Shares in low-cost carrier Ryanair have flown back to the level they were at before the volcanic ash cloud disrupted flights and caused the sector to plunge in May. The company's long-term prospects justify this re-rating.Trading on a March 2011 earnings multiple of 15.9 times falling to 11.7 next year, the shares do not look especially expensive and remain a preferred airline play. The shares are a buy at this level for the €1bn a year free cash flow says the Telegraph.
Meat product group Cranswick has had another excellent start to the year. The company's like-for-like sales rose 6% over the first quarter – despite an 11% gain in sales in the equivalent quarter last year. The growth reflected strong volume growth of fresh pork, bacon and sandwiches, which offset lower continental product sales. Growth is likely to continue for the next few years as the group expands across products and geographies. However, with a significant amount of good news being in the price, now does not look like a good time to put new money into the shares. Hold says the Telegraph.
Bango offers mobile phone users an easy way to pay for games, music and other content quickly and securely. IT companies have carried a large health warning since the dot.com crash, but Bango has cash in the bank and seems to be in the right place at the right time. At 97p, the adventurous should have a punt says the Mail on Sunday.
Leave Ocado well alone adds the Mail on Sunday. The online grocer is potentially a great investment but not at these prices.
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