| Date | Subject |
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31/7/2021
16:45 | careful: Looking forward to H1 results Thursday 5th.
We expect a loss and a modest cash burn but hopefully improving.
Lots of ammunition left to survive.
Warren East has turned RR into a lean and mean operation.
Exciting times with hydrogen, nuclear, electric.
RR. is an important company and could become a national champion in so many areas.
Intrigued that the CEO Warren East opted to take a portion of his salary as shares last week.
Is he trying to tell us something?
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30/7/2021
16:23 | careful: medieval
Yes I have tobacco, IMB, also.
There are some opportunities out there for good long term total returns.
Interesting though with tobacco shares, you must time the point of entry.
Shares in tobacco companies have collapsed over the last few years, although earnings and dividends have been solid.
If you had bought at the top just a few short years ago you would be feeling very sick.
The debt on the balance sheet is also eye watering.
In all of its life IMB has accumulated negligible wealth on it balance sheet.
And our favourite RR. has a negative net worth.
Over 100 years of existence, our great company RR. has accumulated a negative net asset value.
A staggering fact.
I am beginning to think that for investors many companies are glorified Ponzi schemes.
But for every other stakeholder, employees, national interest, suppliers they are very important wealth creators.
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29/7/2021
11:32 | spacegazer: There's a lot of aircraft lying about that if America opens up on 11th Aug are gonna need engines looked at.....must be positive news for RR......onwards an upwards troops
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27/7/2021
10:56 | 1krl: FT reports today that UK govt will this week consider loosening travel restrictions for travellers from the EU and the US. Long distance US flights will be a boost for RR.
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14/7/2021
14:16 | careful: That is important news from Delta.
RR. said that air travel needs to get to 75% of pre pandemic levels to be cash flow positive.
If we get through this and RR. could become a national champion in several new areas.
Happy to hold long term.
I expect to double within 5 years, but I am prepared to go down with the ship if required.
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14/7/2021
08:23 | careful: RR. will emerge with a terrible balance sheet with net debt of £30bn plus.
Against that they have good technology and exciting prospects in many high tech areas.
Warren East built up a £9bn cash warchest to survive these tough times and has cut to lots of fat and waste.
RR.have become a lean and mean operation, but these are very difficult times.
They must not run out of cash. They may just fail to be cash flow positive this year.
But hopefully not by much.
Not for widows and orphans, but I am tempted.
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13/5/2021
13:18 | careful: Siemens have already bought much of RR. industrial gas turbine division.
Another German company, BMW make RR cars and own the car RR brand.
There has for years been a cosy relationship between BMW and RR, dating back to when BMW made the early jet engines at the end of WW2.
But any German company owning the whole of RR could be too much for some to swallow.
Seimens ownership could also upset the Americans.
Remember who is boss.
No, post Brexit I think Boris would remove the golden share and allow United Technologies, who own Pratt and Whitney to own RR.
A perfect fit, Pratt are weak in the wide bodied aircraft market.
Although even that is unlikely, let us hope RR. stays British, a national champion.
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13/5/2021
11:46 | careful: Boeing would not be allowed to buy RR.
The 'golden share' prohibits this.
There would be competition issues also.
RR. is a supplier to Airbus, the XWB in particular.
Boeing and the Americans resent Airbus and in particular the way they have profited from the recent demise of the 737 Max.
No love lost between these ruthless competitors.
RR. should stay independent of both aircraft manufacturers.
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08/3/2021
11:15 | stockready: Dovey
The road for IAG is so different to RR.
They have to pay loads of costs to get things up and running
Basically they have to pay RR. (and many others) to maintain and get those plans up and running...all good for RR and not IAG
I doubt IAG goes back to 600 mark anytimes soon. They only have opportunity to make it in ONE sector while RR. can diversify and gain business in multiple sectors and many emerging markets.
The winer is RR. by far i say
I will not put my money in IAG i think it still will make it to 300 but will be hard push beyond that point..
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04/3/2021
23:40 | stockready: All in
Thanks for the useful links which are very enlightening
I said before when we were under £1 and i repeat again RR. have such a unique expertise which build up over decades of innovation and design
There are not many companies like RR. and what they can do and what they can innovate going to future.
Some people put their target at the best case scenario to pre-pandemic times £2.50/3 once things start moving lets say in 12 months time but i say you are really missing a big picture of what can happen here (some of those highlighted in the links above)
However i say you are looking at the 10 bagger company right now if you hold for 5 years + as potential is massive and way overlooked
Post pandemics growing technology and innovation and expertise will lead RR. to rapid growth and they are in excellent position to expand in emerging markets.
You might think that is unrealistic but i say you have underestimated what can actually happen here.
This is a no brainer for me as this company will never fail and only gets stronger and stronger once pass this bump and sure it will. Even medium to short terms (12 months+) you will double/triple your money here the fundamentals is so solid,
RR goes forward and will come out of this far faster and stronger than analysts thinking right now
I truly don't care about the shorter terms move here this will be put a side and will be visited in 2/3 and... 5 years when 10 bagger comes.
The potential for expansion in different areas is massive for RR. from battery to hydrogen to nuclear and to NEW markets even those that they never been involved before as they have a foundation for it and soon you will see how fast this company grow post pandemic.
People who have done saving travel more and that is only one sector where RR. will grow. Engines need maintaining and new orders comes in from different sectors
Got to be in it to win it, don't miss the boat and once on board.... ride it high
Keep this post and revisit in 5 years time (or even 3 years time).
GLA
DYOR
IMHO
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PLUS1
