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Authoritative Independent Monthly Share Selections Using Technical & Fundamental Analysis

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Hostelworld

March 2021

Investing in shares may lose you all or some of your money. Past performance is no indication of future performance. Some of the shares recommended here may be small company shares, which can be relatively illiquid and hard to trade and this makes such shares more risky than other investments.

  • Epic Code:
  • HSW
  • Price:
  • 76p
Hostelworld, the online booking platform for hostels, announced that as a result of global travel demand remaining muted throughout Q4 due to the pandemic, net bookings in 2020 were 20-22% down, in line with previous guidance. Average booking value contracted throughout due to bed price deflation. Its saving grace was net cash of €18.2m, albeit down from €29.4m at 30 June, with monthly cash burn of €1.7m. Hostelworld is now more upbeat, citing the roll-out of approved vaccines and perhaps this will sway lenders to give it the new €30m facility that is being sought. Albeit not the most robust of the travel recovery plays, Hostelworld is one I will stick with for now. ...

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With small companies there is an above average degree of risk compared to buying blue chips. Please be aware that we have not assessed the suitability of any of these investments for you. The newsletter simply states a personal view and diarises the editor’s investment decisions. Please speak to your stockbroker or other qualified individual to ascertain whether any of these companies mentioned would form useful additions to your own portfolios. Past performance is no indication of future success.

All material on this website is protected by copyright. You may use Information retrieved from the www.scsw.co.uk website for your own personal non-commercial use which means that you may not sell or copy this information to any third party without prior written consent. ISSN 1358-183X