Rolls-royce Share Discussion Threads

[standish11] 23/7/2024 15:30

Roger. Can I put it this way.It is clear from the Thai link which you kindly posted that the durability of the Trent 1000 was an important issue in the engine choice decision making process. If Tufan had been prepared to do a deal whereby RR would sell the engines at a big loss as had been the case in the past then no doubt agreement could have been done on price. Tufan has made it clear that those days are over.
IAG and ANZ have made it clear in published statements that durability issues were a factor in their decision to switch to GE for future 787 deliveries.

[vikingwarrier] 23/7/2024 15:07

It used to be that pratt was a competitor along with GE. GE of course is a huge coglomerate with a strong financial department. That probably helps GE .Perhaps RR should set uo a funance arm in conjunction with RR cars? Really though the competition is GE and there is a huge barrier to entry.So RR should be able to name its price within reason.

[careful] 23/7/2024 13:04

It would be good after years of low margins to have pricing power.
But in the past competition was too fierce.
If RR.were too greedy they lost out

Elsewhere we have Nvidia making hay with a 90% makeup and almost no competition.
That will change, market share will fall and margins will fall as competitors get their act together.
Even Tesco Aldi Sainbury and the rest have stopped beating each other up as they were a few years ago.
Tesla are suffering from fierce competition now and huge tariffs on Chinese BYD cars are being applied across the World.

Turfan may be right to hold his margins but it can be a risky strategy. he needs a (sort of) unofficial cooperation of his competitors for when the market cools off a little.

[rogerrail] 23/7/2024 12:44

Sorry disagree, Thai Airways selection of GE was a pricing issue:hTTps://simpleflying.com/thai-airways-unhappy-rolls-royce-engine-prices/

[vikingwarrier] 23/7/2024 09:53

The T1000 Has been an utter disaster for RR. No sooner had the 787 started flying for ANA we were seeing engines returned to RR for repair. The view was yes there's a problem but it will soon be fixed and engine programmes last for 50 years or so its just a hiccup. However its now ten years on with billions down the drain. No doubt soon all will be well. GE must have knocked down the price soo the question is will GE make money from this?

[standish11] 23/7/2024 09:43

I very much doubt that iAG switching from RR to GE for 787 engines was a price issue. As Tufan acknowledged some months ago the Trent 1000 problems are taking much longer to fix than anticipated and it seems BA were not prepared to wait much longer. It pains me to say it but the GE engine can spend much more time on wing and requires less inspection and maintenance.

[mcunliffe1] 23/7/2024 08:57

Turfan wanted to renegotiate contracts to increase the revenue and margins - I believe. Perhaps he's pushed IAG a little too hard?

This past few days I have been toying with buying more RR. My last purchases were at £4.63 on 11th June and £4.53 on 25 June. My average overall is £3.847 on the £28k holding.

However, the almost constant drop over the past month has concerned me.

[hubs] 23/7/2024 08:45

Does look as if the drop below 440p now has about 445/6 as resistance, not support. Seems to have been playing around with this for a while, so hopefully soon to be broken again.

[rogerrail] 23/7/2024 08:31

Sometimes I wonder if Turfan is just flying on the coat tails of Warren East because such a quick turaround can only be attributed in the main to the groundwotk of his predecessor, I am really not sure he understands the Airline industry.

[rogerrail] 23/7/2024 08:24

RR attitude to the B787 is really frustrating, you would have thought they would have bust a gut to hold onto their most loyal customer, hugely disappointing.

[vikingwarrier] 23/7/2024 08:21

Ah the unknown unkowns which affect every share in the market.

[foreverbull] 23/7/2024 07:56

Https://www.fool.co.uk/2024/07/22/what-would-i-do-if-rolls-royce-shares-plunged-50-history-suggests-a-big-decline-is-coming/ What would I do if Rolls-Royce shares plunged 50%? History suggests a big decline is comingWhile Rolls-Royce shares have delivered massive outperformance in recent years, they also have a history of significant declines.Ben McPoland22 July, 1:14 pm BSTRolls-Royce (LSE: RR) shares have generated truly incredible returns since bottoming out at 38p during the pandemic. They're now up more than 1,000% inside four years!This shows how investing in quality companies when they've been written off by the market can work wonders for wealth. Once I've identified the opportunity and bought the shares, I can sit back and wait for the recovery to take place.However, it isn't always that easy. I can be right long term but wrong in the short term, and vice versa. For example, if I'd bought Rolls-Royce shares at 144p in October 2021, I would have been down by 50% by October the following year.Should you invest £1,000 in Rolls-Royce right now?When investing expert Mark Rogers has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for nearly a decade has provided thousands of paying members with top stock recommendations from the UK and US markets. And right now, Mark thinks there are 6 standout stocks that investors should consider buying. Want to see if Rolls-Royce made the list?See the 6 stocksAnd if I'd given up and sold my shares out of frustration right then? I'd have missed out on the epic 500%+ rally that followed!Rolls-Royce Plc Price22 Jul 2019?22 Jul 2024Zoom ?202020222024202120232020?20202022?20222024?20240250500750www.fool.co.ukA history of 50%+ drawdownsAccording to investing platform interactive investor, Rolls-Royce was the third most bought stock by its customers in June (behind Nvidia and Legal & General).Clearly, many of these investors are expecting good things from the stock, and I can't blame them. I am too as a shareholder. The FTSE 100 engine maker is seeing strong demand in its Defence division due to a tragically warring world, while growth in its Civil Aerospace business is being driven by recovering global travel.Profits are growing, margins are expanding, and the balance sheet is suddenly much less of a concern. So, it's certainly not unreasonable to expect further share price growth over time.However, it's also important to remember that Rolls-Royce can be a very volatile stock. It's had multiple 50%+ share price declines over the past quarter of a century.Here are some noticeable ones:Between July 2001 and March 2003, the stock bombed 70%November 2007-November 2008: -51%December 2013-Novemeber 2015: -50%May 2019-October 2020: -87%October 2021-October 2022: -51%When we zoom out, volatility like this is actually fairly common in investing. We don't know when the next massive drawdown in the Rolls-Royce share price will happen. It could be next week or next year. Or perhaps 2030. But history suggests another is coming at some point.Non-linear progress hints at volatilityRolls-Royce's CEO Tufan Erginbilgiç has set out some ambitious profitability targets to be achieved by 2027.Source: Rolls-RoyceCurrently, the company is on track to deliver these. However, it has also warned that this trend will be "progressive, but not necessarily linear".So far under Erginbilgiç, progress has arguably been linear. But he's repeatedly warned about "geopolitical uncertainty, supply chain challenges and inflationary pressures". Any or all of these issues could worsen and quickly send the stock into reverse.The waiting gameCharlie Munger famously said: "The big money is not in the buying and selling, but in the waiting."Unfortunately, the waiting part can also be the hardest because there's the inevitable rollercoaster ride of emotions that come with it. I need to keep in mind that Rolls-Royce stock has declined significantly multiple times on the road to considerable gains. It could easily plunge again, so I have to be ready for that.But assuming nothing fundamentally alters the growth story, my plan would be to keep holding through the next downturn, and even be ready to buy more shares.

[pyglet] 22/7/2024 22:15

Where's the link for this

[standish11] 22/7/2024 19:50

IAG has selected GE Aerospace GEnx engines to power six new Boeing 787s for British Airways, marking the first time the carrier has opted for the powerplant on its Dreamliners.

A big reputational hit for RR. IAG following in the footsteps of ANZ by abandoning Rolls for GE for top up Dreamliner engine orde

Sadly RR rapidly losing market share for supply of Trent 1000 engines.

[mcunliffe1] 22/7/2024 15:09

An interesting article about the proposed Tempest. Whilst the report mentions RR as a contributor it does not state in what capacity. I would guess it's the power plant though. MBDA is mentioned in respect of missiles. This is the remains of Hawker Siddeley's site in Lostock, that then became British Aerospace before closing down and moving 7-8 miles south west to MBDA near junction 4 M61.

My wife worked at Hawker Siddeley's in the late 1970's. Test pilot I presume ;-)

[mcunliffe1] 22/7/2024 14:43

A good point thegrafter. Then I thought about my recent Solar Panel Feed-in Tarif payment that is, and has been, handled by EDF for some 13 years now.

This last payment was late and made to me by a cheque - remember those? They apologised and explained they were having problems with the BACS processing having moved to a new computer system.

This is the same EDF who is building the monster known as Hinckley. Fortunately, Somerset is far enough away from Lancashire.

[thegrafter] 22/7/2024 13:26

MC I think the big question to ask is would you rather have a SMR built by Rolls Royce near to you or built by someone else ? which would give you more reassurance regards safety ? I know what my preference would be , and most people in this country would associate the highest standards of engineering and reliability with Rolls Royce . PR is as important with this technology as the technology itself !

[mcunliffe1] 22/7/2024 11:27

I was curious to know how a micro reactor works in space. The video I watched was both informative and perhaps worrying.



My worry lies in the competition RR may encounter in the next year or two should this government drag its feet in awarding RR the SMR test build contract.

Radiant is one of the competitors:



I have to say, I am impressed by the concept of a factory manufactured and fuelled device, deliverable on a large flat-bed truck to a site and be operational 24 hours later.

[vikingwarrier] 22/7/2024 11:25

RR should go it alone with thE narrow body jet.

[1carus] 22/7/2024 10:46

Seems that Rolls is building in some future proofing as aviation will move to cleaner more efficient solutions.

[thegrafter] 22/7/2024 10:28

https://www.rolls-royce.com/media/press-releases/2024/22-07-2024-rolls-royce-awarded-national-space-innovation-programme-funding-for-space-nuclear-power.aspx?utm_source=invd-cas&utm_medium=email&utm_campaign=subscribers&utm_term=&utm_content=