We would love to hear your thoughts about our site and services, please take our survey here.
A contact at Airbus speculated that Boeing may be forced to stop making commercial aircraft! Personally, I can't see that - the customers would not want an effective monopoly, so will (at some point) start supporting Boeing with orders. Same contact said that supply chain problems all over the Airbus manufacturing chain in Europe are massively slowing deliveries of finished planes. FYI.
Obviously, we don't know the terms yet, but this is part of a technology transfer of sorts and Airbus and Rolls may get some form of licensing fee. But I don't think you can have it both ways - ie, you can either charge a license fee or you can build an sell an engine, not both. Don't forget that the Rolls model is like the old Gillette model - it's the spares and service.
Would be nice, but not possible. I imagine a company will be formed in Turkey, and the Turkish government or its agencies will hold a large stake, possible majority. Airbus and Rolls will be the other shareholders. Most of the "turnover" mentioned will relate to parts engineered by Airbus - air-frames, avionics etc. Rolls will be a minority shareholder, and profits will flow through to the consolidated accounts pro rata with its holding in the company. No profits in early years. So, a great piece of business, but not transformative the way your calculations suggest.
Oh dear, touched a nerve. Never ashamed to admit mistakes, but haven't been short this stock. Don't let your head rule your heart. I've no idea what will happen, but am hedged. Let's chat at £3.70 - and if that happens it will won't be because of external factors, but because this is an overstretched and by no means cheap stock.
This stock hasn't had a good pullback since it started to recover, and momentum stocks in all the major markets are stalling. A 15-20% pullback from the recent high wouldn't be out of place in the big picture. Not selling (I can't) but staying hedged.
The weekly chart shows a perfect head and shoulders pattern, with volume confirmation (high on left shoulder, lower on head) . Heavy volume on the right shoulder collapse will make it a text book case. The 1.70 target is just the minimum...it would not be surprising to see the gap in the 150s filled