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Hi Jim,
Unfortunately technology plays a really big role now - for example Robinhood (which says it doesn't charge you to trade) sells your order data to the certain big institutions as you place the order , institutions then are able to make a profit by manipulating the price in their favour as they full fill your order . All done in split seconds by computers etc... The effects of automated trading are especially evident in Crypto trading where there are unbelievable spikes and drops in matters of seconds. All driven by AI.
As I posted previously and people in IT will know. Artificial Intelligence mechanisms built into automated trading and recommendations for trades feed of a number of variables - one of which is Sentiment.
Bots trawl the Web (incl... chat sites) and try to ascertain the Global / market sentiment down to share level (news, social media and chat rooms etc..) . This is then factored into learning and trading algorithms that make decisions to buy or sell. So when people say negative and positive comments don't move the price - think again. The right sentiment in the right place and time can trigger all kinds of movements.
Come on people - "scaremongering? " - You are basically saying we shouldn't sell or buy more because the price is dropping - and all because you think RR is a great British company and its great value. A balanced conversation is needed on pros and cons backed by facts (of which i have seen none).
My comments since yesterday have been can someone please explain the 30% drop in the last 6 months. All we get is - look at airlines, look at cinemas , look at Covid etc... , once we sell ITP all will be good etc.. Recovery of the markets to pre-pandemic levels has happened in some cases exceeded (apart from the companies that raised capital via share options etc... and RR seems to be the worst in the group).
@77 - We are all geniuses in our own mind :-)
I posted yesterday - Civil aviation makes up 49% of their business, we are saying that the fall from 130 in Nov 20, to 128 in Mar 21 to 92 today is because airlines are down (30% decrease)? My point still stands - and for the record what does love or cinemas have to do with it :-)
From their annual report - Rolls-Royce is a global company providing power solutions for customers in civil and
defence aerospace, marine and energy markets.
Civil Aerospace business segment at 49%
Defence Aerospace business segment at 20%
Marine business segment at 20%
Energy business segment at 11%
The challenge is to understand what is going on - which no one seems to be able to explain.
Shares rise and fall but there has to be a reason - 30% drop from its peak in 6 months is not a small matter yet apart from pandemic related rhetoric we have no explanation why. Market is dropping is one thing but when it was rising we didn't see that that reflected properly either.
The problem for me is I am stuck with a large number of shares which keep dropping, I see other opportunities where i can invest so do i take a loss and move on. Unfortunately I have no facts to make that decision. Have been told by chat member's - "Management Board will tell you what you what and when you need to know." So no one really knows whats going on.
A bit confused by the comments on this thread. Share price has fallen considerably, no one can explain why.
Lots of BS statements about oh I get to by more at this low price, what a great opportunity, will be 160 by end of the year etc... but the reality is lots of money lost for both long and short term holders. Unless you are shorting cant see how anyone is making money and please dont tell me that long term holding will pay off - its hasn't for RR to date.
I don't see anything wrong with people complaining, important to recognise the "nonsense" and "losses" associated with this share and share the pain. I am a long term holder and was day trading, major losses on day trading and have closed that down, stuck with the shares though.
Agree with your response hence without understanding and explaining those points n o ones really knows if we should buy more , is this a good price, should I sell etc...
Poor form by RR management to be honest, shareholders should know what's going on.
Thanks Jim,
Am trying to answers the questions but not enough information out there to make a decision. Got killed on my day trading and closed that down but still hold a few regular shares which i see going down and down :-)
So civil aviation makes up 49% of their business, we are saying that the fall from 130 in Nov 20, to 128 in Mar 21 to 94 today is because airlines are down (27% decrease)? My questions still stand.
From their annual report - Rolls-Royce is a global company providing power solutions for customers in civil and
defence aerospace, marine and energy markets.
Civil Aerospace business segment at 49%
Defence Aerospace business segment at 20%
Marine business segment at 20%
Energy business segment at 11%
In my opinion these are the questions that need to be answered, happy to discuss -
1) Why is the share price falling when we are about to open travel and lift restriction in the UK, Europe, USA etc... and air traffic is increasing. a) Pandemic Related - variant etc... i.e Macro economic issues b) Big boys know something we don't i.e bad news coming c) its being kept down for a takeover
2) What impact will the sale of ITP / Bergen have on share price. Assets = Liabilities + Equity, so if we sell 2 bln in assets what does it do to the equation. a) reduces liabilities i.e. reduce debt so net no change b) used to run the company so share price decreases i.e. equity reduction. c) Somehow increases the share price because less debt with less assets somehow means company is better off. Note that 2bln less assets also means less revenue and profit.
Was having a banter here about "nationalisation " yesterday and how this was never going to happen etc.... I stand corrected , looks like its started:
https://www.msn.com/en-gb/money/other/mod-to-take-full-control-of-nuclear-submarine-steel-firm-forgemasters/ar-AALTuTt?ocid=uxbndlbing
I just love how a number of posters here always time it right. Buy on the lows , sell on the highs, re-buy on the low and make a killing.
This share has been a dogs breakfast, unless you bought whrn the rights offering happened you are seriously down that is if you are not day trading which i suspect a large number of people who play the LTH card are.
I cannot tell what is going to happen next, as this share is not behaving rationally and is being massively manipulated, I have been following this closely for over a year.
Moaning about 10% fluctuation?
Mate are you really a long term holder? Do you not remember the price and situation pre-pandemic. Now you have truly lost me. Anyways I have expressed my opinion as to why the price is diving which you obviously dont agree. Happy to hear your thoughts on current situation with some supporting facts and please don't give me the long term holder spiel as we are the ones that got screwed the most.
forum for people investing in the future of RR?
The question is what is the future of RR, the forum is for debate and discussion of opinions. Whether you like them or not is irrelevant, but am happy to listen to your perspective if you have some fact based statements.
When you use words like Nationalise, Government Veto, never be sold etc... I do wonder what era you are living in.
Did you read what I said? RR will be broken up and sold in parts. Not sure why you think that's not possible when pretty much everything else has been sold to foreign companies from national infrastructure, to railways to defence to FMCG.
RR worth 8 Billion - 2 Billion being sold off i.e. 25% of the company, RR is a combination of "subsidiaries" from nuclear to defence to engines etc.... Time to wake up and smell the coffee. I cannot logically come up with any other explanation for the share price to keep nose diving.
Potential for the UK Defence based parts to be kept local but seeing how our government agrees to foreign ownership (Cobham is an example) might not be the case.
Agreed, have been saying this for a while. My opinion is that RR will be broken up and sold in parts. Someone's done the math and is playing this like a fiddle.
Oh and when people say chat sites don't affect the share price, suggest they read up on "Sentiment" and how bots / AI uses that to trade.