid-19 vaccine has hit the entire market. As a result, TUI’s share price rose up to 546p per share.The· FTSE Overall, it didn’t react as much as the price increases TUI experienced.
But since that height, TUI has once again dropped by nearly 40% to its current level. However, there are a few things to worry about when it comes to TUI’s stock price and investment feasibility.
First, I believe that stagnation in demand at the time of business resumption can cause a significant rise in stock prices and can overestimate TUI. Second, it owed more debt to keep the lights on, which is not a good omen. Finally, it raises funds by issuing new shares worth around € 545 million. I prefer this approach to new debt, but the issuance of new shares dilutes existing shareholders who have never been with me in a company in TUI’s position.
That said, TUI has the potential to recover after 2021. Alongside airlines, it offers package travel and is still the largest travel and tourism company in the world. I believe it will survive the pandemic and return to normal at some point due to its diverse offerings and reach.
2021 FTS EAIM Opportunity
FTSE AIM Incumbent Fever tree (LSE: FEVR) 2020 was great. I think we can maintain this momentum after 2021 and it will be an attractive outlook for my portfolio. Unlike TUI’s share price, FEVR’s share price is currently trading nearly 70% higher than it was before the crash. At the beginning of 2020, it traded at 1391 pence per share, but now you can pick up the stock at 2,320 pence.
Fevertree is highly liquid and has very low debt, causing a pandemic. I think this will be in a good position after 2021. Levels have risen by nearly 40% in the US and Europe, as reported in the latest information on summer trading. My confidence in Fevertree is related to ambitious expansion plans that are already well underway in the United States and beyond, based on the sales levels reported last year. Although the pandemic has slowed progress a bit, Fevertree still believes that 2021 could be another good year, making it an attractive option.
Despite my optimism, there are still risks. Its stock price has been at its highest level in more than two years. It may not rise further or reach its previous highs. In addition to this, overseas expansion is not as easy as it sounds. The pandemic slows down and can even hinder its progress in the long run.
FEVR on TUI
Its ongoing issue, which is closely related to TUI’s stock price and pandemic, is why I’m on the lookout for development but don’t buy stock now.
Fever-Tree is a business that is rich in cash, low in debt, increased dividends in September, and is growing despite the recession.here Another option in the same sector that could make me a passive income Too.
While it’s available: You’ll discover what we consider to be the top growing stocks in the next decade.
And the performance of this company is really great.
2019, It returned £ 150a million To our shareholders Through buybacks and dividends.
We believe that its financial position is about as solid as what we have seen.
- Annual revenue since 2016 31% increase
- One of its senior directors in March 2020 Loaded 25,000 shares – £ 90,259 worth of position
- Cash flow from operating activities has increased by 47%. (Operating margin is also rising every year!)