Originally Posted by
Beagle
Seems cheap enough at about 8.5 times this years earnings but the market is a forward looking beast and once their forward cover on oil runs out mid year what are they going to be paying for fuel in FY19 and will they be able to recover any of that (extra $200m ?) with yield improvements ? Long term their average PE is about 11 so maybe the current price is about right considering worries about fuel price next financial year ? That said they're not anywhere near out of the woods with their engineering issues with those dodgy engines yet... I'm still expecting a very cautious tone to their half year results presentation next month. Far more likely to see $2.50 in the near term than $3.50 in my opinion. Disc: Interested at $2.50 not at $3.00.