RE: Moneyweek article9 Jun 2022 12:03
It was always going to take years to Fix Rolls Royce, I think 2-3 years from now.
The key line is ... " Virtually all of the company's current issues are a direct result of the coronavirus pandemic. "
With a resurgent Russia and China massive spending on Air and Naval forces the defence business is only going to grow.
With overheads dropped by 2.4b in the aviation division -- a £266k drop per headcount loss vs 9000.
No need to design new engines and less new engine sales, the Trent problems fixed, flights coming back, Aviation is going make much higher profits than before.
Then there is power systems which has a clear strategic path to be become gigantic and main stream .
I am sorry the guy is wrong, if want unit concrete earning and cash flow figures you are too late, you missed the boat to make a killing.
As Warren Buffett said ... "buy on bad news sell on good"..
I have taken the view you therefore need to buy now before the good news takes effect and am sitting on over 250k of shares so i put mu money where my mouth it.
Rolls Royce will be over £2 maybe back up to £3 in 3 years time.