Shareholder Value vs. Profits19 Jan 2019 11:50
Ole Mikey and his arrogant attitude has led RYA to top of the table in terms of shareholder value destruction. Just look at the comparative falls from SP highs for the main players. (apart from Flybe - which was never going to survive as a stand alone).
All well and good RYA reporting an increase in PAX numbers - but multiple profit warnings (some of them self inflicted) have driven the RYA shareholder value destruction. Investors want to see some semblance of where growth (profitability growth) is going to come from. The markets are usually pretty spot on. There is a very good reason why other airlines don't compete with £5 fares.
As an investor/trader - it's all about shareholder value and I reckon that EZJ will be a good bet over the next 6 months or so. In terms of EZJ SP growth - I reckon it will outshine RYA in 2019.
It's not about how much profit any airline makes, it's all about shareholder value. (RYA returns more profit than anyone (apart from IAG) - but what use is that if it leads the shareholder value destruction table.
My holding now in EZJ is relatively small at 4,000 shares (picked up 2,000 shares on the panic selling yesterday).
These are a buy & forget purchase - will take some profits if SP rises considerably during 2019, If not, will be happy to pick up the Div's for the next few years.
Will be nice to compare the shareholder value returns of both EZY & RYA over 2019 - and my money is on EZJ.