TCG – market takes off

TCG (Thomas Cook) issued a trading update today. Some bullet-point notes:

  • further cost reductions identified
  • better working capital management
  • UK Turnaround on track
  • Non-core disposals expected to realise £100m – £150m

It notes its outlook as:

Following the positive trends outlined in the Q1 IMS trading continues to be robust and summer trading is progressing well with improved margins. The outlook for the full year continues to be encouraging, underpinned by the on-going delivery of the Group’s Transformation actions

It is worth mentioning that TCG is taking technology seriously. Its website is of course very important. Not mentioned explicitly is that in-store customer terminals are likely to be installed. TravelMole reported on 07-Dec-2012:

Thomas Cook will unveil a new flagship concept store in Leeds before Christmas, elements of which it may roll out to some other stores if they prove popular.


The new 130 square metre store enables customers to research and book their holidays directly with one of 25 travel consultants at a newly-installed “advice bar”, or online using in-store tablets.

It looks as though TCG want to increase the buzz in the shops:

Our new store will be more Apple than travel and uses technology and techniques championed by iconic, high-tech brands to place our customers at the heart of the experience; allowing them to choose how they access information and dictate the level of assistance they receive from us.

The Market has reacted very positively to the news, and shares are up 15% at the time of writing, despite the Footsie being down 0.6%.

I wrote about TCG yesterday, and given the results reported today and the market reaction, it looks like this one is going to go a lot higher over the medium- longer- term. Don’t be afraid to buy the dips. We have a massive gap to fill to 125p:

Bear in mind that I am a complete n00b at technical analysis, so no doubt some of the more experienced gizzard-squeezers will say I’ve drawn the lines all wrong.

Will it be able to crack 100p today? We shall see.



About mcturra2000

Computer programmer living in Scotland.
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