At 520p, is the easyJet share price too cheap?

first_img Rupert Hargreaves | Sunday, 11th October, 2020 | More on: EZJ At around 520p, the easyJet (LSE: EZJ) share price looks cheap compared to its trading history. Indeed, at the beginning of the year, shares in the low-cost airline were changing hands for around 1,500p. However, the airline group isn’t the same company it was at the beginning of 2020. As such, I believe it’s reasonable to say the business is worth significantly less today than it was at the beginning of the year. 5G is here – and shares of this ‘sleeping giant’ could be a great way for you to potentially profit!According to one leading industry firm, the 5G boom could create a global industry worth US$12.3 TRILLION out of thin air…And if you click here we’ll show you something that could be key to unlocking 5G’s full potential…easyJet share price declines In fact, easyJet has had a horrible year. Lockdowns enforced to try and contain the spread of Covid-19 around the world effectively killed off international travel. Even though some limited activity has resumed in the past few months, many consumers are still too afraid to fly.The company’s latest trading update shows the scale of the devastation. The group expects to report a pre-tax loss of between £815m and £845m in the year to 30 September. It will fly only 25% of last year’s capacity in the final three months of the year, that’s down from 40% over the summer. As passenger numbers have collapsed, the company has rushed to find additional funds. It raised more than £2.4bn in cash since the beginning of the pandemic. Shareholders contributed just over £400m of this total. Before the pandemic, easyJet had one of the most robust balance sheets in the airline sector. Unfortunately, its financial position has since deteriorated. It had £1.1bn in net debt as of the end of September. By comparison, two years ago, the group had nearly £400m of net cash on its balance sheet. What does this mean for the easyJet share price? It’s not good news. The company has had to slash jobs to reduce costs over the past few months. These cost-cutting efforts, coupled with the group’s reduced flying schedule, suggests its profit potential has been severely curtailed.Analysts don’t expect demand for air travel to return to 2019 levels until these 2025. That indicates the business is in for a rough few years. What the future holds The big question is, will easyJet ever return to 2019 levels of profitability?I think this is unlikely in the near term. Even if demand for the company’s services does return to last year’s level, the group’s elevated borrowings may prove to be a drag on profitability. A weak balance sheet will also hurt the low-cost airline’s ability to grow in the future. That said, at current levels, even a modest improvement in profitability could be helpful for the easyJet share price. As such, I think the stock does look too cheap, and long-term investors may be able to achieve high total returns buying the shares at current levels.However, it could be many years before the stock returns to 1,500p. A repeat of this spring’s total lockdowns could mean the company’s recovery is only pushed back. In the meantime, investors might be better off looking elsewhere for growth. Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge! “This Stock Could Be Like Buying Amazon in 1997” I would like to receive emails from you about product information and offers from The Fool and its business partners. Each of these emails will provide a link to unsubscribe from future emails. More information about how The Fool collects, stores, and handles personal data is available in its Privacy Statement. Image source: Getty Images. Renowned stock-picker Mark Rogers and his analyst team at The Motley Fool UK have named 6 shares that they believe UK investors should consider buying NOW.So if you’re looking for more stock ideas to try and best position your portfolio today, then it might be a good day for you. Because we’re offering a full 33% off your first year of membership to our flagship share-tipping service, backed by our ‘no quibbles’ 30-day subscription fee refund guarantee. Rupert Hargreaves has no position in any of the shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.center_img Our 6 ‘Best Buys Now’ Shares At 520p, is the easyJet share price too cheap? See all posts by Rupert Hargreaves Simply click below to discover how you can take advantage of this. Enter Your Email Address I’m sure you’ll agree that’s quite the statement from Motley Fool Co-Founder Tom Gardner.But since our US analyst team first recommended shares in this unique tech stock back in 2016, the value has soared.What’s more, we firmly believe there’s still plenty of upside in its future. In fact, even throughout the current coronavirus crisis, its performance has been beating Wall St expectations.And right now, we’re giving you a chance to discover exactly what has got our analysts all fired up about this niche industry phenomenon, in our FREE special report, A Top US Share From The Motley Fool.last_img read more

6th Street Pizza & Grill Serves Up Great Food, Views and Fun

first_imgMelissa Brown, manager at Gillian’s Wonderland Pier, and employee Paul Westcott display a mouthwatering cheese pizza and margherita pie, along with chicken wings. By MADDY VITALE What would the Boardwalk be without amusements, beach views, and, of course, pizza?And there was one very strong indicator that pizza is a favorite when strolling by Gillian’s 6th Street Pizza & Grill, located on the Ocean City Boardwalk. Customers lined up on a recent weekday for a slice of the thin, but not too thin crust pizza, with a mild sauce topped with lots of tasty cheese.“Boardwalk slices are just a part of the Ocean City experience,” explained Melissa Brown, manager at Gillian’s Wonderland Pier, as she spoke with customers and staff at the eatery.Ocean City Mayor Jay Gillian, who, along with his family, owns Gillian’s Wonderland Pier, opened the restaurant in the summer of 2016.To view the menu for Gillian’s 6th Street Pizza & Grill click:  https://ocnjdaily.com/wp-content/uploads/2021/03/6thStreetTrifoldMenu2021.pdfGillian’s 6th Street Pizza & Grill opened on the Boardwalk in 2016.Over the summer months, the restaurant makes for a perfect part of a day — enjoying rides at the amusement park and sitting at either the pizza counter with open air views of the ocean or in a spacious booth.“We are a family-friendly restaurant located at Gillian’s Wonderland Pier, a traditional, shore town eatery” Brown said. “What could be better than a ride on the Carousel, or a spin on the Giant Wheel, followed by a hot Boardwalk slice with your family?”Brown emphasized that amid the COVID-19 pandemic, Gillian’s strictly adheres to health and safety guidelines.The popularity of the restaurant is due to several reasons. An ideal location with fantastic views of the ocean does not hurt.But it is also because of the people who work at Gillian’s, most longtime Ocean City locals, and others who come with a special gift in the kitchen.One of the chefs came from a well-known restaurant in Somers Point and has a special recipe for the pies, among other entrees customers savor.“6th Street Pizza takes pride in our ingredients and our attention to detail. Our chefs are proud of the dishes they serve. That is what makes all of the difference,” Brown said. “Besides our delicious pizza, our cheeseburger is to die for. We also always get rave reviews over our wings and tenders.”Customers socially distance as they line up during a pre-season weekday.Wing Wednesday is popular among customers — especially locals who make it a weekly staple.“Our crew is made up of experienced cooks, as well as young students working their very first job,” said Brown, who started her career at Gillian’s 20 years ago, returned from college and went back to the job she loved. “We are serving up dishes year-round by our team of all locals.”High school athletes stop in before practice, while other Ocean City High School students come in for a bite after school, Brown added.What helps to entice customers to keep coming back — besides eating in an amusement park — is the price.“We have killer specials. The OCHS students get great discounts,” Brown added. “Our daily lunch specials also keep guests coming back for more.”In addition, 6th Street Pizza not only gives free garlic knots with every delivery, but also keeps the other merchants in the community in mind.“We also have 6th Street Pizza’s Business of the Week, where we send pizzas to local businesses around town,” Brown said.The restaurant, the amusements, the ocean and Boardwalk are all good reasons to stop in at 6th Street Pizza.For customers, it may be the first time to try out a dish there, or one of many in a family tradition.For more information visit www.gillians.com or find them on Facebook at www.facebook.com/gilliansOCNJ.Gillian’s employee Paul Westcott prepares garlic knots that are free with every delivery.last_img read more

The Bundesliga is back, so can Dortmund catch Bayern?

first_imgShare on: WhatsApp Can Bayern Munich see off the chasing pack to claim an eighth straight title as the Bundesliga returns behind closed doors?Berlin, Germany | AFP |  Bayern Munich are in pole position to win an eighth straight title, but Borussia Dortmund lead the chasing pack and are spearheaded by Erling Braut Haaland as the Bundesliga comes out of its coronavirus-enforced hibernation this weekend.AFP Sport takes a look at what is at stake on the field when the German top flight ends a two-month shutdown to play out its final nine matchdays.– Some things stay the same… –Teams have undergone testing and been forced into quarantine training camps because of the virus, and all matches will be played behind closed doors in the league with the highest attendances in world football.So this will not be the Bundesliga as we know it, but something else may be just as before — Bayern, the country’s most successful club, are on track to win another title, which would be their eighth in a row.They had put a patchy start to the season under Niko Kovac behind them before the shutdown, with Hansi Flick coming in as coach and Bayern winning 10 and drawing one of their last 11 league games.The Bavarians are four points clear of Dortmund at the top and have been busy since their last game, with Flick signing a new contract until 2023.Key players Thomas Mueller and Alphonso Davies followed suit by penning extensions of their own, while former striker Miroslav Klose has joined as assistant coach.With Robert Lewandowski scoring 25 goals in 23 games, Bayern are formidable. They still have to visit Dortmund and Bayer Leverkusen, although it remains to be seen how much home advantage will matter without fans.– Watch out for Haaland –It could still just about be a four-horse title race, with Borussia Moenchengladbach six points off the pace in fourth, but Dortmund are best-placed to stop Bayern.Lucien Favre’s side were last seen going out of the Champions League to Paris Saint-Germain, but before that were in thrilling form led by young stars Haaland and Jadon Sancho.They won seven out of eight league games after 19-year-old Norwegian powerhouse Haaland arrived from Red Bull Salzburg. He scored nine goals in that run.Dortmund, though, will not be able to rely on their fans who usually pack the 81,000-capacity Signal Iduna Park and their next two home games — against Ruhr rivals Schalke on Saturday and then Bayern — will lose much of their edge as a result.“Having to play behind closed doors is an enormous challenge, especially for a club like BVB, which draws a lot of strength from the passion of its supporters,” admitted Dortmund chief executive Hans-Joachim Watzke. Dortmund also must still visit Leipzig, who reached the Champions League quarter-finals before the suspension but whose patchy league form after the winter break saw them fall off the pace.In Timo Werner, they have their own fearsome striker. And in Julian Nagelsmann, 32, they have one of Europe’s most exciting young coaches, so anything is possible.Gladbach were the last team to beat Bayern in the league but would now settle for holding off fifth-placed Leverkusen to secure Champions League qualification.There are two points between those sides, who are due to meet next weekend.Beneath them, in the fight for one Europa League spot, Schalke, Wolfsburg, Freiburg and Hoffenheim are all within two points.– Bremen in danger –At the bottom Paderborn prop up the division but the plight of Werder Bremen is more striking.The four-time champions are four points adrift of Fortuna Dusseldorf in the relegation play-off place and eight points from outright safety.They have a game in hand, but are in danger of following the path of Hamburg and Stuttgart, two giants to have been relegated in recent seasons.“We all know how precarious our league position is. That’s motivation enough,” said sporting director Frank Baumann when asked about playing home games without fans.Elsewhere, Hertha Berlin seem far enough clear of relegation trouble but it has been a chaotic campaign in the capital.Bruno Labbadia has become the club’s fourth coach this season since the shutdown began, with Jurgen Klinsmann’s short-lived time in charge ending.last_img read more