Member Info for 100notout

I did mention last week that RR would be a good buy for BAE. It would be the best solution in my book.

I wouldn't take much notice of the analysts recommendations as they are suited to their clients needs either sell side or buy side. Berenberg and JPM have increased their targets but look at the joke targets they had in the 20s. Some on here myself included did well buying in the 20s. This is still undervalued considering the recent finds. One thing for sure they will not be the last. We just have to wait for the latest tenders. Exciting times...

With the disclosed shorts that's the equivalent of over 14m shares to be bought back and don't forget there will be quite a few under the 0.5% disclosable level. All we need now is for MCRO to come out with some positive news and up she will go. Like I said I can see a bear squeeze coming on and it could be quite impressive. The hedge funds must be getting a little twitchy with the recent director purchases. GLA

This could hit 500 in the next few weeks as the hedge funds have built up big short positions. Once one of them starts to buy back the rest will follow. We could be on for a big bear squeeze. I think the fact that we have had some director purchases has rattled them as they are in the driving seat and have a much better perspective than anyone else including the shorters.

Fined $920m for market manipulation. I wouldn't trust anything which they said. Look into how they operate. It's a shame they weren't fined more. They should have closed them down...

RR is far too important to fail. Don't be surprised if you see stories concerning a merger with BAE in the next few weeks as it is a possibility than hasn't been discussed. The current mkt cap of RR is not far away from its annual R&D spend. The government has golden shares in both companies...

Do people on here realise that in order for hedge funds to short they have to borrow shares. Do you think for one moment that the owners of the shares aren't going to ask for them back?

As the shorters know that the lenders will want their shares back before the XR date...
Do your own research and look into it...

New funds will want to get in before the XR date and lenders of the shares on loan to shorters will want them back before the XR date. So there is a lot of potential for a share price increase. I wonder how many million's of shares will have to be bought back...

I will certainly be taking up the rights. There seems to be a lot of misinformation on this board and I urge Investors to work out the rights issue. It is fairly straight forward.
Surely the lenders of the shares on loan to the shorters will want their shares back as they will want to take up the RI as they will be buggered otherwise...

I think that the hedge funds were counting on a RI and the purchase of shares from the new CFO is a sign that they are unlikely to have one. Good to see them past 250 at least. I am looking forward to the next update as I don't think its going to be as bad as some might think.

Bab**** are one of the most shorted stocks. The known amount of shorts above 0.5% is 5.75% but there will be many more below the 0.5% level. I would be surprised if there are less than 50m shares to buy back. To put it into perspective there has been about 1m traded today to push the price up 7%. Its up to BAB to come out with a half decent update and then we will see some proper movement.

Mellors must be impressed with what he has seen so early on. This must be on the radars of a few investment funds at this price. They will probably wait it out until the announcement but at least it's looking a bit better here.

Mellor's appointment has gone down positively with the market. Lets hope the next update contains a few positives...

Crocqman - Yes, you are right the same could be said for the JP Morgan analyst. His success rate is absolutely shocking. It is best for any investor to do their own research and analysis. The negative posters must have a lot riding on their shorts to be so concerned posting so many times a day either that or they are being paid per post.

Falkland - IAG are different kettle of fish. RR are more diverse and have military contracts... Although RR could go down the RI route it's not a certainty. With the share price languishing at these levels the bod would consider pulling it. The government can't afford for RR too fail so they would be forced into the situation if they liked it or not especially considering the importance of national security.

Toff -
"It all comes down to how much you paid for a share. If you’re bought Rolls at £1.50-£2 the chances are you’ll be alright. But at £4-5-6-7-8 you’re f**ked."

My average is below £2.00 and for your information if they went to zero I certainly wouldn't be f**ked. My portfolio is in profit overall so your suggestion to me of putting my funds into a saving account is rather ludicrous.

Toff - I am not worried as if they do go down more I will continue to add. I fortunately sold part of my Sibanye holding off a few weeks ago at ZAR 57 which cost me less than ZAR 15. I'm not talking of a few thousand shares.... I am a patient investor and will hold for as long as it takes...
Have you had much success recently?

The easiest way to catch a cat is to wait by the mouse hole.

It is now Wednesday and there has been no confirmation of a rights issue by RR. Surely if this was high on the agenda of priorities they would have announced it on Monday morning as the BOD must be aware that they are under a short attack. I think that if they don't issue the terms of a RI this week it probably won't happen. They must be busy discussing other options with banks, Government and interested parties.