Chris Heminway, Exec-Chair at Time To ACT, explains why now is the right time for the Group to IPO. Watch the video here.
I agree. All I think is it still has 50 points to go. I don’t think it’s bottomed yet. They can talk about restructure & cost cutting, have you ever worked in the industry? Worked for RR? Do you appreciate it’s much easier said than done?
Do you appreciate that with lower numbers in manufacture & overhaul it increases the businesses base operating cost via lower throughout which will translate as lower returns on investment when those engines go into service. If you’d ever worked the shift patterns you’d understand this, why it was the most cost effective way. Lower demand in their products translates to an increased product cost which translates into lower returns in commercial going forward, so even when the industry returns to 2019 levels there will be a lag in RR showing the same levels of profitability
I love RR & it’s products, but as I said earlier, I don’t see a single thing on the horizon that would lead me to think the share price doesn’t have a little bit to go till it bottoms, I’d predict 2-4 months after H2 results may see the bottom
I don’t really see why you seem to be taking it so personal. As someone posted earlier and I agreed there really does seem to be a lot of emotion attached to a lot of the posts
I worked for RR for years and have worked in the industry list of my life, I like many others have lost their job in the industry due to this pandemic
Do I think RR are doomed? Of course I don’t
Do I wish them to be doomed? As an engineer, a British person, an industry enthusiast, as a person who has friends working g their at risk of their jobs, of course I don’t wish them to be doomed no more than I think they are doomed.
But emotional attachment to the company the industry my friends and former colleagues who work there, I don’t see anything in the near term to lift the price and I honestly think it has another 50 points sell off in it
Yes I appreciate volume is low, but that doesn’t mean that supply v demand is not what dictates share price. To say otherwise is naive. That’s ALL that moves share price, regardless of volume
Come back to me after H2 results
RR is currently ÂŁ2 and has fallen from ÂŁ10 the last 24-18 months because more people are willing to sell than wanting to buy
P.S anyone selling at £2 is not “happy” so sell at £2 (unless they bought for less a long long time ago, which I doubt
People are selling at £2 because they can’t take the pain of their losses any longer, if not they would hold till the sector recovers midway through the decade
I don’t know how investing/trading works?
What dictates the share price?
Supply v demand
If you don’t understand that basic dynamic then I’m afraid it’s not me who doesn’t know how the market works
For example if I own 5,000 RR shares, do I get whatever price I want if I decide to sell?
Of course I don’t. I get the market price
Market price is set by supply v demand, nothing else
If the “majority of investors” held stock to “ride out the dips” there would be no dips, or only very very very minor ones.
I’m being asked if I know how trading works by someone who obviously doesn’t understand themselves
Supply & demand in its purest form
RR lost 80% of its value because far more people wanted to sell the stock than people willing to buy
It’s really that straightforward
If the “majority of investors” are happy to hold the shares to ride out the dips, can you explain why the stock has lost 80% of its value in a couple of years
I assumed stock prices moved with supply & demand so I’m interested to hear your logic as to how a stock can fall 70-80% with “most investors” hanging on
Do you know how the stock market works?
Yes there are investors. But people are commenting on 40 mil buys as if new investors are queuing up, which obviously they are not or the stock price wouldn’t contribute to fall
They will need a govt bailout or a rights issue at the rate of the cash burn v income
I shorted at 215 and confident it’ll get to at least 150
Yes I understand trading.
If more people want to buy than want to sell price goes up
If more people want to sell than buy price goes down
I’m reading sentiment posts (because it’s a U.K. company) someone say it’s “world leading” when the reality is they’ve always been number 2 or 3
I also wouldn’t put them in the same bracket as all aerospace companies at the moment, due to;
Very small footprint in single aisle engines when that’s recovering already and will much quicker than long range/single aisle
Massively reduced flying hours = massively reduced revenue, longer time between service (in actual days not flying hours) and less spares
I think some 2019 H2 power by the hour numbers will be in 2020 H1 results due to payment terms, and the H1 results were abysmal
Added to the farce in marine propulsion the Trent issues (the stick was already losing a lot of value pre Covid)
Oh and Warren East