The company has bought back shares at 5.50 Euros, or equivalent in ADR to $46.50 (assuming London shares continue to trade at 13% discount to United States ADRs), and has bought back shares all year at an average price of $42. So either management can't see the forest for the trees, or you can currently buy the stock for 20% discount to what the CEO pays.
Market is worried about high oil price at $100 per barrell, but company has already weathered rising oil prices since 2002, continues to grow earnings and revenues greater than 20% per annum, and maintains its > 20% operating margin. Furthermore, Ryanair's average ticket price is about 44 euros with oil at $65 per barrel. If $100 is the price paid next year for oil, Ryan will need to raise the average ticket price by 5 euros next year. That's chicken scratch. I don't think a 5 euro increase on ticket prices will cause a massive destruction of load factor for the airline.
I like this stock more as it goes down.
$39.9 (11/29/07)
Agree
Disagree
