Good Idea to Buy Ryanair Shares?

stainluss

Ryanair plans to be the biggest airline in Europe within 5 years and offer a €10 service to the US. In your opinion, would it be a good idea to buy shares (~€400 worth) at the moment or in the coming weeks?

Time Magazine

Not really. There's doubt over whether O'Leary's transatlantic endeavours will be under the Ryanair name at all, and I would have serious doubts about the planned take-over Aer Lingus if it were even approved by the Commission. And for €400 you're looking at about 10% of that going in fees and charges straight away, so you'd need a return of more than 10% to make anything back, and that'll be taxed.

Not worth it tbh.

stainluss

The Economist wrote: »

Not really. There's doubt over whether O'Leary's transatlantic endeavours will be under the Ryanair name at all, and I would have serious doubts about the planned take-over Aer Lingus if it were even approved by the Commission. And for €400 you're looking at about 10% of that going in fees and charges straight away, so you'd need a return of more than 10% to make anything back, and that'll be taxed.

Not worth it tbh.

Thanks for your advice.. i am relatively new to this world and hadn't considered this

Allah Hu Akbar

The Economist wrote: »

Not really. There's doubt over whether O'Leary's transatlantic endeavours will be under the Ryanair name at all, and I would have serious doubts about the planned take-over Aer Lingus if it were even approved by the Commission. And for €400 you're looking at about 10% of that going in fees and charges straight away, so you'd need a return of more than 10% to make anything back, and that'll be taxed.

Not worth it tbh.

Thought you don't pay tax unless it's over 10,000 profit?

ranger4

Allah Hu Akbar wrote: »

Thought you don't pay tax unless it's over 10,000 profit?

you will pay stamp duty of 1% when buying irish shares allong with cgt if you earn over the cg limit.

newbie123

Im thinking bout buying shares in ryanair i was thinking about it a few months ago and wish i bought them then as they have gone up since then,
They seem to be going up in the world may take a while but i dont think it would be a terrible investment.
I might wait a while before i buy them just in case they have another one of their accidents that makes worldwide news

BendiBus

newbie123 wrote: »

another one of their accidents that makes worldwide news

Oh, you mean local tabloid news! :rolleyes:

Allah Hu Akbar

ranger4 wrote: »

you will pay stamp duty of 1% when buying irish shares allong with cgt if you earn over the cg limit.

I meant when selling!

Do you tax on shares if you earn less than 10,000 profit?

ranger4

Allah Hu Akbar wrote: »

I meant when selling!

Do you tax on shares if you earn less than 10,000 profit?

If income from trading is classed as capital gain then yes tax is payable if gain is over cgt limit.

Audacious

Add that to the fact that they dont pay dividends, it doesnt add up all that well.

Lplated

O'Leary has said a few times that he thinks a large number of airlines will go bust across europe, leaving more business for those, like ryanair, that are left. Even with the declining market because of the recession ryanair is well poised to benefit from the misfortunes of some others.

Same as any other share, if OP does invest, should'nt put that much of his overall wealth into any one share, but as investments go, i think ryanair isn't a bid tip.

pocketdooz

Attached is some information that might help people make some sort of a real decision on Ryanair.

As you we all know, revenue and EBITDA have grown rapidly since 2000 on the back of new routes and increasing passenger numbers. However the growth story is slowing down considerably. Routes are being scaled back and new routes are being cancelled.

As you can see from the attached sheet, revenue is still growing but at a steadily declining rate (35% in 2003 to 21% last year and I would imagine it will fall further still next year) EBITDA margins are also plummeting from 41% in 2003 down to 26% last year. The drop in oil prices has been very beneficial for Ryanair and if oil stays low (guessing game) they might benefit.

The have approx. €2.2 billion in cash and €1.9 billion in long-term debt which in this environment is re-assuring to say the least.


These are the things you should be looking at and focusing on when thinking about investing in a company, not the fuzzy things that you cannot define and that don't really matter (imo)

I don't like the fact that they don't pay a dividend

*EXCEL SHEET ATTACHED*

.

Feyy

I would wait another while, markets are so volatile still, plus i'm expecting some it to get worse soon.

pocketdooz

Feyy - Why would you wait a while ? For the volatility to decrease ? How bad / Why do you think markets are going to get worse ?



.

david....

bump

Tech3

What was the reason for the drop today?

patbrady877

I know of a lot of people who like this stock a lot - and made money trading it. Have a look at the price over the last 18 months- if you buy somewhere in the low 3's and sell anywhere around 3.70 you would have made money each time. If you are looking to trade in ranges- they are a great stock - if you are looking for something to buy and hold for a couple of years, id suggest one of the banks- they would appear to be more of an upside over a couple of years.

Other concern is oil prices - they are quite low at the moment, and upside oil would have a negitive effect on the price. Also the Aer Lingus deal doesnt look it will happen at the moment, this has cost them a fortune....

oconnot5

pocketdooz wrote: »

Attached is some information that might help people make some sort of a real decision on Ryanair.

As you we all know, revenue and EBITDA have grown rapidly since 2000 on the back of new routes and increasing passenger numbers. However the growth story is slowing down considerably. Routes are being scaled back and new routes are being cancelled.

As you can see from the attached sheet, revenue is still growing but at a steadily declining rate (35% in 2003 to 21% last year and I would imagine it will fall further still next year) EBITDA margins are also plummeting from 41% in 2003 down to 26% last year. The drop in oil prices has been very beneficial for Ryanair and if oil stays low (guessing game) they might benefit.

The have approx. €2.2 billion in cash and €1.9 billion in long-term debt which in this environment is re-assuring to say the least.


These are the things you should be looking at and focusing on when thinking about investing in a company, not the fuzzy things that you cannot define and that don't really matter (imo)

I don't like the fact that they don't pay a dividend

*EXCEL SHEET ATTACHED*

.

Hey Thanks for the great information here. I'm interested in this stock and wondering do you have any updated information for the excel file attached? Thanks for your help

Jim2007

oconnot5 wrote: »

Hey Thanks for the great information here. I'm interested in this stock and wondering do you have any updated information for the excel file attached? Thanks for your help

This is a thread for 2009!!! If you are that interested in the stock I'd suggest you do your own research....

Jim.

radioactiveman

Every $1 rise in the price of crude adds more than $1.6 billion (£1 billion) to aviation's annual fuel bill

=> link

OK it's for the whole of aviation but how is mass transatlantic flight going to work if oil hits $150 a barrel??? or for that matter to bulgaria etc

DR_HOUSE

Can anyone tell me where can you buy Ryanair shares? Or any shares for that matter? Thank you kindly for answers!

belcampprisoner

airlines are not good buy with high oil prices

it has 3.5 billion in debt

DR_HOUSE

Thank you for the info. But if I would like to buy any shares, where would be the best to try? Is there a website where I can buy, or how does it work? Thanks!

the groutch

AIB have a share dealing option via their 24 hour online banking.

DR_HOUSE

Unfortunately I have no account on AIB, as they have too high charges. was thinking maybe trough a website or something...

To Need a Woman

Well I have always considered Ryanair to be a reliable company, and have had good experience with them investment-wise. The last time I cashed out with them was in 2012. Would like to get in again. They're very high now, but hard to say if they're over valued or not!

Funny to think, I've actually never flown with them

world_weary

To Need a Woman wrote: »

Well I have always considered Ryanair to be a reliable company, and have had good experience with them investment-wise. The last time I cashed out with them was in 2012. Would like to get in again. They're very high now, but hard to say if they're over valued or not!

Funny to think, I've actually never flown with them

not one analyst predicted they would reach the current highs and JPM downgraded them around october of last year

personally i think they are richly valued at the moment , easyjet is a good bit cheaper but then again ryanair is a superior company and has a better brand

reading back on this thread and to think ryanair was only three euro less than six years ago

being a good stock picker is a great gift , one i wish i had myself

BrokenArrows

All airlines have had a boost in share price over the past 6 months due to the dramic drop in fuel prices.

If the fuel stays low then I'd say they're a good bet

world_weary

BrokenArrows wrote: »

All airlines have had a boost in share price over the past 6 months due to the dramic drop in fuel prices.

If the fuel stays low then I'd say they're a good bet

might already be priced in and most airlines are not buying fuel at a price proportionate to the cost of a barell of oil today , they hedge in advance so may be paying based on a $75 per barrel price

ryanair is an exceptionally well run airline , its very richly valued right now however

Cute Hoor

Very interesting reading back over these old topics. Ryanair certainly has had a good run of late. Ryanair have hedged 90% of their fuel funding for FY16 at $93 - not great, obviously will be looking to hedge at a far lower price for FY17