Member Info for baronbog

Tomaaa
The majority of people on here haven't even fully read what he said. The media has focused on two words 'burning platform' (or 'burning bridges' according to some numties on here) to make headlines.
If you read the full story his message is pretty clear. Things need to change urgently at RR. Simple.
So why all the countless b/s posts on here about about two words? Its a complete waste of everyone's time in the overall scheme of things.

Tomaa
Unlike you, institutional investors are not snowflakes.
They will like what the new CEO is saying and will now expect him to deliver.
The sp run up in the last few months is 50%+ so a pull back is entirely normal.
RR. has a long history of great engineering products but poor profitability, c/f management, and countless strategic errors.
This CEO is shaking things up, people can be upset and offended but it's a tough world out there.
I think he is a great find and will given him the time to turn this company around.
So what if he trashes the previous management and takes all the credit when he delivers. If he gets this company up to match the metric of its peers, well bloody well done. Employees, investors and the UK will all be happy.

The research done by some of here is pretty appalling. I suggest, as a starting point you at least go to the trouble of reading all the posts on here going back a few months.
So, to recap, the new CEO’s remuneration package is significantly made up of share options granted when the shares were in the 70s range so, on paper he’s already up millions.
Second, given his age profile he will only be here for a few years (2/3 years, my guess) to do a very specific job of forcing through a huge cultural change at rr. Only cash flow, profit & ROI matter, … not orders (if they don’t make them money), nor new technology or prestige. Rr can /should be making big money on its current level of business ..l not waiting for China to open up or our government to guarantee a minimum electricity price for SMR. He is an absolute expert in this area as shown at BP and will achieve this in double quick time.
Third, the underlying results in feb will show targets missed (cash flow & profitability) but not by much. The real show will be the exceptional items which will drag the results into heavy losses (FX & investment write-downs etc) and then going forward there will be the costs to restructure. In the short term I suspect it’s going to be pretty brutal for the company and why the words ‘burning platform’ were used. If you looking for dividends this year, dream on. If you’re gambling on the sp doubling this year, sell out now.
I’m heavily invested and will be increasing if it drops back 20%.
At last now we have a decent, realistic operator who will transform this company over the next few years.

The US market rise today is just a repeat of what’s been happening the last few months.
Inflation reports, FED reports/interest rises announcements … markets see a strong rise that day followed by a heavy fall the next. As PSK says, 0.1% decrease is nothing, and could easily be revised in the months when they look at the data in more detail.
This is all just volatility for the professionals to make money. Their bonuses are coming soon!

Must be a small contract if they haven’t disclosed it value.

Pokerchips
Your posts have been excellent today, on point and a reality check to some on here.
Baronbog

PSK
Completely agree. I hadn’t done enough research on FLRAA and was expecting a full contract award announcement.
Understand now why the shorts are increasing.
At least the FX position is improving but otherwise there’s little joy on the horizon.
By the time China reopens, the US & EU will be in deep in recession reversing any benefits.
And I don’t buy this “the recession will be shallow and short” mantra, the full effects of the price rises are only starting to bit and once Xmas is out of the way, the cuts will start. Only the very wealthy will be unaffected.

Interesting posts Snapper & RealitBites
The talent I was referring to were those who analysis the tenders, have the experience to understand what’s involved, know where the pitfalls are and can judge where to pitch the price. Them and senior managers/directors are the starting point for a revival. It costs money to keep these teams in place and at what point do you throw the towel in?
Any competitor can win business at the wrong price and lose a fortune. And that’s the worry here if they are getting desperate.

PSK
Great post @ 9.03am
Shockingly disappointing … no wonder there is no RSN. We are still at the “preliminary design” stage, for the next 19 months, of this aircraft. Looks like any decent revenue or profit for RR is years away (probably 3 or 4 years). That’s not going to shift the sp anytime soon. And if RR are to be prudent, it would be mad for them to pay dividends in 2023!
Never mind China reopening or other excuses, there’s a recession on and unfortunately RR has to cut costs steeply and demonstrate they can make decent profits based on their current level of business.
Short term I see the sp dropping back after this initial hysteria. Really disappointed.

The real worry for me is, with no big contract awards, PFC will lose its talented people to competitors. Then they are truly screwed! They won’t wait around indefinitely.

Only a 2p rise so far … hopefully more when US markets open.

Be careful - previous recent Powell speeches have caused a spike up in the S&P one day only to be followed by a sharp drop the next day!

'IF they are that stupid then the chances are that they could do a lot worse than buy RR shares .." - Very true. Anything below £1 is a great buy ... but the competitive side of me wouldn't mind a visit to the 60s to buy a big chunk more ... but that's being super greedy!

AIM shares - Yeah Joules being a good case in point - hope nobody on here bought in recently -
Unless you are a very experienced investor, avoid AIM shares like the plague.

Evening Investorintheknow

Thanks for the response. You have been reading his posts longer that I have so I stand corrected. The ones I've read seemed ok and certainly he doesn't spam the board.
Just hoping we can try and lift the quality of the posts on here, both positive and negative so we can all benefit and make some money.
I hope you got the dog out for his walk today!

Investerintheknow
Not sure what your problem is with Red_Inky?
I find him a realistic poster on here, he's always been straight his average is much higher that the current price and in the past, has point to a realistic downside to the RR sp. I could remind you that JPMorgans were suggesting a price of 60p.
Just because he warns others about that nutter Mike123, RRInvestor, Minvest relentless spamming on here doesn't mean he's a bad guy. If my memory serves me correctly he's also an employee or ex-employee of RR so for me, his posts are welcome.
Lastly IMV he is not CW as his posts were never angry like CW's were and Red_inky has turned positive on the sp now.

Hi Phyl
So the Qataris and other shareholders will most likely have a shareholders agreement with RR on how rr smr Ltd is managed and operated. For example it might say ‘50% of any profits must be paid out as dividends to shareholders’. Etc
I think what JTT is missing is the consolidated accounts part. So if rr SMR makes £1m profit but pays not dividend, RR Holdings plc will still records that profit (its part) in its accounts. If rr SMR say have borrowing of £1b to build the factories, rr holdings has its share of the extra borrowings on its balance sheet.
I doubt very much the other shareholders in rr smr will be interested in getting dividends (as I’ve pointed out many times before that’s years and years away) but when rr smr starts to do well (ie they have an order book for 10 x SMRs) they will be looking for either rr to buy them out, or perhaps rr smr would have a separate stock market listing or perhaps a trade sale of their holding (if allowed).

JTT
1) I think you need to do some research on what ‘consolidated accounts’ are.
2) Most if not all regular trading done by Rr holdings plc will be through their subsidiaries. Did you look at their accounts?
https://www.rolls-royce.com/investors/results-reports-and-presentations/annual-report-2021/annual-report-archive/accounts-and-archive.aspx
‘ Until 2003, Rolls-Royce plc was both the main trading company and the entity listed on the London Stock Exchange. In June 2003, shareholders approved the creation of a new holding company, Rolls-Royce Group plc but Rolls-Royce plc remains the main trading subsidiary of the group.
On 10 February 2011, Rolls-Royce Group announced its intention to put in place a new parent company for the Group - Rolls-Royce Holdings plc.’
3) Have you seen the vast numbers of subsidiaries rr have on pages 183-187? You can even see the accounts for the biggest ones on that link above under ‘Group subsidiary company Reports.
4) There are no worried or issues with Rr have their SMRs in a subsidiary, it’s normal practice.
Please take a look first at the above areas before posting further.

Apologies, last post meant for the Lloyds board

EmeraldCarrots
“With Brnt crude now sub $90 ($87.08) it's good news”
Not sure I agree. It’s dropping because we are entering an 18 month recession, which will be much steeper than is projected. This recession will be particularly tough on the middle classes/landlords. More tax to pay, much higher interest rates, 25%+ increases in real life outgoings (meals, holidays etc). The pain is only just starting and will be 12 months b4 it’s fully experienced. Unlike ppl on lower incomes or benefits, they can make substantial cutbacks quickly (ie one holiday next year instead of three etc) so I think we will see a rapid slow down in Q1.
All good for Lloyds overall as I think we will have higher interest rates (3%+) for at least 5 years.

C1
Thank you