We would love to hear your thoughts about our site and services, please take our survey here.
London South East prides itself on its community spirit, and in order to keep the chat section problem free, we ask all members to follow these simple rules. In these rules, we refer to ourselves as "we", "us", "our". The user of the website is referred to as "you" and "your".
By posting on our share chat boards you are agreeing to the following:
The IP address of all posts is recorded to aid in enforcing these conditions. As a user you agree to any information you have entered being stored in a database. You agree that we have the right to remove, edit, move or close any topic or board at any time should we see fit. You agree that we have the right to remove any post without notice. You agree that we have the right to suspend your account without notice.
Please note some users may not behave properly and may post content that is misleading, untrue or offensive.
It is not possible for us to fully monitor all content all of the time but where we have actually received notice of any content that is potentially misleading, untrue, offensive, unlawful, infringes third party rights or is potentially in breach of these terms and conditions, then we will review such content, decide whether to remove it from this website and act accordingly.
Premium Members are members that have a premium subscription with London South East. You can subscribe here.
London South East does not endorse such members, and posts should not be construed as advice and represent the opinions of the authors, not those of London South East Ltd, or its affiliates.
Shamrock123
The point with AM and RR is that you can produce fantastic products but as potential shareholders what matters is the balance sheet
AM has always struggled with its balance sheet and at present so is RR ...whether you see that or not is up to you....the end of year balance sheet for RR showed a shareholder equity value of MINUS £3.3 Billion ... £15 billion of revenue yet a shareholder equity value of minus £3.3 billion... ..that is the point...whether you need their products or not .. and this year of course hasnt made that any easier or rosier ...they have had a lot of bad luck ..but..despite all the fantastic products..the balance sheet hasnt turned out very well of late ..which is really the shareholders main concern ...
That is merely the point I am refering to....of course things can change ...but..fantastic products dont guarantee anything as the current balance sheet shows
Correction* as long as revenues exceed variable costs
Pokerchips I don’t agree with your response to RedBox there is a big difference between Aston Martin and Rolls Royce. Many people don’t need a fast luxury car however when I travel abroad I need there to be engines on the plane. Another example is from one of Rolls Royce’s 5,000 power and nuclear customers - Irish rail, which needs MTU power packs in order to reach sustainability targets. Furthermore, Rolls Royce provides its products to 160 armed forces and 70 navies which require their propulsion systems.
Rolls Royce has just won an award for Outstanding Industrial Security Achievement in the United States. This could lead to more contracts especially as the next stimulus package is meant to increase defence funding.
Also you mentioned that additional help from the government to the aviation industry is not good. I struggle to understand that. Yesterday there were 67,000 commercial flights tracked. Government help is definitely good as it keeps people employed and helps to prevent bankruptcy. Although airlines are losing money because they don’t have many passengers travelling it is important to recognise that they will continue to operate flights if their revenues exceed their fixed costs which is good for Rolls Royce. In 2008, everybody said the bank shares wouldn’t recover but they did. Travel Will be the same.
shahpd,
Assistance to the US aviation industry isnt good news - it means that the recovery in passenger numbers is not as fast as previously hoped and that the cash burn is still too high ...American Airlines share price fell 15% in July so the boost now is largely a recovery of some of that July fall ....share prices are mostly driven by "hope" and "fear" at present ...as a result of an uncertain few months ahead....investors taking their pick on which side to be on...
Here - hope/optimism = cheerleader , fear/concern = troll
dont know how the market is working as RR is not responding to any assistance to aviation industry thought yesterday's bounce would have continued but its going back down again so its all now personal choice of believing if the company is doing good or not and sticking with it or getting out if you see downward its all about long term investing over short term for many people and they should get benefit in long run anyway
" Rolls Royce is and always has been a quality company creating some of the world's best engineering products "
well you could argue that can be said with Aston Martin and fast cars.....it aint the product ...it is the balance sheet that counts ...at least when it comes to being a shareholder ...
"Unfortunately for you Rolls Royce and Amazon won’t decide the recovery so maybe you shouldn’t have such a narrow minded outlook on the economy. Absolute Joker"
wow, you are really something ..I would stop now before you embarrass yourself further.... I am more than happy to be a joker in your eyes, not a problem to me... call me whatever you want..i have thick skin..go for it
LOL Pokerchips I know you aren’t looking at the markets as whole you are talking about amazon for some reason! Unfortunately for you Rolls Royce and Amazon won’t decide the recovery so maybe you shouldn’t have such a narrow minded outlook on the economy. The statement was regarding the overall recovery not Rolls Royce solely and certainly not Amazon as that is completely irrelevant on this forum. Absolute joker!
" You need to look at the markets as a whole."
you can Shamrock123 - I would rather not, thanks all the same ...each to their own
As the markets cover many sectors it is important to keep a statement like that broad. You shouldn’t look at what each individual stock is doing I personally don’t care if Jeff Bezo sells his shares. I don’t think that Jeff Bezos controls all international markets. You need to look at the markets as a whole. Obviously travel stocks for example will be slower to recover. My statement was regarding the overall recovery and the markets are currently pricing a V shape. I left my personal opinion out of my statement as it doesn’t matter. It only matters what the markets are doing. I personally think the overall recovery will be a U shape as people can leave their jobs quicker than they can get them back and businesses can close quicker than they can reopen. I don’t think it will be a W shape because we have learned how to deal with a surge in coronavirus cases and I don’t think it will be an L shape because governments are engaging in counter cyclical fiscal policies.
USA airline stocks went up because a bail out makes them less likely to go bankrupt.
The fact though that they are talking of further assistance isnt good though..how can it be?
They are burning through tens of millions of dollars a month and will need financial help to get through the winter - otherwise thousands of redundancies are the only alternative.
" and right now the markets are pricing a V shaped recovery." - well, the markets cover many sectors and it is quite a general statement to think they are pricing in a V shaped recovery...look below the surface and scratch around a bit and you will find evidence that that isn't truely so...
Jeff Bezos just sold $3B of Amazon stock .-
Webb’s you told everybody on the forum lastt week that you’ve sold your shares in RR and now you are clearly trying to create fear. An L shape recovery is very pessimistic as the financial system isn’t in big trouble compared to 2008. Credit is flowing and governments are not doing austerity. But most importantly it doesn’t actually matter what we think about economic growth numbers it matters what the markets are doing and right now the markets are pricing a V shaped recovery. They’re assuming however bad the economy gets the central bank and governments will come in to support it.
Well that bounce lasted long lol I wonder what letter recovery the economy is doing now, I am going for L
Great news this
Rolls has struggled getting past £2.50 hit £2.10 this week.
This should take us into £2.70s
Hopefully quarantine loosened next week should see us pushing £2.90
Trump says he's in favor of plan to give $25 billion more to struggling airline industry
https://www.cnbc.com/2020/08/05/trump-says-he-would-back-plan-helping-airline-industry.html?__source=iosappshare%7Cnet.whatsapp.WhatsApp.ShareExtension
Nice we are due a 10% day
Shorters gonna be crying into their cornflakes tomorrow!!
News arrticle yahoo finance.....FED providing huge stimulus to airline aviation industry...shud help RR tmrw