RE: RR sp10 Sep 2020 10:19
Maybe, maybe not, the share price is low cause the market sentiment is low, volume trading is low
alot of uncetainty around travel and flying.
The rights issue from my understanding of the accounting is not potentially needed for at least 12 months when revolving loan facility needs to be renogitated, the problem we are seeing is there is a current lack of interest in RR in the crisis we see, there turnover is still strong. Prefferential bank bond to underwrite the need of keeping a strong cash flow is being investigated, and a rights issue, is not needed at this moment, as the revolving credit facility is in check.
Problems with the downgrades by Finch does not help the revolving credit arrangements, but the BoE has stated strongly they are introducing bonds to underwite cash flow issues for corporations
what is needed is faith in the aviation industry and investor sentiment to return. The matket pychology around aviation is so reactive, its so fascinating to watch, any signs of setbacks or delays spooks the investors hence a gradual decrease from 272-210 in last 14 days.
There are people here on this forum talking of low share price drops , this is always a possibility as RR is in a real state of VOLATILITY governed by the market in aviation hence the reason that the low SP is down to fear and low market sentiment.
Many factors can swing this, I am optimistic in the sense that if aviation industry does collapse , then we are really looking at a Brave New World of low travel, being confined to countries, freedom of movement restricted...... And generally that brings in a worse economic depression impacting the rest of the Equity markets around the world
What we need as RR investors is to see in the next 3-6 months a agreed worldwide solution to making avaiation travel easy with the pandemic being kept in check. This uncrrtainty has spooked investors
RR H2 report outlook for the future is a worst case scenario, if market sentiment does not return to aviation.
Either way fingers crossed, and investors who are investing at this moment know that it is Volatile, degrees of uncertainty etc so.can expect further drops or rises.