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Aer Lingus

  • 29-09-2010 3:00pm
    #1
    Comordha
    Closed Accounts Posts: 562 ✭✭✭


    There's something brewing here gents, share price has broken through its 70-80cent range that was holding it back for a while and is now in a 100-105cent range. Speculation starting to build up about the Govt's stake and a possible takeover if it were sold. The slots are still of great value to others.


Comments

  • #2
    Angus MacGyver
    Registered Users, Registered Users 2 Posts: 329 ✭✭Angus MacGyver


    I bought back in Dec 09 for 0.59c and am up 85% as of today. Needless to say im happy but also concerned, dunno where it will end. I dont want to surrender my gains having taken a battering of the last few years.

    Are they overvalued or undervalued?


  • #3
    Comordha
    Closed Accounts Posts: 562 ✭✭✭Comordha


    I think they are reaching fair value. Ryanair has rallied ex dividend, I think there's a general trend with many airline stocks. They were completely hammered when the market collapsed and are an obvious recovery play. The increased speculation regarding Aer Lingus future and a possible merger / takeover has spiced this share up. I've also noticed that Ryanair have layed off them in recent weeks / months, I wonder is this because Aer Lingus have accepted defeat to Ryanair in the price war and O'Leary accepting such a defeat declaration. O'Leary might also be sneekily saying to himself, if they are no longer a competitor of mine and I have written off that investment, and I just gave away €500 mill in cash to shareholders, and my growth prospects are looking more limited, and I will never be permitted by law to acquire the airline, then maybe it might actually be a positive to allow the AL share price to increase. It will be a handy couple of hundred million if this sentiment continues. SP up to €1.18 as I speak.


  • #4
    Angus MacGyver
    Registered Users, Registered Users 2 Posts: 329 ✭✭Angus MacGyver


    Hope this "work to rule" by staff ends quickly


  • #5
    Comordha
    Closed Accounts Posts: 562 ✭✭✭Comordha


    I don't as then the airline can relieve these ineffecient employees of their duties. Like the several previous work to rules, strikes or whatever you want to call them it will have no bearing on the share price.


  • #6
    ranger4
    Registered Users, Registered Users 2 Posts: 1,370 ✭✭✭ranger4


    Have they hedged their fuel price for next year? Oil expected to possibly hit 100 usd next year, If hedged I beleive SP could reach 1.50e by next summer, Will wait and try to top up at 0.85-90 cent.


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  • #7
    Comordha
    Closed Accounts Posts: 562 ✭✭✭Comordha



    http://www.independent.ie/business/irish/aer-lingus-pays-euro25m-to-employee-share-trust-2469983.html

    This was totally aimed at cleaning the books for a takeover. I expect an approach very early in 2011, possibly from Walshey and BA.


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