Investor Nikolai Grove Sold From Flyr Last Week – Stock Down Monday

Investor Nikolai Grove Sold From Flyr Last Week – Stock Down Monday

Private investor Nikolai Grove owns two million shares in Flyr through its wholly owned subsidiary, Oren Basem. Last week, he chose to sell entirely.

“Of course, I was initially positive about Flyr because I thought SAS and Norwegian had lost so much money for so many years that they wouldn’t compete on price with Flyr, but it seems they did anyway,” he says.

On Monday, Flyr’s stock fell, ending more than 20 percent lower. This happened after I informed the company Sharp deficit in the third quarterWhich was the first quarter of the company’s operations.

At the same time, Flyr said it will raise NOK 250 million in new capital by issuing shares to existing shareholders, a so-called rights issue.

– You might just have to walk away

Earlier on Monday, DNB Markets provided an analysis of the airline. Analysts Ole Martin Westgaard and Simen Aas The news the company provided on Monday is believed to be a sign that the business model is not working. At the same time, analysts described Flyr as a lost project.

Investor Grove believes it is too early to conclude whether the company has a well-performing business model.

– It’s too early to conclude whether or not this business model works, but they chose to raise money, and as the deficit accelerates it may be more difficult to raise money later at a reasonable rate, he says.

At the same time, Grove is hesitant to wonder if it’s a good time to trade Flyr shares after today’s sharp price drop.

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So if Flyr’s stock drops further, there’s not necessarily any sign of buying, you might just have to walk away, he says.

Increasing infection rates

Grove thinks it seemed like a good decision to sell last week, but he maintains that the main reason he’s selling is that the number of coronavirus infections is now on the rise.

– I sold out of the company mid last week. The reason is that infection numbers are now on the rise, and even if the authorities do not reach a complete lockdown again, it will hamper the desire to travel and will hit the airline industry hard again, he says.

When he bought shares in Flyr, it appeared that the reopening of the community was in full swing, and he predicted that air traffic would once again rebound sharply.

“I thought we’d get a real boost in air traffic and that it would be profitable for once to be an airline shareholder, but the reopening came much slower than we thought,” Grove says.

Monday reports NIPH reports that 198 coronary heart disease patients are hospitalized. This is the highest number since April of this year. FHI also reports that the trend of infection is currently on the rise. (Terms)Copyright Dagens Næringsliv AS and/or our suppliers. We want you to share our cases using a link that leads directly to our pages. All or part of the Content may not be copied or otherwise used with written permission or as permitted by law. For additional terms look here.

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Dalila Awolowo

Dalila Awolowo

"Explorer. Unapologetic entrepreneur. Alcohol fanatic. Certified writer. Wannabe tv evangelist. Twitter fanatic. Student. Web scholar. Travel buff."

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