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Authoritative Independent Monthly Share Selections Using Technical & Fundamental Analysis

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Wizz Air - Fast growing low cost airline about to float

July 2014

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.

Warren Buffett once claimed (after a rare bum deal) that he would contact his shrink before ever contemplating another investment in an airline but low cost operators are the exception to this rule with shares in Easyjet racing ahead from £4 to £16 since 2010 on the back of a remarkable six-fold jump in eps from 16.9p to 101p over the past four years. Interestingly, there could now be another opportunity to participate in this fast growing segment with Wizz Air, the largest low cost carrier in Eastern Europe, which has just announced its intention to raise Eu200m gross proceeds and list on the main market. The company, which is controlled by private equity group, Indigo Partners, has a fine record with turnover jumping 19% to Eu1,012m ...

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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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