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thegame316
I wonder if this , is, as you say about getting the Arabs to invest in RR ....in order for them to become non-nato allies (like Qatar) ..which then means they get preferencial treatment on defence contracts and military hardware.....which then strengthens the Aliiance against Iran
who wants ITP - who can afford to pay for ITP- ITP was a jewel in the crown for RR when they aqquired it- if they have to sell it then desperation kicks in
who in their right minds would buy shares in a rights issue on a failing poorly managed plc in such uncertain times however great the price is,
Keep saying RR board need to tell the public,shareholders and customers there position which must be an audited position by approved accountancy company- not some flimsy RNS saying we are reviewing stuff- that does not inspire confidence.
Warren east should go together with the rest of the board and new people come in and shake this company by the horns and turn it around.
warren East got paid 3.9 million pounds last year !! - and he is sitting there letting one of the most famous prestigious engineering companies in British history go down the s h i t t e r
" trump and biden - 400 milllion people and these 2 clowns are the best they can offer to be president - shows what a disfunctional country america is !!!!!!!!!! "
I think with Biden, as with Obama , you will see it isnt Biden you vote for...you are voting for a Democrat Administration ......at present you dont have an administration..you have a dictator and a self obsessed liar.....
Nothing is too big to fail in this market but lets see, we only have two viable options right now rights issue and government bail out.
The question isn't what price a rights issue offer will be, it's whetever it will happen or not. At the moment the official line of communication is that the bod are looking into various options but nothing has been decided yet. IMHO if there was going to be a rights issue it would have been announced by now.
RR has over £6bn in liquidity so its not like they are strapped for cash. They could just be waiting for air travel to improve a bit more before announcing they dont need any funding or they could announce a sale of ITP. Nothing is for certain but the market does not like this hence the drop. The fundamentals have not changed though. If a rights issue is announced then at least we will have closure but again i'm inclined to believe that it is more likely a sovereign fund will provide the debt without any dilution. This is from the FT:-
"Rolls-Royce is in talks with sovereign wealth funds, including Singapore’s GIC, as part of a plan to raise around £2.5bn from investors next month, according to three people with direct knowledge of the matter. "
Also from the same artice-
"However discussions over the equity raise are ongoing and one person cautioned that the board has been determined to push the decision to the last minute. "
This indicates that the bod are hoping for business to continue its gradual recovery so funding is not required. But everyone will have their own opinion on this.
"UK government dont have the money to support and prop up businesses anymore we are 2 trillion in debt so far."
once you get to 2 trillion ..another 2-3 billion is neither here nor there....look at Japan....
trump and biden - 400 milllion people and these 2 clowns are the best they can offer to be president - shows what a disfunctional country america is !!!!!!!!!!
If you look at say Costain.....they announced a right issue would be forthcoming but no price was issued.....the share price fell to 32p as the speculation mounted.....only for the rumour to spread that the RI price was to be much higher than that...
The SP bounced and went up to about 80p ..beofre the RI price was finally announced at 60p
Any RI price isnt decided by the share price....it is decided by those offering to raise the cash....--it could have been talked about as 150p when the SP was 200p ...who knows...
think they are at the point of no return- the market is self capitulating in downward spiral and no barriers to support it.
we may see levels next week or 2 close to that 100p level -if that happens we all know they are in serious trouble.
UK government dont have the money to support and prop up businesses anymore we are 2 trillion in debt so far.
they need money for people medical and also police and armed forces- i think you all know which way this is heading.
127 would a really good price, but look at other rights issues across the market and 50%/60% discount seems to be a norm.
Based of rights issue of £2.5 billion
@ current SP 143
Rolls would need to issue one new share for each one in existence @127
Which would equate to shareholders paying £8900 for each £10,000 they hold.
Toff
Next week , there is the first Trump v Biden debate and it is quite possible that a new covid stimulus package will be decided in the US too... I believe the US Congress sits until October 2nd, before they begin the pre-election period ...so.. a stimulus package "should" get finalised before then.... talk of $2.5 trillion
Take your bets as to whether you think "events" next week will lift the market
Valid answers
They dont need a RI yet...but... if they decide not to sell assets because the offers for them are likley to be poor , then that could placate the decision to raise funds when the moment arrives....
They have known all along and made decisions accordingly that the airlines wouldnt return to normal for 2-3 years.....they have taken drastic action....but...they may decide that in order to ensure client orders in defence etc they need more working capital etc.... although they do have a lot of cash to tap into...
Cash burn hasnt changed in the last 2-3 weeks , nor has the schedule of getting business back...there was ALWAYS the talk of a difficult winter and covid/flu......the recent covid case outbreaks have not changed that preparation/awareness...
It is more than anything investors just selling and wating to buy back lower down ....there is no profit from RR for a while so the only way to make share investment gains is to buy more shares for your money at lower prices....
Not really , it was more like a statement to calm investor's nerves down to put a stop to ongoing sell off.Reuters reported in July that company is in discussions with banks to raise 2.5 billions through rights issue .Who leaked that info to Reuters? Share price has been falling since, I assumed that company would announce this in its August update.
RR still is exploring options as stated by management twice last week they are engaging with sovereign wealth funds and exploring forms of debt issuance
Rights issue is a certainty and although banks lending these guys some money would be a bettet option for shareholders.Company would have explored all options.
I don’t think a RI is certain but if it were to happen I presume they would look for 1-1.5bn from investors and raise another 1bn through debt. That’s just my guess
My guess is around 100 but where would company get the money from to buy back these shares when it is struggling to survive?
With the tanking and at some point the inevitable rise of RR, what are we looking at in terms of diacounted buy back offer