Rolls-royce Share Discussion Threads

[careful] 17/4/2020 16:24

Will RR.need a rights issue at sometime?

Last update suggested that they had cash to survive for a while.
But that was by using up all their spare cash plus extending debt.

The piggy bank would look healthier with a little more cash and less debt.
After this panic is over.

[jackdaw4243] 17/4/2020 14:43

darrin

Reduced commercial impacts on freight so the freight only market should pick up.

[darrin1471] 17/4/2020 12:38

If the market as a whole falls RR will fall with it and probably at a greater rate.
FTSE and Dow are only 20% off their highs. “we don’t come out of this where we went in”. Earnings are structurally damaged for years to come. Equities are not worth the same.

51% of RR. revenue comes from civil aerospace.
Maintenance revenues is dependant upon the number of hours flown by the aircraft.

Commercial flight are now down over 70% and still falling slightly
hxxps://www.flightradar24.com/data/statistics

An equal 70% drop in maintenance revenues will equal significant loses for RR.
Flights will recover significantly this year but it will take several years to recover fully.

[careful] 17/4/2020 12:31

RR. geared fan engine was to be ready for about 2025.
Seemed years away, but time passes.

It was aimed at the Airbus A320, boing 737 type market, up to now a huge market.
Hopefully it is progressing, RR. missed out on this market after the V2500.

Will these smaller cramped aircraft still be in fashion post corona virus,
or maybe passengers will demand to be seated further apart?

Maybe flying will become more expensive.

[careful] 17/4/2020 12:14

Boeing restarting production is a good sign.
Boing shares up strongly in premarket.

[sh1984] 17/4/2020 11:41

Contractors will always be laid off, that's why they are a temporary workforce. How many companies are keeping contractors during these times?
Doesn't matter what you write, the markets think otherwise today with an increase in share price.
Open a short position if you think otherwise, lets see where this share price is in a years time.

[jackdaw4243] 17/4/2020 11:32

SH

I am well aware of which plane have RR engines and apologies if you thought I was connecting the 737Max with RR engines.

Big1Day

From the depths of "new build", 50% is optimistic. How many contractors were laid of last week ??

[sh1984] 17/4/2020 10:56

737 Max has no effect on RR, they don't provide engines for that aircraft.... That's another supplier... would be good to do some research before posting that on RR share forum.

[jackdaw4243] 17/4/2020 10:38

Despite all the government bailouts, it’s looking pretty dire for airlines, aircraft manufacturers, and aerospace. Boeing has seen over 300 orders for its cursed 737 MAX plane cancelled – though it still has a 5000 plane backlog. Thousands of small suppliers rely on orders from the engine makers and plane makers.

Its why companies like Boeing, GE ,Airbus and Rolls Royce are strategic assets. Whatever you do, don’t Google how RR’s engine business is doing – it will ruin your day.

[sh1984] 16/4/2020 22:32

Qantas and other Australian airlines flying again from today.

hxxps://www.news.com.au/travel/travel-updates/virgin-announces-plans-to-resume-domestic-flights-from-tomorrow/news-story/90e79c1e4052f96a8ee241d9d1350f43

[sh1984] 16/4/2020 22:29

Etihad airways start flying again in 2 weeks time.
hxxps://www.thenational.ae/business/aviation/etihad-to-resume-partial-passenger-flights-on-may-1-pending-the-lifting-of-restrictions-1.1006744

There is even talk of easyJet flying with middle seats removed, load factors don’t affect engine revenue so RR would not lose in that scenario.

Way oversold.

[big1day] 16/4/2020 15:06

Even if flight hours remain at 50% average level for a prolonged period that would impact RRs revenue by 25% due to diverse business and cargo planes will still operate similar levels bit less maybe. The flying hours will slowly increase over next 2 years I think so to discount the share price by 50% from pre virus levels which is where we are now seems a bit oversold to me. Talk of £1 a share to me is ridiculous may see sub £3 soon below £2.50 I think is very optimistic but this is just my opinion. The old planes (dead wood) will get retired early this will clear the way for new orders some way down the line.

[ljhrunner12] 16/4/2020 14:44

Tonyslyfox do you really believe that the RR MCAP will go below a billion pounds in the coming months?

[darrin1471] 16/4/2020 11:11

Fool "It seems a long time since 28 February, when Rolls-Royce Holding (LSE: RR) boss Warren East reported a 25% rise in profits for 2019. Since that day, the FTSE 100 has fallen by 12% and the Rolls Royce share price has fallen by more than 45%."

FTSE down by 12%
Worse than 2008
The market has yet to grasp that “we don’t come out of this where we went in”. Earnings are structurally damaged for years to come. Equities are not worth the same. Some 17m Americans have lost their jobs in three weeks and the Great Purge has yet to run its course. Global unemployment rates will explode to politically dangerous levels if the pandemic is not properly contained.

RR. is a great company but I don't believe the markets have priced in the next year and therefore I will be waiting for a better entry point

[big1day] 15/4/2020 21:48

We would all love a perfect entry but surely you got to be realistic or you'll just miss the boat entirely. Good luck with your decision

[tonyslyfox] 15/4/2020 20:41

BIG1DAY
Total agree with the fools investment that RR would will be a good long term investments there price to day £3.10
but in 2 weeks time when the price will most likely drop to £2.50 sounds better
And in few months time could be less than £1.00 sounds even better
But 50 pence sounds better but might be whish full thinking

[teamwork1] 15/4/2020 11:22

This might drop when dow opens

[careful] 15/4/2020 09:26

Humpty Dumpty sat on a wall,
Humpty Dumpty had a great fall.
All the Kings horses and all the Kings men,
Just couldn't put Humpty together again.

Sometimes a sudden shock causes permanent damage.
Everyone is too optimistic about things quickly getting back to normal.
I doubt it.
This virus panic has yet again exposed the fragility of the World economic system.

Way back in the late 1960's RR was a blue chip company respected throughout the World.
Despite 90% of its businesses being sound, diversified and international, the expense of sorting out one major new project, the RB211, destroyed it.
Simply ran out of cash, became bankrupt.
Beware, these are dangerous times.

[sh1984] 14/4/2020 19:15

Unsure on test stats for those areas.

United Airlines to resume Flights in 3 week’s time

hxxps://simpleflying.com/united-additional-resumptions/