Saturday, June 20, 2020

Sabr stock: CFRA stock report

June 20, 2020

Introduction


It is important for me to look into Software as a service company like Sabre. I like to get more educated about SABRE, and then I can make informed decision as an investor.

My positions


I invested $500 share on June 2020.

300 share 10.42      06/08/2020
200 share   8.315    06/18/2020

CFRA stock report

May 12, 2020 10:24 am ET... CFRA Maintains Hold Opinion on Shares of Sabre Corporation (6. 69***): Our 12-month price target, down $1 to $8, is based on an EV/EBITDA multiple of 9.7x our ‘21 estimate, and aligned with its closest travel peer (Amadeus). We widen our 2020 estimate to a loss per share to $1.72 from $1.24 and reduce 2021’s EPS to $0.09 from $0.52. SABR prints a Q1 loss per share of $0.29 vs. a $0.34 gain, better than consensus by $0.03. Revenues dropped to $659M but beat their previously revised range provided in April by $6M. Travel Network bookings were down 45%, driven by higher cancellations, which resulted in a $60M headwind for Q1. We still expect SABR to recognize an incremental $105M in future cancellations, which further weighs on revenues, but suspect overall levels have stabilized since mid-April. Following SABR’s recent capital raise, pro-forma liquidity stands at $1.7B, enough to cover potential monthly cash burn ($80M), in our view. We will be keeping an eye on if (and for how long) SABR’s net leverage covenant (4.5x stated in latest 10-Q) is suspended. /David Holt

Actionable Items


I should take quick action, on June 19, 2020, I should sell all 500 shares at price 8.91 in the morning, and then buy back at price around 8.1 with 500 shares. So I can have some gains to cover the loss of first purchase on June 8, 2020.

I also should take a look daily return using Yahoo finance, and then take action to time the market, and then reduce the amount of loss.


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