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Shares of Ryanair (RYAAY) +4% premarket after it terminated negotiations with Boeing (BA) for an...

Shares of Ryanair (RYAAY) +4% premarket after it terminated negotiations with Boeing (BA) for an order of up to 200 B737-800 series aircraft for delivery between 2013 and 2016, opting instead to "significantly reduce growth and capital expenditures, in order to maximize cash balances for distribution to shareholders." Ryanair was pushing Boeing for steep discounts.
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  • tripleblack
    , contributor
    Comments (13589) | Send Message
     
    I'd be careful with this one. I don't see where their business NEEDED 200 additional 737's to start with, and its obvious that Boeing was not in a position to sell even that large order at a net loss (presumably a BIG net loss, given the number of planes involved)...

     

    I don't like the looks of this one. I think we will see a brief pop in the share price, but its based on nothing changing in the company's fundamental business. By NOT buying planes they really didn't need, this is potentially all just a manufactured event (and just look at the timing). Those with a long investment horizon should be leery of this, and those working up close and personal should be hedging any bets, and thinking "short term".

     

    It will be interesting to see if this peak sustains into 2010.
    18 Dec 2009, 08:23 AM Reply Like
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