Member Info for MJK1

In the future SAF will be synthesised from hydrogen from water and CO2 from the air. This will require an abundance of green electricity. This all creates a perfect scenario for RR, a green zero carbon aviation fuel and SMR’s for the zero carbon electricity to produce it.

What’s the trigger for this sudden jump?

£4.53

A350’s are not far off being fully utilised at the moment so how would you increase their operating hours? Agree it could lead to more A350 orders from those airlines that are currently wavering but the production lines are already at full capacity for years into the future so it wouldn’t be a short term benefit.

Not good news for RR if it happens. Trent 1000’s are on about 35% of all 787’s so it would hit RR’s Total Care revenue stream.

Here we go again, what relevance does a past share price of £11 have when there are now over 4 times as many shares in circulation?

I’ve always thought it a good position to be in paying thousands in CGT because it means you’ve pocketed 9 times as much in profit. The more the better.

I do worry how much this share price is supported by people that just don’t understand the relationship between the pre and post rights issue share prices. Unbelievable.

You don’t need all the other analysts price targets. Just multiply the current average by the total number of analysts, subtract 240 and then divide by the number of analysts excluding Berenberg.

This is all very good news and will feed straight onto the bottom line once implemented. Gone are the days when RR made their profit on spares and overhaul. With TotalCare (Power by the Hour), RR pays for spares and overhaul and increasing overhaul intervals has a very powerful effect on margins and profits. If TotalCare margins run at 20%, increasing time on wing by 30% increases margins to 56%, an increase of 280%. I was a designer on the Trent’s and used to pull my hair out at the continual push for insignificant cost reductions. They cost a fortune to implement and often reduced reliability. It’s far more productive to have a slightly more expensive engine if it improves time on wing due to the gearing I’ve highlighted above. Full marks to Tufan.

1.67

The same happened with RR last week. The day before the results it opened at 330 and dropped to 325 by midday. By close it had recovered to the start price of 330 and then on results day it flew to 368 at the peak (and it’s still 365 at the moment). Those that sold midday the day before results must be kicking themselves.

Your point 4 is nonsense, the Ultrafan is nowhere near operational readiness. There’s not even a plane for it yet. It’s also more likely to be scaled down to form the basis of the return to the narrow body market rather than LH.

Wall Street doesn’t open for another hour, the moment it does, they will be looking at a 50 cent rise overnight. Will that drive profit taking or more buying? It’ll be interesting to see.

RYCEY will open about 30 cents up if the share price doesn’t change much over here before 2:30pm. Will this bring more sellers than buyers? I guess there’s a good chance it could but maybe they look even more favourably on the results than we do. As usual, impossible to predict.

What more do people want, underlying operating profit of £1.6B beat guidance from the half year results in August (and unchanged at the CMD) of £1.2B to £1.4B.

335 but hope I’m pleasantly surprised!

Doesn’t look good news on that front if Reuters have got it right.

https://www.reuters.com/business/aerospace-defense/thai-airways-orders-45-boeing-787s-plus-options-sources-2024-02-08/#:~:text=The%20airplanes%20will%20be%20powered,new%20tab%2C%20the%20sources%20said.

It’s not a 10 bagger though is it. For every 10 shares that could be bought at 32p each, you had to already have 3 shares which certainly weren’t bought at 32p!

I’d say that’s a risky strategy at the moment, a few weeks before good results are expected. I’ve considered it but the FOMO has prevented me from going through with it.