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Sorry that was addressed to Toff
I wont be answering further, but please moderate what you put mate because you are misleading people. God forbid but people could end up spending money because of your words
your average would be approx 0.512p per share with a total of 3765 shares
er 1.5 for 5 is the same as 3 for 10. But moving on....
In your original post the SP would still be 1.15, the MC still £2.5bn (or whatever you said), the money raised would still be £2bn but your denominator would be reduced by over 3,000,000. So your calculation would change even though nothing is different in terms of the capital raised.
i wouldn't mind but I have seen you critisise people knowledge, education, intelligence and mathematical ability.
Soooo....
Too many messages to read through to work out what’s going on!
Say I bought £1k of shares now at £1.15p and took advantage of the rights issue, what would my average be?
Toff: Then it would be a 1.5 for 5, Not a 3 for 10
Err aren't those 2 equations the same result !!!
John
“What on earth are you on about Toff? So if the same £2bn was being raised by an RI at twice the price, 64p, then Rolls Current Value would be much higher because your denominator was smaller?“
If the shareprice rights issue were 64p
Then it would be a 1.5 for 5
Not a 3 for 10
Toff
Ha ha, just read the post by Toff at 13.31 and Pokerchips (correct) replies.
What on earth are you on about Toff? So if the same £2bn was being raised by an RI at twice the price, 64p, then Rolls Current Value would be much higher because your denominator was smaller? You are a legend in your own mind mate, and I don't want to insult you but please stop misleading people on this board who may think you know something. My career was in Actuarial and Taxation, and you are talking a load of manure. Made me smile though
I'm in for the rights today giving me an average 51p a share. I don't care if IAG etc run half empty planes, as Rolls get paid engine miles in the sky. Even if carriers are loading up passenger planes with cargo thats a plus for RR doesnt matter.
So I view RR as a better play than IAG. Plus the gov hold a golden share. No way the gov will let this fail going into Brexit.
Sure its brutal for existing shareholders, but I see upside after rights (prob 5p div so 10%). Only big risk is the rights has to complete for the gov to provide their suggested funding.
Not much of a gamble for me, when wecan pick up £15k of shares at Jan 1st prices (£6.81) for £1k now taking the rights shares.
Rick
zero chance - everyone lost faith in this company- they are doomed to fail as they will run out of money much before a vaccine and or flights return to normal
how the mighty have fallen and warren east will be sitting their wondering how it all went wrong and why did not take action months ago - pretty poor show all in all.
This really needs the existing SP to recover to 215 for any salvaging
If you look at a daily chart and add a 10 day and 20 day moving average the share price has been below for ages. Not saying TA works all the time but give yourself a chance and don't buy until its at least above the 10 day MA. Good luck
sensetalka - your logic for a future mass sell-off makes perfect sense, and due to the bleak outlook for aviation in the near future, the valuation and forecasting rule books have gone out of the window.
The best way to address that is via technical analysis, i.e. using charts - I'd recommend using both daily and weekly time frames. Such charts help visualise market sentiment. What you need to look for is a sufficiently convincing turnaround. Don't ever try chasing for bottoms.
I'm also looking with a view to investing. Don't feel confident right now. From what I can gather each shareholder is being given option to by 10 additional shares for every 3 they own at a price of 32pence. As most(if not all) shareholders are down massively right now I can only assume that when they're allocated those 32p shares that there will be a mass sell dragging the SP down to around that level from whatever level it is at, at the time.
My best guestimate (based on nothing technical) is that somewhere around 50p would be a good place to buy-in. Could anyone with more knowledge advise on that please?
Thanks
Posted this link a few days ago and the 2022 earnings per share EPS forecast has slipped a bit to 19p per share. That'll be before any RI so you can probably say 19p/4 after RI . So 5p EPS for 2022.
Price earnings ratio PE of 10 is reasonable for an engineering company just ticking along. I'm looking at the 50p mark as a fair price by end of October. 10 x 5p. Anymore depend on recover which should happen eventually but 200p share price looks years away. Good luck everyone.
https://www.marketscreener.com/quote/stock/ROLLS-ROYCE-HOLDINGS-PLC-4004084/financials/
Hate to see the demise of a great UK company. I'd love to invest here but can't see where the bottom is in terms of share price. Sub £1?
The rights issue is the tip of the iceberg
“Most importantly, the 5 billion refinancing unveiled by Chief Executive Warren East on Thursday puts paid to the question of failure due to the mass grounding of airline fleets by Covid-19. With 2 billion pounds of new equity and up to 3 billion pounds in additional loans and guarantees, East has more than enough in the tank to get through the worst-case coronavirus scenarios. Even if 1 billion pounds of operating cash is incinerated next year – possible, but unlikely – East would enter 2022 with a 7 billion pound-plus financing cushion. Vectoring in disposals, it could top 9 billion pounds.”
Steady decline !!!!
You mean like a RR's jet engines on a chartered plane landing at Heathrow!!!!
Jp Morgan coming out and saying they will need more cash than this has sent this on a downward spiral
To be honest it doesn't really matter much.
Once it passes 23 October, and you can't get cheap rights issue shares, who on earth would pay anything more than 60p for this, as for most of this month you'll be able to buy it for about 50p.
Therefore I find it hard to understand how the SP will manage to stay above say 60p in a few weeks time.
I think it will be closer to £1.20 than £1
Might see this fall to £1 today . On a steady decline hope everyone got out
" I didn’t overlook the £2 billion capital raise. But that won’t be reflected in the market cap That will be allocated for cash burn to keep Rolls solvent "
errrr right.Toff.... I believe you (not) . well.. if you dont want to be accused of being "misleading" then maybe you should have written a footnote !! ..because without it..it was "misleading" !!!
Toff
NO!.... If you are going to use the 8,3 billion shares then ADD in the £2 billion raised onto the MCAP
That is what the TERP is all about
I didn’t overlook the £2 billion capital raise.
But that won’t be reflected in the market cap
That will be allocated for cash burn to keep Rolls solvent
Toff
As of now is 36.38p per share
Based on SP of 115
Calculated by dividing market capital value by number of shares.
MC 2.5 billion
Shares 8,367,641,043
Obviously the 36.38p value will drop as the current SP plunges
And it looks like it could hit £1
Toff
NO!.... If you are going to use the 8,3 billion shares then ADD in the £2 billion raised onto the MCAP
That is what the TERP is all about
As of now is 36.38p per share
Based on SP of 115
Calculated by dividing market capital value by number of shares.
MC 2.5 billion
Shares 8,367,641,043
Obviously the 36.38p value will drop as the current SP plunges
And it looks like it could hit £1
Toff