RE: Overpriced4 Dec 2020 15:35
Afternoon Joe
A tricky question but for what its worth my view is this.
The whole sector on the initial face of it is overvalued in essence with reduced revenues currently when basing opinions on fundamentals alone, however some businesses are better placed to weather the current downturn and no question Rya is in the dominant financial position compared to its rivals. Some of those rivals are going to be held back for years by the necassary actions taken to survive, some of them are at considerably lower sp's when compared to rya and indeed previous highs, with more headroom to make up when things are back to a more normal.
I also think that people have misjudged the pent up demand for holiday post covid, so expect that the fundamentals will catch up quite promptly once the planes start flying enmasse again, the vaccine news certainly helps here and has provided the current lift in price.
So as i say a tricky question, but simple answer would be yes on the face of it, but once delving deeper into the relevent differences between the companies in the sector id temper my view more to sitting on the fence with a neutral stance.
But what also needs factoring in is that as a longer term investor, rather than a 'quick buck' trader im in no rush, patience is key as is confidence in the buisiness model and BOD's, and its a fact that mine has been very well rewarded with RYA's huge sp and continuing increase.
I see you are in EZJ, do you think they are over valued?