Member Info for Andyjg84

Ignore, no need to answer this. Thanks.

Once shares are distributed that is

Thanks

Not all wishes come true I suppose :)
I do hope you closed your short...

Now that he has lost his shirt after today

Surprises me with the level of ignorance....

erm I’m in profit - if you net rights value with shares....

Yes I bought before, then added, elected to take rights in full and of it goes down further will add more. Averaging over time.

To add I’ve adopted an averaging approach over time - it’s hard to bottom fish but averaging for me is a safer play over time and generally works.

I see a lot of mixed messages here which is what makes a market. For those who don’t believe in this stock why don’t you simply sell and go elsewhere? For those that believe in it buy and hold. And for those looking for a quick trade (in and out) good luck with the volatility - some you won and some you will certainly lose. My view is medium to long term and I see RR becoming much leaner and in emerging stronger in time. Flights will come back - it’s a question of when - to pre pandemic levels perhaps will take time (5 years is a good timeframe to loom to and for medium to long term holders that’s the timeframe you should be looking at with any share you buy). My personal view, the sooner the weaker holders are out the better then that means the holders of shares are medium to long term meaning the price stabilises and when RR does become net cash positive again, reintroduces the divided and the pandemic is over we will see higher valuations to reward the medium to long term holders.

I’ve personally structured my holding to buy in between £1 and £2, take up full rights and if it does go lower will simply add more a bit at a time.

Another solid push - wonderful to see

Wonderful to see

“ RE: Amazing opportunity30 Oct 2020 08:06
Absolutely. In for a long haul. Planning onto buying more today if the price doesn’t move too much“

For a long term investor you seem inpatient - was only 3 days since your post above...

Understand you are frustrated but in time this should come good - Patience is key. GL.

For completeness, GS I see have a £1.25 target (12 months on the shares post RI), which represents 25% more than the recent £1 levels seen and ~78% upside potential from current Levels. Could even be more if this does recover longer term and reaches the £2/£3 levels mentioned here

£5 bn Recapitalisation Package
£2 bn Rights Issue
£2 bn Debt Issuance

To me this makes RR well capitalised and now focus can be on the company de-leveraging their balance sheet instead of liquidity concerns that were present and now eliminated in recent weeks and months.

The liquidity the company now has strengthens the balance sheet which puts RR on path to achieve a net cash position (but medium term in terms of horizon).

I was reading some broker reports and here is an interesting and quite welcoming statement from GS:

“To stress test this liquidity position, we apply Rolls's downside flight hour scenario to our current estimates to calculate potential additional cash burn. The company's downside scenario assumes flights hours at 35% of 2019 levels in 2020, 45% in 2021 and 80% in 2022. Simplistically, we estimate this would result in c.£800 mn more cash burn vs. our current expectations. This would still leave the company with c.£5 bn liquidity at the trough point in 1H22; as such we believe this recapitalisation package should mitigate major liquidity concerns for Rolls-Royce”

My personal view, is I think this will recover eventually but those invested need to be patient. I am long rolls Royce and will take up rights Issue. Yes if I sold last week I could have made a nice healthy profit but I’m still blue for now and horizon has always been medium to longer term as I invest and don’t trade.

Who’s new average will be 69p or below I personally think you will be ok and should take up the rights issue to make sure your existing holding remains in tact and is not diluted. Rolls is more medium term. If you want to day trade this I’m sure there I’ll be plenty of movement but very hard to pick peaks and troughs. Personally I’ll be taking up the rights issue in full and if it does go lower you could always add (not to go all in crucially) but to add sensibly. I personally think flights will eventually return one day - I like many people out there love to travel and you can’t get to many sunny places without a flight. RR is now wel capitalised and I forsee some shorter and sharper lockdowns potentially near term until airport checks and hopefully a vaccine come along.

Note: I certainly will be

Do you agree?

Is this the general consensus?

My personal view (as I’m a medium/long term holder generally) is option 1