RE: Q126 Jul 2021 20:12
I find RYA a fascinating stock to watch. I am invested in BT, and until recently BT was underperforming against RYA big time. Feb 26, BT was underperforming RYA by around 43%; BT's closing price was 123.55p, which gave it a Market cap of around £12.25 Billion, whereas RYA's closing price on the same date was €16.54, giving a market cap of over £16 Billion. BT has now caught up and overtaken RYA with a current market cap over £18 Billion.
They are different companies in different sectors, but in terms of Revenue BT's is over £20 Billion, during Covid, with RYA currently taking losses and FY22 likely to be little over €2 Billion. In terms of financial investments, into infrastructure, BT has committed to spend around £15 Billion rolling out FTTP and 5G, which the press make much of, but I hear little of the cost to RYA of buying 200 737 MAX 8's. The list price of the 737 Max 8 is around $121.6 million, so 200 at list price would cost RYA around $24 Billion, but there's likely to be a substantial discount so I'd guess around $12 Billion. Maybe RYA would decide to sell much of their current "unencumbered" fleet to offset the cost of the new aircraft, but it would likely have to be sold at a substantial discount to the current asset value, maybe even bargain basement prices. BT are completely replacing their network, at significant cost, but the Fibre they install now will last much longer than the 737 Max's, have a fraction of the operating/Maintenance costs and doesn't cost much more than RYA's investment into new aircraft, with BT currently generating 10 times the revenue of RYA.
Todays 4% rise needs to be viewed in context. According to the LSE, today's traded volume for RYA is 761,154 with a value of €3,488,903.28. Today BT's traded value was £25,383,782.50, Lloyds £30,912,921.54, Vodafone £63,474,912.26 ( Vodafone are in the midst of share buyback programs, explaining the much higher figure). My point is that RYA may be over 4% higher today, but on the back of sclerotic volumes with a low value of trades, why is that? Are people holding onto the stock, or maybe some other reason, the weekly chart, below shows a tailing off trend, with various large spikes on certain weeks. I'm not here to offend anyone, just interested in other peoples views on such an interesting stock?
https://docs.google.com/spreadsheets/d/e/2PACX-1vTe2j-jeECMopmL5Sh3rnqPIIoJxRSbiSA2XZnc2zojIUNvItGclgwLYA8OH9aSEnh-qzG1lCJEEJc7/pubchart?oid=156812212&format=interactive
Sign In
Follow the stocks
