Rolls-royce Share Discussion Threads

[bingaxu] 19/10/2020 12:22

Europe's aviation regulator said on Friday that the Boeing 737 Max is safe enough to return to the skies before the end of the year following two deadly crashes.Patrick Ky, executive director of the European Union Aviation Safety Agency, told Bloomberg that after test flights conducted in September, the agency is performing final document reviews ahead of a draft airworthiness directive it expects to issue next month.There will then be four weeks of public comment, while the development of a so-called synthetic sensor to add redundancy will take 20 to 24 months, Ky told Bloomberg in an interview. The software-based solution will be required on the larger Max 10 variant before its debut targeted for 2022, and retrofitted onto other versions."Our analysis is showing that this is safe, and the level of safety reached is high enough for us," Ky said. "What we discussed with Boeing is the fact that with the third sensor, we could reach even higher safety levels."The Boeing 737 Max was grounded in March last year after two crashes that killed 346 people - Lion Air Flight 610 in October 2018 and Ethiopian Airlines Flight 302 in March 2019.Boeing shares were up 4% in pre-market trade, while shares of aerospace and defence giant Rolls-Royce, which builds engines for Boeing, rallied on the news, trading up 9% at 212.75p at 1205 BST.

[ntbb] 19/10/2020 07:51

Kmk is worth a look

[sbs] 18/10/2020 20:38

The new price is still 32p/share.

The equivalent price in p per share post rights is:
(3x221 + 10x32)/13 = 75.6

[sbs] 18/10/2020 20:37

[It doesn't understand × is x on my phone!]

[kasamavic] 18/10/2020 19:41

So if we used the current price of 221p does the new issue price change from 32p and what would be the new value of the combined shares?

[monte1] 18/10/2020 19:38

You are wrong - and no it isn’t.

[kasamavic] 18/10/2020 19:22

I am probably wrong on these figures but, when the price dropped to 100p taking up the offering at 32p took the effective price to 77p per share.Now the price has risen to 200+, what is the combined price of the shares.Is it as simple as saying 177ish?

[gunsofmarscapone] 18/10/2020 12:22

vtrt yes of course that is a brilliant idea, go for it! Incredibly you have spotted a loophole in the system that literally hundreds of derivatives platform operators and institutions have missed!

Best of British to you.

Typo, yes I agree and also I am far from sure that the recovery will succeed with respect to the survival of ord shares in any future fundraise. All I can add is that a massive short term valuation gap existed when the share price was systematically and egregiously trashed. There was the opportunity. Next week will be for mainly institutions to buy in after conducting professional due diligence, able to take the long term view.

Can RR remain in the Ftse100? Needs something around 55p to survive right the bottom, in the relegation zone. I think it will.

[vtrtl87] 18/10/2020 11:02

This may be a very silly question, but wanted to throw it out there: the upcoming rights issuance is being priced at a significant discount to the prevailing stock price (above 200). Can any argument be made against taking a short position on the stock days before the rights issuance? A dilution / drop in the share price is guaranteed to occur then right? Or am I missing something obvious here...

[vtrtl87] 18/10/2020 11:01

This may be a very silly question, but wanted to throw it out there: the upcoming rights issuance is being priced at a significant discount to the prevailing stock price (above 200). Can any argument be made against taking a short position on the stock days before the rights issuance? A dilution / drop in the share price is guaranteed to occur then right? Or am I missing something obvious here...

[typo56] 18/10/2020 07:05

TBH Guns I'm not sure if RR. is a good investment here or not. I don't think anyone really knows and I don't usually attach much credibility to anyone on a bulletin board who knows something for certain!

I would think that they'll be further fundraising down the line (unless they get taken over before then). I'm not sure that matters too much though for investors. I think the purpose of a fundraising is more important than the fundraising itself.

One thing I'd be careful of is thinking, "The Government won't let it fail". That may be the case, but it does not mean if it came to the crunch they'd protect ordinary shareholders from being wiped out. I recall seeing similar arguments with Carillion and Interserve and probably Marconi many years ago.

IG have produced a helpful overview of the RR. rights issue. Note that the important date for qualifying for the rights is close on 27th. The record date is irrelevant for most investors these days.

[sbs] 17/10/2020 19:12

Is that the shorter gone then?

[typo56] 16/10/2020 16:11

That's true, neither date is critical for someone intent on taking up the rights. It is important though for those trading around the rights.

I agree you may not be interested in reading the prospectus from cover to cover, but if you're a serious investor it contains a lot of useful info, and it's quite easy to speed read most of it.

[gunsofmarscapone] 16/10/2020 15:49

Good point Typo, although none of it is relevant to an investor with a digital nominee account taking up a position with the intent of participating in the RI. All they have to do is to instruct online in good time before Nov 11.

Not much point in reading all 300 pages plus of the prospectus unless totally bored!

[typo56] 16/10/2020 15:20

The record date is irrelevant for most private investors. It's mildly relevant if you hold shares in certificated form. It determines who receives the provisional allotment notices, but if you receive a provisional allotment notice and you've sold before 28th Oct, the entitlement belongs to the buyer and you should forward it to them. It says this at the start of the prospectus.

[gunsofmarscapone] 16/10/2020 15:11

Both are relevant I suppose, if intending to take up full RI entitlement.

[typo56] 16/10/2020 14:48

It's the ex-date that matters, not the record date. Hopefully on-one will sell before 28th then whinge to their broker about not receiving rights!

[younasm] 16/10/2020 11:48

I didn't expect short covering to push the share price above 220p; hopefully this will drop back to 200p by end of day.Options expiry today.

[gunsofmarscapone] 16/10/2020 11:12

Indeed but we need a few more trading days before the record date to observe how the professionals value Rolls Royce. Quite hard to call given the surreal times that we live in.

Taking the long view this particular Coronavirus will resolve to endemic equilibrium ie every year it will cause casualties, just like Winter flu does!

[tradejunkie2] 16/10/2020 11:07

Shorters covering and roasting people short.

Brilliant.