Go Ahead Group

[VFRHawk]

Hi all,

First post here. I'm a very small time investor, looking to invest in companies where the stock value is depressed and likely to recover as I try to build a portfolio.

To that end, I put some money in to Go Ahead group last year when they were stripped of the Southern Rail franchise. That obviously dropped their stock price quite substantially, but as rail is actually a small part of the business - they're predominantly a bus company - I felt they would likely bounce back.

Happily, having held on to the stocks since, they now have and with interest in bus companies apparently spiking at the moment, I find myself with a few shares that have suddenly rocketed in value.

My question for people is whether the feeling is that the bus sector will continue to see further growth in the short term - and therefore I should hold on to these shares - or if this is an excellent moment to sell them as they've probably done as much growing as they're going to - and in fact that bubble may burst quite soon and see them start to slide back in value?

I'd appreciate peoples opinions.

Graham

[tjh290633]

My impression in recent years is that companies in the travel business are worth avoiding. I did buy Stagecoach in 1989 but got rid of them within 10 years as they had such a low yield. I have been following the bus companies for a long time and their adventures with running railway companies have not been great. Arriva was taken over, now Stagecoach has succumbed and Go Ahead has two rival suitors. The COVID pandemic has hit them. Go Ahead seemed to be the one to go for, but is well down from peak levels.

That leaves First Group and National Express. The more I see of First Group the less I like them. Clapped out poorly maintained buses do not inspire me. NEX look to be the best of a poor bunch. I don't fancy any of them.

TJH

[Alaric]

Happily, having held on to the stocks since, they now have and with interest in bus companies apparently spiking at the moment, I find myself with a few shares that have suddenly rocketed in value.

Go Ahead has been the subject of a takeover approach.

https://www.theguardian.com/business/20 ... er-kelsian

Nothing directly due to the valuation of bus companies

[VFRHawk]

From what I'd read, there have been a number of bus companies approached for buyout as they were viewed as a good option with the increased attention on the environment, and the cost of fuel for private vehicles.

Graham