Member Info for MJK1

Is it not due to the news that we may be seeing the beginning of the end of Russias invasion of Ukraine? It was announced Russia were pulling back to concentrate on the eastern Donetsk region just after 4pm on Friday just as the share price took off.

Prior to Russias invasion on 24th February, the share price was sitting around 120p so we’re still not back up to that level yet.

no surprises here been going up to 95/96 and back down to 90p for weeks , this will finish around 92

1.30 next week . News coming out , got all the top ups I could do $$$

You’ve got to laugh, two posts made by the same person 4 hours apart today. I like to come here for informed opinion, unfortunately too much rubbish like this gets posted.

MrJimV, it was VW who bought Rolls-Royce and Bentley from Vickers but then found out they hadn’t acquired the Rolls-Royce name as it was still owned by Rolls-Royce plc. Rolls-Royce plc then sold the name to BMW for £40 million who had to then build a new factory to produce Rolls-Royce cars.

Copper1, Red Inky is right there has been a rights issue since you traded your shares at over £10. There are now 4.33 times more shares in circulation so for the same market capitalisation your £10 shares would now trade at £2.31.

They say omicron infections are doubling every 2 days, at that rate assuming about 10000 have it already (it’s probably more) we’ll all have had it by early January. This could all be over quicker than the government, scientists and markets think.

They don’t, the A321neo has two engine choices – CFM International’s LEAP-1A and Pratt & Whitney’s PurePower PW1100G-JM geared turbofan. RR completely got out of this market when their share in V2500 was sold to P&W.

This is very good news, short haul as well so plenty of cycles (take offs/landings) for which RR will be paid handsomely through their Total Care agreements for 4 engines per aircraft.

Thanks Matwalk, so good to hear some sense on here. I’m no anti-vaxxer, far from it, for those Covid would kill it is a life saver and it’s broken the link between infection and serious illness or death. However everyone doesn’t need it. I’ve looked after my immune system, haven’t taken antibiotics and other medicines as if they’re sweets, have kept fit and not put on weight. I caught Covid in January this year and suffered a slight aching for a couple of days and a cough for a week. There is absolutely no point in me taking the vaccine. They should do an antibody test before giving the jab similar to what they do for the TB jab.

CW, your view is too UKcentric, I agree long haul from UK is helpful for RR but EU on lockdown is not as we also need the long haul flights from the EU. We need all countries showing a high level of vaccination and and lower levels of Covid and then the SP should fly.

Fisherking, flights within Europe may be short haul and little to do with RR but how about between Europe and the rest of the world? RR needs Europe up and running.

I agree about the streamlining but RR’s bread and butter is long haul and for that electric flight is currently pure fantasy. I think the sustainable way forward is jet engines running on synthetic fuels made from renewable energy sources. RR is well placed to benefit from this as its building on their current technology.

Picked straight from a quick search:-

Example of a Rights Issue

Let’s say an investor owns 100 shares of Arcelor Mittal and the shares are trading at $10 each. The company announces a rights issue in the ratio of 2 for 5, i.e., each investor holding 5 shares will be eligible to buy 2 new shares. The company announces a discounted price of, for example, $6 per share. It means that for every 5 shares (at $10 each) held by an existing shareholder, the company will offer 2 shares at a discounted price of $6.

Investor’s Portfolio Value (before rights issue) = 100 shares x $10 = $ 1,000
Number of right shares to be received = (100 x 2/5) = 40
Price paid to buy rights shares = 40 shares x $6 = $ 240
Total number of shares after exercising rights issue = 100 + 40 = 140
Revised Value of the portfolio after exercising rights issue = $ 1,000 + $240 = $1,240
Should be price per share post-rights issue = $1,240 / 140 = $8.86

Jonny, you’re not understanding my equation. For every 3 shares held you got 10. So to find the average of these, it’s 3 times what ever old price you’re comparing with added to 10 times £0.32 divided by the new total of 13 to give the average of new and old shares. As I said above on the post rights morning, the SP dropped from £2.18 at the previous close to £0.75. This is because [(3 x £2.18) + (10 x £0.32) / 13 = £0.75.

I’m talking about a theoretical pre to post rights share price comparison and for that the £2.059 billion does add to the market cap. The only instant this would have happened in reality was when the shares opened post rights. The SP dropped from £2.18 to 0.75p. Market cap went from £2.18 x 1,930,995,313 = £4.21 billion to £0.75 x 8,367646356 = £6.28 billion ie a difference of £2.07 billion, as raised by the rights issue.

Jonny Boy, I’ve no idea what your talking about, 10/3=3.333333 but what’s that got to do with anything we’re talking about here? I’ve outlined the calculation to get from the pre to post rights price and it involves calculating an average.

No trader, your understanding of rights issues is wrong. RR received 32p per rights share. If someone didn’t take up the rights it didn’t mean whoever bought them got them for 32p because the original rights owner got compensated for the fact their existing shares fell from £2.18 to £0.75 when the share price went post rights.
With regards to market cap, the original 1,930,995,313 shares at £13 put it at £25.103 billion. The rights added 6,436,651,043 (10 for 3) shares at 32p which added £2.059 billion to the RR market cap. So the new share price equivalent to the £13 pre rights price became £27.163 billion / 8,367,646,356 shares = £3.25 as I said earlier with the simpler calculation of averaging 3 shares at £13 and 10 shares at 32p.

Johnny, I’m quite calm but please just take a minute to go through my numbers, £13 pre equates to £3.25 post going by the calculation I’ve outlined.

It’s not a matter of opinion, it’s a matter of fact and the equation I’ve outlined is how you calculate a post rights price from a pre rights price. It is important that it’s done right otherwise it’s not possible to datum the current share price with historical data and you get people coming on here asking when the share price will be back to £10!

It’s not a case of dividing by any number, 3.33, 4.33 or whatever. You have to find the average of 3 shares at the pre rights price you’re interested in and 10 shares at 32p. So for £13, it’s [(3 x 13) + (10 x £0.32)] / 13 = £3.25

I must be in some sort of parallel universe then!!!!