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You betray your ignorance with the belief that companies and shares prices are the same thing. There probably is a Stock Market for Dummies book you could profitably read. I know this company very well and my target is a technical one.
"Deramping" is another sign of your inexperience if you think that anything posted here will affect stock prices - I would guess that the total holdings of people on this board amount to less than 1% of daily volume. As you seem to be a new poster, I'm guessing you are a recent buyer - I hope that works out for you over the long term
Chaps,
I’ve been short of this stock for about a month now, and I don’t think I’ve ever been as short on a single stock. For what it’s worth, here’s my rationale:
Recovery in flying hours: I suppose there might be some remote tribes somewhere in the world who haven’t heard of this, but everyone else has – it’s priced in, (and any way it certainly won’t show up in Rolls cash flow this half).
The turnaround: these take a lot of time, and it ‘s way too early to expect any positive impact from whatever the new guy decides to do (the easy bits of cost saving were done by the last guy)
New orders: irrelevant for several years. If you place an order with Boeing or Airbus today, expect delivery in 6-7 years. The whole industry is racked with supply chain issues.
SMRs: a fantasy but nothing more so far, and no chance if any financial impact this decade.
Valuation: there is a lot of hope built into this share price, and the company needs to deliver quickly to justify the current valuation – I don’t thinj it can. Low-priced does not mean cheap
Please note I am not passing an opinion as to whether Rolls is a good company or not. I don’t know, but to me it’s certainly not a good investment.
I’d expected to wait until the August results to cash in on this, but I fear the dam is about to break on this one soon. I’m looking for around 1.25, but lower would not surprise me.
If I’m wrong, I’ll take the hit and move on, and won’t feel any the less of a man/woman/child/cat for doing so. I’ve invested money, not my ego.
Good luck to all
So much already baked into this hare price. When the gap on the chart closes at £1.10, it will still be on a PER of 14x FY24 eps. For this share to advance, we need to see progress (not just talk) on the restructuring of the whole company. (it goes without saying the whole nuclear thing is pie in the sky for the foreseeable future).
This company exists for one purpose only - not to grow, or reward shareholders but to pay down (very slowly) its debt. There is absolutely no investment case for it. The long term chart is suggesting a breakdown and fall of 20-25% very soon.