InvestorQ : There is collapse news for Thomas cook, do I sell the stock or hold?
manisha Kolvenkar made post

There is collapse news for Thomas cook, do I sell the stock or hold?

Answer
image
Sam Eswaran answered.
2 years ago
Follow
I suppose you are referring to Thomas Cook India. Over the weekend, Thomas Cook of UK filed for bankruptcy. The company had been under stress for quite some time and finally, it shut shop over the weekend. The sad part was that being the oldest and one of the largest travel companies in the world, it left lakhs of tourists and holiday travelers stranded. 

Regarding Thomas Cook India, the stock did correct sharply on Monday. This was despite the company top management clarifying that it was in no way related to Thomas Cook UK. In fact, Thomas Cook had a major stake in the company but had totally exited Thomas Cook India in 2012 and the stake had been acquired by Fairfax of Canada. Currently, Fairfax, run by Prem Watsa, holds almost 77% of Thomas Cook India with the rest of the shares with other investors.

However, traders and investors were worried about the brand linkage and that the bankruptcy of such a large name would have a rub-off impact on the Indian company too, although it is not a subsidiary any longer. It is better to sell out of the stock for now till the dust settles and you can always look to enter the stock again at a future date. This is the second travel agency that has gotten into trouble after Cox & Kings and you may better play this sector cautiously.
19 Views

image
Roshni Hegde answered.
2 years ago
Follow

178 years old British tour company Thomas Cook has declared bankruptcy. The company reported canceling over 600,000 global vacationers today on 23rd August 2019.

The company points the reason for the fall down is Brexit's uncertainty for not supporting the company's crunch. The debt crunched company apologized to the public for the drastic slowdown in the services.

While I read the stock of Thomas Cook and analyse the share price has shown a negative outcome. Today it has touched at Rs. 153.45 nearly. I would recommend more to sell than hold or buy the stocks.
It is estimated for stocks to turn penny stocks soon after the declaration of bankruptcy.

14 Views

image
Aswini Chikkodi answered.
2 years ago
Follow
British tour operator Thomas Cook (UK) has declared bankruptcy yesterday night i.e 22nd September 2019.
This is not in relation to Thomas Cook (India) Group. Thomas Cook (India) Group has not been impacted by the collapse. Thomas Cook (India) Group is an entirely separate entity since 2012; Thomas Cook UK do not have any stake in Thomas Cook (India) Limited.
13 Views

image
2 years ago
Follow
Thomas Cook India is held by Fairfax and is no way connected with Thomas Cook UK. If there is a price fall, rather buy as the new is not going to affect the Indian entity in any way financially. Clarification is also published on the Thomas Cook India website.
13 Views