Tuesday tips round up: RyanAir, Reckitt Benckiser

28th Jul 2015 12:25

(ShareCast News) - RyanAir's shares fell 2.25% after it posted its first quarter results, partly because management voiced concerns over fuel prices, the Financial Times' Lex writes.The airline hedges most of its fuel purchases so its profits aren't sensitive to price movements, and next year's fuel prices were already fixed at cheaper than the current years already, the FT said.Lex said it seemed RyanAir's concern was more about avoiding financial losses than pocketing any gains, which follows behavioural economic theory from psychologists such as Daniel Kahneman.The budget airline's capacity was rising steadily at 6% per annum, while its costs remained low, the column said, and this is more than reflected in the share price, Lex said.The Times' Tempus said now is the right time for Reckitt Benckiser investors to take profits as shares were highly rated.RB was selling on 25 times earnings, Tempus said, and had made good progress since the start of the year.The global consumer group moved revenues ahead in all three core divisions and margin improvement was being invested back into brands, the column said.RB's growth stock is intact and in lean shape, Tempus said, but investors should sell up.