 Welcome and in this video we're going to go through 2E AG and whether it's a buy or not on the stock market I personally hold some stock on this I'm currently up around 12-13% it did dip a little bit recently I'll go into why that is temporary and it's not going to be a long-standing thing but I'm still up overall and there is a lot of potential with this stock as we start to get back to normal and people start traveling more people start going on holiday more there is a lot of potential for this stock probably within you know the next four six nine months so with that in mind I think it's best to get in now a lot of people got in really early where it was really really cheap this stock and it has gone up gradually over time recently and it's something to think about here with this stock and we're going to go around that what we're going to go through in this video is some information on 2E AG why I think that it's a good solid stock for the either a mid-term player for you know for the recovery and then to sell your stock and make the profit or a long term player in terms of over a longer term so we'll go through that we'll go through some research on 2E and we'll go through some information on where I think it might be going in the future and a lot of our information and research here do off to make make sure I mention this obviously I'm not a financial advisor do your own research but I'm just giving you my research and my journey on this I am a business teacher in my daily life but I'm by no means an expert in the stock market and this is just my own research but it's a different perspective for you to look at so let's get into 2E and look into this okay so a good point about 2E and it's what's in there investor presentation here it's just an excerpt I don't want to do one of those videos where you just go through the whole investor presentation because I just want to point out some of the key areas here of that and so first of all it's got an integrated business model okay so got a lot of holiday experiences a lot of markets that an airline so it says here 21 million customers 150 aircraft leading market shares okay of 20 to 40 percent so it's got a huge market share within the within the travel industry so that is massive it's good to bet on some of the some of the top companies within whatever industry and 2E is a big brand name in this particular industry in terms of loads of experiences there and another point there is a 70% profit pool which is obviously very important there so it's got a combination of a strong customer base and differentiated content within their offerings there which is a good combination to have also as a global approach as well so just look through this integrated business model with differentiated products offering along the whole value chain so this means that they can upsell they can they can sell to customers more and you know it's not just the holidays it's in terms of a package and in the travel so they're able to upsell their and products and that helps with profitability strong brand reputation across all source markets so as you get a strong brand reputation that builds of customer loyalty and there's going to be that customer loyalty he's going to pay off when things start to reopen and the first thing comes to mind it might be 2E as a someone to go with for a you know some sort of travel after things get back to that's normal so so they're going to be faced on people's mind if not some of the other big big players so they stand to get to gain from more travel that's going to be happening in the near future customer ownership so digitalized product upselling exactly double diversification across at markets and airlines so it's a holiday experiences so it's diversified in a range of areas within the travel industry and we always talk about diversification in stocks you know having a diverse stock portfolio and not to put all eggs in one basket try to have a good amount of stocks well even as a business is it on a business level it's good to have a diversified approach into how you're selling your products and and the types of products you're selling because that will increase the amount of income streams that you actually develop is if you have a diversified approach so in terms of what obviously selling it in terms of airlines holiday experiences so they've got a diversified approach which is going to improve profitability and also help in maintaining sustainability for the business economic sustainability and we've got strong yields and occupancy driven by access to broad customer base as well okay so it's got an integrated business model which is really important and so some of the positives okay so as a strong brand as we went through that really very strong band brand huge in terms of market share high reputation overall you know plenty of customers that they've already sold to and you know it's trying to get repeat customers there another area of a positive obviously you diversified market so it's it's in loads of different types of markets within the travel sector which is really really important enough point as vaccines open more people will travel okay that that goes without saying so as we get more people traveling then there's going to be more money spent spent on travel and that's obviously going to benefit the travel companies and then you got high potential growth in the mid to long term so there's two ways you can play you can maybe just kind of sell on the recovery you know kind of within the next six months and sort of sell and take some short term profit but also you could hold it for long term for maybe more potential gains but either way whatever you do there is a lot of potential with this stock to make a decent amount of profit there so another thing that I wanted to kind of take an excerpt from from the investor presentation is this global approach here so global realignment program to drive to ease strategic initiatives okay so ultimately they have gone through a bit of a bit of a tough time in terms of travel the travel industry they haven't been making as much profit as they were hoping to make obviously recently so they have been in a bit of trouble but but they have kind of managed the finances a bit better and have reduced costs reduced capital intensity and drive their digitalization so ultimately they're making decisions that are trying to reduce costs so they don't bleed too much cash in the current moment but also they're staying prepared for when things do reopen and travel does reopen and and more people are traveling to the point that they can then you know expand and actually build a greater customer base and obviously create profitability from that yeah so reduced costs so it says here major tasks and organizations across the group so trying to create an integrated approach targets to permanently reduce our overhead cost based by 30 percent across the group and you got reduced capital intensity in terms of reduction of investment levels right sizing of airlines and order book diverse divest address and non profitable activities so they're looking at the activities that they have got seeing which are the most unprofitable and trying to adjust that essentially so it's good that they're continuing to review this because ultimately the profitability of the business part is partly what matters to investors so it's good that they're looking into this but you know this is in terms of now as we re as we reopen more as more people travel then as I said there would be more potential now the stocks did go down recently and there's many reasons as well as the main reason for this should I say so and this is part of it I think so it's an agreement with private investors banks and general federal government on additional package of 1.8 billion in financing so that's what happened recently this are the stocks shut up and after that actually there was a big increase but also there was a slight decrease recently but remember we're looking in the mid to long term okay but it's good that they've got a financial package there to survive you know if they can survive obviously within the next six months which is what they absolutely can do then there's a lot of potential there in terms of when things do reopen for profitability so as long as they survive and they have this these funds then that is overall in the long term good for investors in the short term there's been a bit of volatility stocks going up and down within 2e but in the long term it will pay off okay so this is the current kind of price at the mid says at 460 2 there so it is quite cheap in consideration to what it used to be at near a year ago in terms of around a thousand there so there is potential for huge gains even if it doesn't get up back to pre-covid levels which it probably it would be a take take a while to do that that's not going to happen overnight so to speak when when things do reopen that'll be a gradual process for them to do that but even if it gets back closer close to those levels then there is a lot of potential for a lot of gains here so I think in your portfolio this is something to consider I would try get it at around for like on a dip always buy the dip as we always say but hopefully this is some useful information about about 2e and maybe something that you could consider add into your portfolio if you can like the video that'd be much appreciated helps out in the youtube algorithm and subscribe if you're new to the channel and i'll try and bring you some more more videos in the future as well okay so thanks for watching and hopefully see you in the next video