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Sub 100 I agree. 30p entry price will happen next year.
Go and get a proper job instead of spending all your time on share chats and do something useful for the economy. get my drift!
£0....
exactly...I would stick to selling toilet rolls on Ebay if I were you...
£0....
"You tell a lot of other thing...why not the entry price? "
because that information isnt free of charge.....what are you offering for that data ??
You tell a lot of other thing...why not the entry price?
"pokerchips - chance of going bust ?"
Casa,
well bust means they are unable to carry out the day to running of the company with sufficient cash flow.....at present I dont see any immediate issue with that at all...and the company have stated the same.... so I dont see that is of concern right now..
" we would replace the £1.9bn RCF following its expiry in October 2021, with replacement funding of a similar amount. "
the situation needs addressing for H2 2021 ....but I dont see the need to make any decision at present ..they are being prepared ...and yes..if covid and/or the US election turns into a "disaster" ..who knows what may be needed...
I have no crystal ball but I dont believe they will make any funding decision yet ...and during October the share price could get back to 160-180p .... depends on covid/ Trump-Biden etc...... but..I think there are forces using RR as a hedge bet against other longs....a way of balancing bets.... oversold for now...funding requirement isnt immediately required.....
just my 2 cents
10p entry price??? Incredible. Anyone buying in at that point would need gigantic stones, RR would be worth about the same as ted baker.
Hahahaha
pokerchips - chance of going bust ?
Toff never lets the truth get in the way of a good story. Loves his drama and doom and gloom, keep it up toff very amusing from the oracle of stocks.
agreed price anywhere between 10-100 as s tarting point to buy in- so many people have bought in and lost so much money thinking they were getting a great price- RR as a company have been very irresponsible with the handling of their debt-pr-and keeping there share holders happy and informed- instead they are so arrogant they think they are u touchable- well guess what its going to come back and bite them-
"There’s a black hole in the funding"
There is no black hole as such ...there is total transparancy and detail of what liquidity is available for H2 - £6.1bn at end H1 plus a £2.0bn loan agreed in H2 - no decision has been made on any further funding requirements - only continued speculation ..they are reviewing options
*** we are evaluating the merits of raising equity of up to £2.5bn, through a variety of structures including a rights issue and potentially other forms of equity issuance. Our review also includes new debt issuance. No final decisions have been taken as to whether or when to proceed with any of these options or as to the precise amount that may be raised.***
" a rights issue on the horizon "
That is only press speculation regarding the size of a rights issue, which is aimed at driving down the share price - company has not made any decision on whether to raise further funds or not ...
"and probability of huge share-value dilution"
probability cannot be calculated as nothing has been decided and whether any shareholder faces dilution depends on whether they take up any share offer .. their initial share buy price will determine much of the extent of any potential capital paper loss
"cash burn at per £4 billion per annum "
This is NOT "per annum" - it is the estimated cash outflow for the current financial year , a lot of it being one off charges
"revenue has plummeted because of the virus"
revenue in H1 was about 24% down on the year previously...so approx 75% revenue remained as the year before
"no clear way out of the woods"
The company has detailed clear steps taken to find itself a path "out of the woods" ..in terms of reductions in employee numbers (4,000 group headcount reduction by 27 August) and cost savings...with estimated cost savings in 2020 to be £1 billion. (£350m delivered in H1)
"Their finances are in a perilous state. "
The balance sheet at present is not good...but...they have two main targets ...
1. to structure costs to equate with the new estimated revenues, something which has been positively addressed during H1 and continues in H2
2. To prepare for bond repayments/restructuring in the second half of 2021 ( $500m and 750m Euro ) and any undrawn RCF which they may draw on between now and end of 2021 .... this preparation is what the company is currently looking at....but..there is no immediate crisis or urgency in terms of needing to decide on that ..
"In your opinion what's a good price to start buy into RR then."
dont sign up and ask crystal ball questions....do your own research, make your own decisions...no one can tell you such things...
Sub 10p - As i am now mentally deluded like Casa/Gaz
sub 100
In your opinion what's a good price to start buy into RR then.
Jjb
How is the value of a share determined?
- The uptake of shares compare with outstanding (supply and demand)
- Assets value - debt
- Value of individual assets ITP / defence contracts
- Forecasted sales, revenue, profit / loss.
- Broker ratings / valuations
- media speculation
- or other
_____________________
There’re several basic metrics for valuing shares, such as the ones you’ve mentioned. The problem is when a company is in distress like Rolls those metrics break down/ they no longer serve as reliable valuation tools.
It’s the uncertainty that’s killing Rolls - and uncertainty kills demand for the shares. There’s a black hole in the funding - a rights issue on the horizon and probability of huge share-value dilution - cash burn at £4 billion per annum - revenue has plummeted because of the virus and no clear way out of the woods. Their finances are in a perilous state.
How do you value a company facing all those issues?
I wouldn’t like to put a price on it.
But I wouldn’t buy at any price right now.
Better to pay more and catch it on the way up then trying to catch it on the way down. And the bottom could be a lot lower.
Toff
Serious question for Casajaluma and ToffAppleton1.
How is the value of a share determined?
- The uptake of shares compare with outstanding (supply and demand)
- Assets value - debt
- Value of individual assets ITP / defence contracts
- Forecasted sales, revenue, profit / loss.
- Broker ratings / valuations
- media speculation
- or other
This topic may have been covered previously but interested to know from your perspectives
Newspaper article saids one pound placing but could b any amount . The higher the number the less dilution and we move on