Ryanair

neil.p.b

Down to 3.18 from 4.05 just under 5 weeks ago. It looks like a good price. Finding it hard to make up my mind though with the ash cloud lingering. If it continues we might see sub 3 euro. Anyone have any opinions on a good entry price?

RizzoJR

neil.p.b wrote: »

Down to 3.18 from 4.05 just under 5 weeks ago. It looks like a good price. Finding it hard to make up my mind though with the ash cloud lingering. If it continues we might see sub 3 euro. Anyone have any opinions on a good entry price?

whats current and forecast EPS???

neil.p.b

Current EPS for year end 03/09 was 7.1 cent. Expected EPS for year end 03/10 is expected to be circa 14 cent

Winty

Ash along with the rise in fuel and unemployment accross Europe.

I dont know but its not looking good long term for Ryanair, Oil will never be cheaper it can only go one way

RoadKillTs

I like Ryanair. I know the airline industry is not the ideal place to be investing in these days due the rising prices in oil, downturn in tourism, competion e.t.c but the way I look at it some airlines will succeed over others and I really believe Ryanair will be one to succeed.

They just seem to understand the lost-cost airline business better that most. A lot of airlines are either going under, merging, scaling back or having serious issues with staff and operational costs while Ryanair are not having any of these issues. In fact Ryanair are constantly growing, creating new bases and adding more routes plus their passenger numbers and load factors are up most months.

From a loss last year to a projected profit of 350 million (not taking in account the loss from the Ash fiasco) is prity impressive.

Having said all this there are things that worry me about Ryanair such as the subsidies they recieve.

The fact the MOL might be leaving soon and also I heard that they are considering setting up a long haul service using a separate airline are more reasons for concern.

All in all I think they are a good business but I wish they copied ALL of South West Airlines business model and not just parts of it.


p.s Wouldn't be too bothered about the ash.

Also should the projected EPS not be about the 20 c mark?

neil.p.b

Your point about MOL leaving is my biggest concern. There are a lot people who would dump there shares if this happened and i think it's becoming more likely that he might. But even at that, i think if it does happen the price will be close to 4euro at that stage and any drop would not put your buy-in price of 3.10 at risk.

Not sure about EPS for year ended 03/10, i got .14 from memory, it could be closer to .20 as you said. But full results are announced in June i think anyway.

I'm VERY tempted to jump in today at 3.10

RizzoJR

neil.p.b wrote: »

Your point about MOL leaving is my biggest concern. There are a lot people who would dump there shares if this happened and i think it's becoming more likely that he might. But even at that, i think if it does happen the price will be close to 4euro at that stage and any drop would not put your buy-in price of 3.10 at risk.

Not sure about EPS for year ended 03/10, i got .14 from memory, it could be closer to .20 as you said. But full results are announced in June i think anyway.

I'm VERY tempted to jump in today at 3.10

do you fear they will shoot up to e4 very soon?

surely there are higher potential, lower PE, dividend paying stocks
you could buy as alternative.

Raskolnikov

Winty wrote: »

Oil will never be cheaper it can only go one way

Nonsense.

You only need to take one look at the price chart for oil to see that the the fundamental factors of supply and demand have little baring on the price per barrel.