IAG

The IAG share price performance, relative to peers, remains very poor.

Such a divergence, in an otherwise generally strong sector (driven by higher prospective returns to float, in turn due to higher yields) strongly suggests some ongoing market scepticism over the mix of provisioning/business interruption insurance litigation, and Greensill exposure.

The market may be manic, but it is wise enough in its collective wisdom, and as such the weak momentum signals are worth paying attention to.

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Not a trade for the fainthearted, and not one for us. Which is a little annoying, because there’s not a huge amount of value on offer out there (despite Value being much more favourably priced than Growth) and IAG has, historically, evidenced itself as a reasonably high quality company…

…with good cost and claims control, and consequently a reasonably higher combined operating ratio.

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This document is based on information available at the time of publishing, information which we believe is correct and any opinions, conclusions or forecasts are reasonably held or made as at the time of its compilation, but no warranty is made as to its accuracy, reliability or completeness. To the extent permitted by law, neither Aequitas nor any of its affiliates accept liability to any person for loss or damage arising from the use of the information herein.

Please note that past performance is not a reliable indicator of future performance.

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