Holidaybreak
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Management has been buying this one all the way down from around 700p, which on the face of it possibly doesn’t make them savvy investors. But the intensity of the last flurry makes us believe there is something the market is missing.
The Market Insider Says
Sir Bob Ayling has been around the block a bit, not least as the former boss of British Airways. So we were always interested when he started buying stock in Holidaybreak, where he is chairman.
While the directors were active after a lacklustre set of prelims towards the end of last year (1,2,3), there was nothing of the intensity of what we have seen in the last two days.
Ayling and chief executive Carl Michel significantly bolstered their holdings, while the two divisional directors and one senior non-exec also waded into the market.
The latest swoop was timed to coincide with a reasonably upbeat assessment of trading, with the company’s newly formed education business firing on all cylinders.
For those of you who don’t know Holidaybreak, this is a firm that used to specialise in cheap and cheerful camping escapes to the South of France. Since then the group has expanded into London theatre breaks, short trips to the Continent and adventure holidays for kids through its PGL division. At around 10 times earnings, the shares are reasonably cheap – which won’t have escaped Ayling’s notice!
Our advice: Buy at 600p and set a stop loss of 480p.
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