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If I thought that posting comments on this forum leads to stock market moves in multi billion dollar companies then I’d seriously reevaluate what I did with my money
I’m sure hedgefund managers and pension fun managers aren’t getting their stock analysis from LSE shares chat forum
I can speculate revenue will be bad Q3 because
Commercial revenue was down ~50% H1
According to H1 report that was split 25% Q1 & 75%?Q2
Given customers don’t pay for flight hours instantly then I’d probably be willing to bet e wry thing I own that Q3 will be better than Q2 (-75%) but worse than Q1 (-25%) given the speed of the recovery in the industry (Heathrow only announced last week August was ~80% down on July)
Divide how much cash they burned through in H1 by 6 months (less the one offs) and extrapolate across Q3 & Q4 given the recovery is near to non existent in long haul/wide body
Have t you been watching the news? People are prevented/restricted/scared to fly
There are hundreds of companies to choose to invest in. Why would anyone buy into a company burning cash at an alarming rate who had a going concern warning added into their half year when they could invest in a company making money?
Cr*p answer lol what answer do you want
Unless it’s a new tech/bubble stock only profit is going to drive up the share price when those profits create demand for investors to buy in
RR has been around forever it’s long past it’s speculation stage so give me a reason at this point in time why investors would invest other than “it’s RR” “it’s cheap” “it used to be 800-1000”?
I don’t know if a lot of posters here are employees ex employees or have bought all the way down or Golding it since before covid19 or what, I’m just saying impartially & rationally if it wasn’t RR or a company you knew would you invest in this situation at this moment in time?
You can’t find a valid reason for today’s drop?
Supply outstripping demand was already pushing the SP lower, then I’d guess a nice round number like 200 would be a stop loss for lots of investors, as soon as that was hit then that’s a while more batch of supply hitting the market when their positions are closed
That’s my guess anyway
RE: ResetToday 12:46
“You know everytime I think its hitting rock bottom, falls like this
My rock bottom was predicted around 205, so yhis is even more compelling !!
Its so volatile that anything can happen, however There seems to be positive covid vaccine news from russia and china, but they are not being backed by western countries and the market ,
LETS HOPE THIS iS THe LAST of low downturn
Fascinating to see the volume.numbers of.shares traded are nowhere.near total shares which means alot of.people.are sticking on not selling at these.prices.....
Im 35 percent down, but am fortunate that other shares have risen and balanced out this loss”
200 was a round number. I guessed that there would be a lot of stop losses there. When supply is outstripping demand and prices are going down, what’s going to happen when a bunch of stop losses are hit people’s trades get stopped out and a bunch of new supply comes onto the market as a result?
That’s the reason it dropped so rapidly after breaking 200.
No bad news required.
Supply & demand in its purest form
“A touch of long term positivity from you Gaz is welcomed! Sounds as though you wouldn’t disagree with the current price (Or price in the next month) being a decent entry for a long term view?”
I’m wary of buying just now but I’m 99% certain I will be at some point
JP Morgan analysts were well below the general consensus of other analysts, so far they are looking like they might be correct, but anything can happen
Long term I think it’ll do well but it might not have bottomed yet.
Those power by the hour contracts are a heavy weight to carry. Flying hours were down ~50% H1 but that was split 25% Q1 & 75% Q2, considering payment terms I’d imagine Q3 to be better than Q2 but still a lot worse than Q1
I think after full year results either immediately or within 6 months will be a good time to buy. Just my opinion
I know the power by the hour revenue model well and what has happened now is the sole worst thing that could’ve ever happened. Other businesses could begin to plan 100% for recovery but these contracts and the pandemic make that harder for RR management in my opinion
" Luckily RR will not be affected by Brexit"
“They have currency hedges, against the euro and dollar ...so Brexit and its affect on those currencies and the pound..can definitely affect RR ...amongst other things....”
Those same currency hedged they took >£1bn hit on this year?
Gaz, Whats wrong with you?
“Most of RR's products are stock to an aircraft, so no problem at the ports and such as it flies over ports”
Does RR manufacture or source every piece of raw material or every component or sub assembly that gets assembled into an engine within the U.K.?
I’ve not worked there for years but I doubt it. Therefore there will be added effort required for raw materials, parts and sub assemblies being imported via EU
No tariffs but there will be extra effort required. Extra effort = extra cost