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Jsimbo that simply can not be right .GE / CFM have 75% of narrow body mkt and exclusive on 737. Because of the entry costs no new company can enter the mkt. a RR / PW. JV would have provided competition not the reverse . Anyway the chance was lost
Fact is that the past management of company has been poor. RR made a massive error not forming a partnership with PW to jointly develop narrow body engine. 75% of all new orders are in this sector. I also think RR are too diversified into aero, marine, nuclear areas. RR can not be taken over because of govt golden share which is also depressing SP.
At he moment RR is in a major aero engine shake up. Many of the older engines like the 700 are being replaced by newer models like the XWB and the 1000. The planes for these engines like the A350 and the 787 are and will be in full production and coming thru in the next few years. I think the drop today is an over reaction IMHO.
We'll Arsenal you picked the wrong person in Jsimbo an aerospace engineer to put your ignorant theories. RR have said that they will not have a narrow body engine until 2025 when Boeing are expected to have a new plane to replace the 757. There is no point in them competing with CFM or PW who dominate that sector. It will be interesting to see if RR take a stake in Sabre like BAE
For a start I have never posted about the V 2500 before. The significance of exiting the program is that RR are out of the narrow body mkt which is 70% of all new sales? PW were and still are in a weak position compared to GE /CFM . IMHO RR should have stayed in the V2500 program and then entered a JV with PW to develop their new engine. The two companies together could have given GE real competition
This share has entered a very exciting phase. We don't know the other interested parties yet but hopefully they may be Russian majors. Mirabaud value the share at between 300-600p a wide spread. With competition this could rise quickly anyway that's what we are all hoping. GLA
Building nicely now
To me this has a long way to go. The NAV is well above the mkt cap . I see this worth at least 250 p and maybe more. This company has finally got its act together
In their report estimated t/o between 300-600p for what it's worth
Net assets £550 m M/C £258m ?. I knows it's Russia but that a big difference . 300 p for me with luck
It is quite unbelievable that the people who are responsible for this disaster should be entitled to a BONUS . Has the world gone mad !!
Hotly tipped in IC today claims its way oversold
The message is obvious this company needs to be sold the other alternative is dilution if the creditors will accept equity which they probably will as they have no option. On the T/O side we are pretty attractive to a buyer as there is a good order book and plenty of experience with govt departments the price anyone would pay with the finances we have is a big question
Why is it everyone thinks you a total wally ?
Totally agree with your post. Todays reaction understandable but if you look closer at situation this company is a good t/o target. The sp is still very low and the order book good