Member Info for Grezzz

I'm also wondering if ***ty Truss's comments with LK on BBC are pointing toward an announcement regarding SMR go-ahead with RR?

"Speaking on BBC One's Sunday with Laura Kuenssberg, Foreign Secretary Ms Truss said action on energy bills would be "vital" for people and the economy.

She added that further support would need to go "hand in hand" with a plan to boost domestic energy supplies, arguing the UK had become too dependent on international energy prices".

If she follows through on this and raises or abandons motorway speed limits I might actually vote for the first time in many decades..

I think it's just recession fears, with some companies and sectors obviously more likely to suffer than others. Spooked across the board, so keeping some powder dry for when we see some evidence of confidence returning.

Tempting, but we're not short of 'bargains' just now. Thoughts?

What we need (as I mentioned on the RR board), is to get Jake Freeman on our case. He certainly has some pocket money to play with!:

https://www.ft.com/content/b83144bd-830e-4e1d-a9a1-a1ee1ba61dab

Never mind Bed Bath and Beyond, invest your $110m in RR.L or RYCEY, teach the board how to handle the debt and Fx exposure and make some real money...

https://www.ft.com/content/b83144bd-830e-4e1d-a9a1-a1ee1ba61dab

What I gather from this anecdote is that Thomas Edison was almost certainly well insured and swimming in capital, when the setback occurred. Under those circumstances, any other course of action would appear as uncharacteristic..

FWIW, I opened my position in BP a day or two after Deepwater Horizon. I was living in Birmingham AL at the the time and a week or two after that we drove down to the Gulf, to have a looksee. Couldn't find a drop of oil on any of the beaches, but the smell was off the scale. Been topping-up, now and then, ever since.

@Mattyboy

Thanks for that!. I've read reams over the past week, but I guess that piece of information didn't stick. Cheers - and GLA!

@Mattyboy

Tenner? Sorry mate, not sure what you mean?

Agree we won't see any institutional investors until there is effectively 'money in the bank', but another question I ponder is as to how any compensation will be distributed? Presumably Nanoco will want to retain the majority, if not all of any windfall for investment and debt reduction. Has anyone, with greater insight into the history of the company than me, imagined a realistic model of the situation, say twelve months hence?

^ Thanks for that - very helpful!

LiquidSky,

I was in a tearing hurry earlier and didn't have time to read the link you posted (nor check-read my reply for coherency), but I have now.
So as we all know, the point of hedging any trade is to mitigate huge exposure and effectively lock-in a margin should parameters change during the period of market exposure.
There was an ongoing joke on my desk at Berisford, the punchline of which was often used to excuse some blunder or other. The boss used to require whomever was going to the snack shop next to our building in Mark Lane, to pick-up for him any number of obscure items, not necessarily always in stock at a City mini-mart. So one day, my mate comes back with all our orders of crisps, sausage rolls, Mars bars etc. and hands the boss a pork pie. The guvnor is immediately animated and incandescent with rage. "What the **** do you call this you ****, I asked you to get me a ham and Swiss sandwich with Dijon mustard and you bring me a pork pie? What the ****?
"Calm down, no sandwiches left ---- it's a hedge".... We were literally ROTFFL (I guess you had to be there) - but my point is to illustrate that if you are setting out to hedge a deal, you don't take a huge position over a large spread of time which is inflexible and can't easily be adjusted - because that just isn't a hedge, any more than a pork pie is a hedge for a poncy ham sandwich. So I'm still left pondering how such a monumental exposure was left to fester at RR.

Thanks for that, LiquidSky!

However, my point really boils down to the point that the hedging catastrophe smacks of negligence. Stating the obvious, but because currency movements can be so violent and unpredictable, they need constant appraisal and adjustment. With a company the size of RR, one would like to think they have a dedicated Fx department whose sole job is to tailor their exposure according to the ongoing business, good or bad.

The more I think about it, that currency hedging loss doesn't sound right to me. My first job in the City was with one of the biggest commodity trading companies of the day, Berisford, for those with a long memory. From day one it was drummed into us junior traders to cover our currency exposure the moment a contract was agreed. This was of course before the Euro was established so we had myriad earning streams in local currencies. We got away with a load of shizzle back then, but failing to cover the currency risk on a deal was a serious no-no. Now obviously RR's business is miles away from commodity trading, but it beggars belief that they could make such a gross error or currency exposure. Does anyone, having read the accounts, have a clearer picture and explanation?

Well I think it was well worth a few quid to be finally rid of that annoying, carpet-bombing, semi-literate ****. Let's just hope that he's a man of his word. It's just a shame all of his apologists haven't followed suit. For long-term investors, it's just irritating to have to wade through all the garbage in order to gain the insight of serious people who have taken the time to do some research. Next time (and there will be a next time) an idiot 'mosquito' shows up, we should all reflect on how much more useful this place is without the constant noise.
Good riddance Mr Hunt234

Yes, bye bye Mike234 - lucky indeed!

Badly written, rambling drivel. What 'recent crash of a large jet in China'? If he's referring to the loss of a 737 back in March, what has that to do with RR? He even contradicts himself in places. I also question his maths relating to investor return since 2013.
2/10 - Must try harder. Work on your English skills.

Papucel,

Your link is behind a paywall for me. Would you summarise it please?

Robina,

Indeed, after 30+ years of investing, I've rarely felt so perplexed with market sentiment and movements. One explanation maybe the entrance to equities of a new demographic of investors together with institutional investors trading with a revised set of metrics. Whatever it is, it's going to take me a while to adjust..

Just seems to defy logic to me. It's as if the City knows something we don't...