Rolls-royce Share Discussion Threads

[svenice7] 20/5/2020 08:02

Government dont help any company apart from dirty banks.

[buywell3] 20/5/2020 07:59

The Government need to help this company IMO

[jonny_wright] 20/5/2020 07:42

Dog of a share! Proceed with caution

[jackdaw4243] 20/5/2020 06:37

Bolt on department and shift work will feel it most IMHO. Warren East on radio 4 at 7.30.

[pallys] 18/5/2020 15:57

I don't short - only invest.

But on that note for the first time since 3 years shorters have opened positions here in the last couple of weeks:

I just keep an on eye on it as I don't like to fight the vulture funds as they usually win in the end depressing share prices.

Good day for FTSE today - partying like its 2016 where the world wasn't shut down, overvalued market I think.

I'm still 70% cash, no position in here yet, just waiting for my entry point.

[eater24] 18/5/2020 14:20

The shorters nightmare must be any major vaccine breakthrough, and they are going to
feel some real serious pain, and it could come at anytime as there are lot of powerful people looking for just that 24hrs a day

[svenice7] 18/5/2020 11:37

Your shorts hurting today Pally. Perhaps you should close them before you get caught with them down.

[careful] 18/5/2020 10:34

Sometimes being ruthless and cutting out waste is the best for everyone.
Short term pain for long term gain.
Survival is everything.

It preserves jobs and creates wealth which can be re invested for future growth.
The great RR. Company then becomes strong again and creates opportunities for future generations.

Expansion and recruitment is the next step.

Warren East will grasp this opportunity.

[wilmo] 18/5/2020 09:57

Hopefully the current situation will force the company to manage a successful restructuring as this is something that should have progressed much further over the last few years. Do what it says on the tin and cut out unnecessary layers and deal with low performance and poor behaviours. The “capable prudent” managers need to be braver in dealing effectively with this - a less sentimental approach - Need to be more ruthless to survive.

[careful] 18/5/2020 08:28

I am holding here.

RR. as a hold is a punt on its survival.

At todays price, down 60% since Jan 1st his year, if RR. can hold on and survive it would be a great long term investment.

The 60% fall reflects the risk that RR. could lose its independence again with the possibility that shareholders would be wiped out as before.

But RR. has reserves, and defence income, and still some civil income.
Plus a capable prudent management.

This pandemic could blow over as quickly as it came, people soon forget.

[zee4you] 18/5/2020 08:26

First of all I don't think anyone here cares about someone else making or losing money , secondly if any of us knew where the share price is heading I don't think he or she would waste their time messaging here. Lastly there is always a Bull & Bear case when it comes to RR and end of the day you just need to chose which side you are on based on your own research and appreciate others if they are against you rather then trying to prove you are right. All the best to everyone whichever side you are on )

[pallys] 18/5/2020 08:18

RR make 6 billion in 3 months? dream on buddy - you need to be very precise with your figures.

The reason its 6 billion in debt is because it doesn't matter how much revenue it gets - it has more outgoings than incomings and its been like this for a while - even when the sun was shining! - what do you think will happen now?

Debt position to double in 18 months.
That's the kind of debt that RBS went bust at and government intervened.

DYOR of course - I just dont want people to lose money here.

[svenice7] 17/5/2020 07:55

"Its our job to catch falling knives. Because its when knives are falling, when people are most terrified and the prices are lowest." Howard Marks 2020

[svenice7] 17/5/2020 07:53

Rolls Royce bonds are 3%....

[sr2day] 17/5/2020 04:00

under 200p soon.avoid.

[simba_] 16/5/2020 23:47

Some people don't know that RR went bankrupt in 1971. .Will the company survive?. Yeah, probably. Bit will the equity holders get wiped?. That's a different question. And that's the one that's needs attention.

[pallys] 16/5/2020 19:15

RR has £6billion debt - the other companies mentioned do not.
RR doesn't even generate a profit to pay off its debt.
That was 2019 debt position, it will double in 2020 and 2021

[svenice7] 16/5/2020 17:07

Exactly - autotrader website is higher market cap than rolls royce. Wake up guys.

[big1day] 16/5/2020 11:05

Careful. Good post, agree value is not recognised here way too much Doom and Gloom and bad sentiment here and lack of vision for the future. Too much focus from the market given to flying hours which will return anyway. RR is diversified with Nuclear and Defence both doing well and the valuable technology they own and market share they dominate are very important. Trent 1000 burden coming to and end too.

[careful] 16/5/2020 10:31

The real value of RR. is in what it would be worth to a buyer.

United technologies in America would pay £15bn min, as would GE America.
The golden share would be removed on a telephone call between the American President and a UK Prime Minister.

It seems at least Trump is shaping up to isolate the USA from China and Asia and trying to end globalisation.

He will demand loyalty from the UK.

I read into all of this that RR. is a valuable trophy asset whose World class capability makes it worth far more that todays market value.

RR market cap £4.82bn
Ocado. £14bn.
Boo hoo. £4.2bn.

per lease.....lets wake up and smell the coffee.

[careful] 16/5/2020 10:21

Thinking of adding if this gets lower.

Seeing what Powell at the Fed has done for corporate bonds in America, there are some innovative tools to be copied here.

If RR. issue longer term corporate debt at a modest coupon, it could be bought by HMG as a sort of QE, as they do with HMG gilts.
The government just prints the money.

It would buy RR. time and keep them out of the clutches of the hedge funds and private equity sharks.

Any investment today would be a bet that the government will come up with a scheme that does not crush the existing shareholders as it did with the banks on 08.

[npp62] 16/5/2020 10:08

Fair comments. I sold 50% of my holding here already. Will possibly sell the rest on Monday. With the FTSE still near 5.6?... the April rally will continue to be clawed back in my view. Care to share your better value companies with us?

[thejonah] 16/5/2020 01:05

Agree with everything you say - except tech. Prefer gold miners at present!