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Authoritative Independent Monthly Share Selections Using Technical & Fundamental Analysis

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Primary Recommendation

Easyjet - Low cost carrier sports terrific growth record

September 2015

Investing in shares may lose you all or some of your money. Past performance is no indication of future performance. Some of the shares recommended here may be small company shares, which can be relatively illiquid and hard to trade and this makes such shares more risky than other investments.

  • Epic Code:
  • EZJ
  • Price:
  • 1715p
It’s no coincidence that shares in UK quoted low cost airlines are at or near all-time highs given that low cost carrier capacity has tripled to just over 30m seats over the past decade, taking a significant bite out of the full service “flag” carriers. Riding the crest of this wave has been Easyjet. Like all the low cost carriers its model has been to “unbundle” the airline product and convert costs into revenue. Catering is fully paid on board and customers pay extra for designated seating and for baggage to go into the hold. Between 2004-2014 this strategy has helped increase pretax profit from £62.2m to £581m while eps has grown almost 11-fold from 10.4p to 113.1p. When you consider the curve ...

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With small companies there is an above average degree of risk compared to buying blue chips. Please be aware that we have not assessed the suitability of any of these investments for you. The newsletter simply states a personal view and diarises the editor’s investment decisions. Please speak to your stockbroker or other qualified individual to ascertain whether any of these companies mentioned would form useful additions to your own portfolios. Past performance is no indication of future success.

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