RE: New York9 Jul 2025 22:59
Awesome Svend - and that is what polite debate is all about captain - I hope you don't mind me discussing your points in bullets here:
1) "Rolls-Royce had not yet been confirmed as the sole supplier for the UK's emerging SMR programme."
It has sir - and as I suggested prior, the RR SMR Ltd company shareholders (Qatar Investment Authority, Constellation Generation Ltd, BNF Resources and ČEZ) will eat up any gains to balance the books within RR SMR Ltd (currently dire in debt) and then look at eating into profits before anything is relayed to RR PLC as profit on the balance sheet. We all know how Limited companies work 😅.
Net gain for RR PLC = zero until H1 2026 (at the earliest) in my humble opinion.
2) Apart from SMR, the long term graph of the CMD showed narrow body re-entry from RR PLC. Awesome it's happening, but the R&D (although RR has prior infrastructure in narrow ) will be 5-10 years in my humble opinion, so although tax offset will be great for the company, actual narrow body re-entry is at least 5 years off.
Net gain for RR PLC = zero until H1 2030 (at the earliest) in my humble opinion.
3) Possibly most important -as a trusted skipper from 1987, you know better than I do the turbulence of RR, but let's not forget the post Covid crisis. We've gone from Junk stock to a very admirable stock pensions and hedges can now invest in a matter of months (not years), purely from their insurance perspective. Retailers like you and I always knew the growth but in the last twelve months we've had the credit rating upgrading to allow such influx - correct me if I'm wrong, but retail is about 25%? Maybe less?
So now we have dividends back, credit rating almost max, hedges and pensions fully on board, the expectation is high - and I personally feel the balance sheet won't recognise that once the £12 barrier is broken (come December 2025).
AUKUS, core engineering product, future orders simply won't allow for a 100bln+ Mcap unless the balance sheet show's the reason for the increase, and in my humble opinion... it will not. Hence my predicted retraction from a £12 high come Feb Q1 2026 results.
Anyway, enough of me being serious - I've got lithium to mine captain!
Always love and respect to you sir - and it's great we can disagree without having to be William Bligh and Fletcher Christian about it! 😅
2)
Sign In
Follow the stocks
