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Toff...
Can you just clarify something for me?...are you a millionaire?
Shadow
“You obviously do it to generate traction and keep yourself busy”
No not at all. Unlike others with negative views on here mine are backed up with possible and probable outcomes. Bear in mind I don’t needlessly trash Rolls like others because I think it’s a great company.
I’m merely being objective about their current plight. Anyone with knowledge of markets would know that - but on here my posts have become chilling prophecies among the “fearful”
And even though my 150 prediction came true last week and my 130 prediction for this week is looking likely, the ‘fearful’ are terrified because they’re accurate.
Sadly they don’t have the brains to distinguish the different between what I think will happen and what I want to happen.
Toff
"That’s not quite the same thing "
of course it is....only difference is they confirmed a fund raise, but as yet RR ....HAS NOT
"Insolvency would lead to nationalization."
why stop there Toff..why not go on...take it all the way to the UK needing an IMF bailout and suffering a national strike and sterling devaluation
come on...let's make it all REALLY scary...we are heading for Halloween month after all
Poker
“price fell to 32p on fund raise speculation....then recovered to around 80-90p before a fund raise of 60p announced.“
That’s not quite the same thing. Fund raise was discounted 33 percent below SP. Since the market got wind on Rolls’ RI shareprice has plunged.
An even unlikelier scenario is that the SP will now rise to 210 and an RI announced at 140
The only way is down from here in my option
And I am rarely wrong
Toff
Toff...... you talk utter nonsense. You obviously do it to generate traction and keep your self busy, very sad man.
T*at
Toff maybe I suggest stop speculative answers , you need concrete statements
Their turnover is still strong in other areas, the a engineering, they are operational....
So the RI could be higher than the shareprice?
And the SP would follow suit and rise?
Two extremely unlikely scenarios.
That’ll be a first in market history - surely?
err no......just happened at COSTAIN ...price fell to 32p on fund raise speculation....then recovered to around 80-90p before a fund raise of 60p announced... they did say they would have a fund raise but gave out no fund raise share price...
Poker
“they just have to keep up their debt re-payments...like everyone else does...”
And herein lies the issue I’ve so eloquently highlighted. It’s when Rolls cannot make those repayments when insolvency occurs.
Cash burn - spiraling debt - revenue decline - losses - decimated balance sheet = tipping point.
Insolvency would lead to nationalization.
I’m not saying it will happen but the probability of it happening is there; it can’t be discounted. I’m sure the market knows that too - evident in the shareprice fall from £8 to £1.40
It’s what’s known as pricing in risk.
Toff
Hey Toff
They did a currency hedge write off of 4-5 billion in 2017.
Technically bankrupt, is not the best description.
From what I understand, a strong cash flow is needed to bankroll engineering projects.
All will be revealed , too much speculation on this site
Poker
“A fund raise could come at 150p..who knows....or 170p . and share price could react accordingly”
So the RI could be higher than the shareprice?
And the SP would follow suit and rise?
Two extremely unlikely scenarios.
That’ll be a first in market history - surely?
Rolls shareholders could end up paying more that the value of their share holding just to retain their tiny share of the company if that were to happen.
" Rolls are in survival mode. The conundrum now is how do they survive until the Covid crisis passes?
Rolls are in grave danger of insolvency - and if that happens nationalization will follow. "
well...you certainly like to write cliff edge scenarios....jeez...you should be a writer on a TV show....
" grave danger of insolvency"...
well if Victoria Beckham can run a business with losses EVERY SINGLE YEAR ..then I am sure RR can for do so for 4-5 years ....haha ...
.... they just have to keep up their debt re-payments...like everyone else does...
" if the share price falls much further they WONT be able to raise the necessary capital - and its highly like institutional investors would agree to it. "
the share price doesnt determine the right issue price.....that is determined by those deciding to buy any new issued shares ..
A fund raise could come at 150p..who knows....or 170p . and share price could react accordingly .....who is to say that the speculators have oversold what may be going on in any background discussion...
You are placing the speculators in the position of power ....why ??
Total liabilities now outweigh total assets be several billion - if that isn’t a perilous financial position what it. Very few companies are in that position. Even BT’s assets outweigh liabilities by £10 billion.
A FY loss of £5.4 billion has blown a hole in the balance sheet. The last balance sheet showed £5.685 billion but it has deteriorated since then.
Adding yet more debt to a company drowning in it isn’t the way to fund the running of a company. That’s why Rolls are in a desperate scramble to raise capital.
It’s true the rights issue might not happen - if the share price falls much further they WONT be able to raise the necessary capital - and its highly like institutional investors would agree to it.
No rights issue increases chances of nationalization dramatically. Rolls are between the devil and the deep blue sea.
Rolls are in survival mode. The conundrum now is how do they survive until the Covid crisis passes?
Rolls are in grave danger of insolvency - and if that happens nationalization will follow.
There are no easy answers.
Toff