£7 Feb 2025 and why I think so!22 Jul 2023 01:41
Ok chaps, I've posted this numerous times so it's not just a 'punt' or a 'hopeful goal'.
But this is the last time I post it so screen shot it!
To be frank, apart from the RI (Rights Issue, here are my orders):
BUY - 189p - 17/09/20
BUY - 112p - 23/12/20
BUY - 113p - 29/12/20
BUY - 113p - 10/03/21
BUY - 119p - 16/03/21
BUY - 118p - 16/03/21 (yes, two in one day)
BUY - 106p - 30/03/21
BUY - 111p - 06/04/21
BUY - 79p - 10/05/22
BUY - 147p - 13/03/23
BUY - 148p - 16/03/23
(Average is around 93p with the rights issue)
I don't look at SP, I look at MCap - as all of us should. Look at the historic MCap of RR.
Highest MCap in recent history (past 20 years) is $40bln (about £31bln) - 2013.
So what was going on in the company in 2013? 2.95p interim DIV with a final at 4.6p. And they went on into 2014 regardless of the obvious issues (3.09p interim and final of 4.84p).
We all know what issues effected RR in late 2013 early 2014 but I'm taking this as a prime time for RR.
10 years later, and with no DIVS and it's a 13bln MCap.
So how do I translate a £31bln MCap high in 2013 to the current business model?
I don't. As we have no Divs and we've just come out of Covid.
BUT - with 89% of flights from pre covid, SMRs (not in the offering in 2013), AUKUS (not in the offering in 2013), inflation, and a myriad of other things, I'm giving RR a fighting chance to double their MCap from the £30bln (which is rather normal in ten years for any FTSE/S&P 500 company to do such a thing) and ad 10-20% for their golden 10 year R&D they've got over any company competing with them in future tenders, so future contracts should be sewn up (as we've seen recently)
Hence the 70bln Mcap and £7 a share come Feb 2025.
So please, never ask me again.