Aeroflot is a bad investment company

Aeroflot Group reported on Monday its financial results for the first half of the year. They look like that old meme with a white and blue dress — everyone sees either positive or negative in the report. What did we see there, let’s figure it out

Aeroflot’s revenue for the first half of the year amounted to 195 billion, and then, how to look. If we compare with the results of last year, we will see an increase from 149 billion.However, if we look at 2019, we will see a 37% drop relative to those data.

At the operational level, Aeroflot is also unprofitable this half (-15 billion) and last year (-46 billion), and in 2019, operating profit of 14 billion.

There was a loss in all these three periods: 1H2021 = 27 billion, 1H2020 = 58 billion, 1H2019 = 8 billion.

Are the numbers positive?

But do you know what is the most interesting? Aeroflot is now 60% more expensive than in 2019. Like this? — you may ask if the stock price is ramming the bottom.

The point is that the price is a reflection of the company’s price only if the number of shares does not change significantly. Aeroflot, on the other hand, diluted the value of its shares by increasing their number in October from 1 million to 2.4 million. Thus, the last 100 rubles on the chart is 41 rubles now.

Before investing in Aeroflot at the current price of 170 billion, ask yourself the question, what do you want to get at all? Profit, dividends? If the answer is yes, then Aeroflot should be bypassed.

In any case, always analyze securities and buy and sell only in accordance with your strategy.

And if there is no strategy and trading plan