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Any thoughts on Ryanair

  • 11-04-2016 10:02am
    #1
    Registered Users Posts: 18 Waltan


    Any thoughts as to why Ryanair is not performing. Shares at 13.10 today from a high of 15.40. I know they were a bit overvalued but this is getting crazy.They posted decent results so I bought at 13.50 and again at 13.30 last week strongly expecting a rebound. Is it just general market drag?


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Comments

  • Closed Accounts Posts: 12 ✭✭✭ heavy_sleeper


    Waltan wrote: »
    Any thoughts as to why Ryanair is not performing. Shares at 13.10 today from a high of 15.40. I know they were a bit overvalued but this is getting crazy.They posted decent results so I bought at 13.50 and again at 13.30 last week strongly expecting a rebound. Is it just general market drag?

    the stock is not remotely cheap for an airline , easyjet ( admitedly an inferior company with an inferior brand ) is 50% cheaper , the american airlines are also way cheaper despite doing just as well as ryanair right now in the case of alaska airlines and south west

    airlines traditionally dont have high PE,s , ryanair doubled from november 2014 to november 2015 , it could very easily go nowhere this year

    its a terrific company but its stock market performance could not be described as anywhere close to underperforming by any measure


  • Registered Users Posts: 630 ✭✭✭ Johnny Jukebox


    Their hedging gamble on aviation fuel has cost them heavily on the back of the oil price drop.

    There was an article in the Phoenix magazine a couple of months back which discussed the SP in detail.


  • Closed Accounts Posts: 2,379 ✭✭✭ newacc2015


    Their hedging gamble on aviation fuel has cost them heavily on the back of the oil price drop.

    There was an article in the Phoenix magazine a couple of months back which discussed the SP in detail.

    Thats the second time they have done this. I think in 2008 when the world economy tanked. Ryanair had hedged most of their oil at like 3/4 times the market rate that most airlines were buying at. Ryanair needs a new oil strategist for hedging.


  • Closed Accounts Posts: 5,092 ✭✭✭ catbear


    newacc2015 wrote: »
    Thats the second time they have done this. I think in 2008 when the world economy tanked. Ryanair had hedged most of their oil at like 3/4 times the market rate that most airlines were buying at. Ryanair needs a new oil strategist for hedging.
    Swings and roundabouts, they got a great deal on aircraft after 9/11.

    On the stock, if you can see the bandwagon you're too late.


  • Posts: 17,733 ✭✭✭✭ [Deleted User]


    The price has grown sharply from mid 2012, the div yield is now well under 3%, can't really see the appeal at the current price if you are looking for a quick flip.

    Longterm for a pension fund investment Ryanair is remotely appealing.


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  • Registered Users Posts: 1,788 ✭✭✭ Cute Hoor


    the stock is not remotely cheap for an airline , easyjet ( admitedly an inferior company with an inferior brand ) is 50% cheaper , the american airlines are also way cheaper despite doing just as well as ryanair right now in the case of alaska airlines and south west

    airlines traditionally dont have high PE,s , ryanair doubled from november 2014 to november 2015 , it could very easily go nowhere this year

    its a terrific company but its stock market performance could not be described as anywhere close to underperforming by any measure

    Is this correct, as far as I can see there is very little difference in their P/E's, Ryanair 11.61, Easyjet 10.52, Southwest 12.63, Alaska 12.14 ?


  • Registered Users Posts: 1,788 ✭✭✭ Cute Hoor


    Augeo wrote: »
    The price has grown sharply from mid 2012, the div yield is now well under 3%, can't really see the appeal at the current price if you are looking for a quick flip.

    Longterm for a pension fund investment Ryanair is remotely appealing.

    There is no dividend yield as I understand dividend yield, Ryanair don't pay a dividend, well not like other companies do, they pay one anytime they feel like it, will they pay a dividend in the future.


  • Registered Users Posts: 1,788 ✭✭✭ Cute Hoor


    Their hedging gamble on aviation fuel has cost them heavily on the back of the oil price drop.

    There was an article in the Phoenix magazine a couple of months back which discussed the SP in detail.

    Ryanair have hedged at $62 per barrel for this year, down from $92 for financial year ending March 2016, a big improvement but still presumably paying too much, overall hedging is probably a good idea as it gives certainty around their costs


  • Registered Users Posts: 18 Waltan


    Key Ratios
    ________ Company Sector Market
    PER (E) r 11.59 16.58 18.18
    Net Gearing -8.86
    EPS growth 69%
    Margin 18%

    Im pretty new at this but these figure and a billion euro profit should mean growth. Please tell me what im missing.


  • Registered Users Posts: 9,472 ✭✭✭ AdMMM


    Big bump today of 2.44% but this just seems to be a knock on effect of Chinese trade figures rather than anything the company has actually done.


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  • Registered Users Posts: 18 Waltan


    Breakout at last. 18.20 today. Glad i held onto them. Where's the get out point?


  • Registered Users Posts: 2,112 ✭✭✭ cute geoge


    Ryanair is going through a bit of turbulence at the moment,please fasten year seat belts and prepare for a bumpy ride!!!!


  • Registered Users Posts: 162 ✭✭ Cannon_fodder


    Worth picking up when the carnage hits the share price, any further rumblings after that I would be ditching them. This one they did not read well at all, if no one walks the plank for it I would stay well away


  • Registered Users Posts: 52 ✭✭✭ TheAbstracter


    Why is there such a disparity between the share price on the NASDAQ vs the ISE + LSE?

    NASDAQ $106
    ISE €16.50
    LSE £16.35


  • Registered Users Posts: 522 ✭✭✭ dealhunter1985


    Why is there such a disparity between the share price on the NASDAQ vs the ISE + LSE?

    NASDAQ $106
    ISE €16.50
    LSE £16.35

    1 ADR (which trades on the Nasdaq ) is equal to 5 ordinary shares. Factor in FX and that should add up..


  • Registered Users Posts: 52 ✭✭✭ TheAbstracter


    1 ADR (which trades on the Nasdaq ) is equal to 5 ordinary shares. Factor in FX and that should add up..

    Interesting, thanks.


  • Registered Users Posts: 18 Waltan


    OLairy will throw the pilots a bone and he will be the hero again. It's over a decade since they got a pay rise so he has done well to avoid it this long. As was said above, good buying opportunities.


  • Registered Users Posts: 5,376 ✭✭✭ Wheety


    Ryanair bought a few hundred thousand shares back after the price dropped :-D


  • Registered Users Posts: 1,788 ✭✭✭ Cute Hoor


    Wheety wrote: »
    Ryanair bought a few hundred thousand shares back after the price dropped :-D

    They have been buying back shares all summer, paying well in excess of the current SP for most of them, they got this week's tranche far cheaper than their earlier buys.


  • Registered Users Posts: 46 ✭✭✭ YossiA


    Crude Oil prices drifting up again so share price may dip further in near future.


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  • Closed Accounts Posts: 697 ✭✭✭ wordofwarning


    Merrion a few months ago before all of this believed that their shares were due for a correction. Ryanair just can't scale like it used to be.


  • Registered Users Posts: 18 Waltan


    Monarch airlines gone bust so a big upside for Ryanair . Unemployed pilots a plenty. Shares up 3% today with more to come id say.


  • Closed Accounts Posts: 5,019 Olivia CoolS Femur


    Ryanair up 6% since friday. FR seem to be riding the "turbulence" well. UK revenue investigating pilots employment now, pressure EU etc.


  • Registered Users Posts: 1,650 ✭✭✭ littlevillage


    Ryanair trading around €15.50 on ISEQ today....after a couple of days of losses, anybody else tempted ?


  • Closed Accounts Posts: 5,019 Olivia CoolS Femur


    yup :) results out on Tuesday? Will be interesting.


  • Moderators, Society & Culture Moderators Posts: 6,769 Mod ✭✭✭✭ nuac


    Pilots may at last succeed in getting proper T and Cs


  • Closed Accounts Posts: 995 737max


    I bought some more shares in Ryanair just now in advance of the results tomorrow.
    I was on a Ryanair return flight last week and it was full. I see no indication that people wish to stop flying with the company. It is a good solid company in my opinion.


  • Closed Accounts Posts: 5,019 Olivia CoolS Femur


    I've been topping up and bought a good chunk when it dipped below 15.50 Results will be interesting tomorrow.


  • Registered Users Posts: 838 ✭✭✭ lucky john


    737max wrote: »
    I bought some more shares in Ryanair just now in advance of the results tomorrow.
    I was on a Ryanair return flight last week and it was full. I see no indication that people wish to stop flying with the company. It is a good solid company in my opinion.

    Filling flights and growing their market is'nt the issue for Ryanir. For the future the problem for the low cost airline in higher costs (labor.. oil) and horror of horrors for Michael..Unionization.


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  • Closed Accounts Posts: 995 737max


    Their EPS is excellent. I see them as an excellent store of wealth. maybe they only grow slowly from now on but I'm happy to have them in my small portfolio.
    They are as near to blue-chip as you will find in the aviation industry.


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