Member Info for Paul2566

Missed that unfortunately, but locked in now at 250. I didn't intend to sell but suspect a price drop near the end towards RI cut off. So hoping to take a reasonable proffit now to finance more RR. shares nearer the time. Of course if I'm wrong I'm going to kick myself.

I'm a hold on RR. for the long haul, however if it hits my target of 250p I'd be daft not to take profits. If it dosen't so be it. However even if I clear RR. from the books now I would still look to buy back in before 27th if its at a discount to my sale price.

Thanks

casapinos
What is the latest buy in date to obtain RI options. ?

I must admit to being a little surprised today. I was expecting some SP rise towards the RI with an optimistic estimate of 200p, followed by a moderate dip as many took short term profits, with lows to the cut off point showing SP in the ballpark of 130p. It has risen much faster and earlier than I had anticipated. I'm still a hold but can imagine many will be very tempted to turn a profit. Does anyone have any insight. Do you believe a higher pre RI SP will have any lasting effect on the post RI SP. I appreciate at this point its very much speculation, but always enjoy reading other investor views.

joeybloggz
I agree 100%, diversify through as many sectors as possible. I can't afford to lose everything in one roll of the dice, and investing in different companies through different sectors makes this unlikly in the long term. I think I have demonstrated this nicely to myself. I like banks, but they have taken a huge hit, but thats at least offset in part by my investments in other areas, which has left me a little ahead of the game.
However I try to hold shares in only about 10 different companies and an absolute max of 15, as I find it difficult to keep on top of whats happening in the markets with too many fingers in too many pies.
Its hard not to sell and take losses when many are giving out that advice, and share prices are diving. But I look at why I bought the share in the first instance, and if those reasons hold true so do I. In the case of RR., I liked their business model, and still do, so why would I sell. In fact if I can afford to pick up more sharesat a discount that would seem to be a good move. RR. had issues with some of their engines which seem to now have been resolved, and this cost them. But if anything is manufactured in great numbers there will occasionally be issues, perfection doesn't exist. As long as those issues are a rarity it dosen't overly concern me. Covid19 has been an unusual event which unfortunately could hardle have been better enginerred to impact the RR. business model. Do I believe that means the business model is flawed, no.
There are challenging times ahead for RR. and we can't predict what will happen. In fact only last month three big professional financial institutions were predicting prices of 80p, 270p and 500p per share, thats a big variation from people who are supposed to know what they are doing.
After the RI I'm going to be in by about £7300, which while it will hurt, I can afford to lose. I very rarely invest more than £20000 in any one company, as I take the view that I could lose the lot.
I believe that if invested in a mix of FTSE100 companies over any 10 year period I'm going to beat inflation and make a healthy profit. For me the potential rewards from holding RR. out weigh the risks so I'm an optimistic HOLD.

joeybloggz
On another matter relating to something else you posted.
You state you are a newbie, and I have to say in the current unusual climate I'm also a little lost at sea.
If it helps any, when I got an idea of what was happening, and its impact, I started looking at defensive shares, moving some money into shares like SSE, NG.. Those shares are likly to be as safe as any share can be. I already held ADM, GSK and LGEN, for similar reasons. I have been a holder of HSBA, and LLOY for a while, and obviously despite averaging down have some hefty paper losses at the moment.
Just remember, if you dont neet the cash for something else and can afford to hold, over the long term things tend to average out. I've seen shares tank before, and as long as the company is basically sound they do tend to bounce back over time. However once sold those paper losses becom a reality.
Remember Warren BUFFETT Rule #1 'Never lose money'., and of course Rule #2 'Never forget rule #1'

joeybloggz
Thats a very interesting question. I too am unsure if RI rites can be transferred to another account. Common sense would suggest the RI relates to the holder, not the account.
I run a BED account for trading while I wait for space in my ISA account allowance, and while my funds are currently all invested it would make little difference to me. It may give options for others.
If anyone knows the answer it may help someone.

strategicinvesto, that wasn't much better, sorry, just tried to post too quickly.

Oops I apoligise stratecicinvesto, typo on your nickname. A genuine mistake, but I apologise and hope you don't take offense

strategicincesto
That made me smile, I think thats the nicest way anyone has ever confirmed I'm an idiot....

BBang
Agreed, however I don't see shareholders fighting this. I think if anything RR. should have made this decision earlier.

strategicinvesto
Its anyones guess, I think it may continue to rise, but as some take profits it may well dipp again, and will I would suggest drop a little more to the deadline, but I doubt it will dip below £1. But of course I will most likly be wrong, these are very strange times, which will prove me an idiot.

mdmckea
On another note, a while back I remember seeing some news on RR. dabbling in a single seater electric plane, it was meant to be flown earlier this year. Not a great deal of further information on this but it appears to have now been tested. This is an exciting area of potential development. Slow and steady wins the race.

samb69
I agree its just smoke in the wind. I think there will be a few who are gambling on some pre RI price rises who will buy in and exit at some pre-determined profit margin prior to the RI. Some like me already in the game will be holding paper losses and will buy to average down. Its anyones guess.

mdmckea
I am certainy no expert nor would post myself as such but I have done ok over the last 15 years or so making steady headway and learning to play the game as I go, but every day is still a school day.
I 'guessed' at this wide margin, sentiment will play a big part and some early players cashing in a profit may influence prices, as will further world events and company news between now and then.
Its a volatile market and the prices I suggested are what I view as the short term absolute worst case scenario and some wishful thinking on a best case scenario. 62p sits somewhere near the middle.
But I am just musing, like I posted it dosen't really matter in my case if its 40p, I have confidence that over the next 10 years I will see an inflation beating profit, and hopefully a reasonable one.

Hope it works out for you, I wouldn't wish losses on anyone.
If you are new to trading my advicewould be don't go looking for a quick buck, sometimes you will do ok but to make money on day trading often requires big capital, and maximising small margins. I don't play at shorting, I don't have the knowledge or skills required.
My strategy is to buy what I understand at a reasonable price and expect to hold for a minimum horizon of 5 years, but mostly 10 years and longer.
This isn't a nrew idea, and I am a fan of the Warren BUFFETT school of thought, after all he has been in the game for a while and I think most would agree he seems to play the game very well indeed.

Curious if anyone has thoughts on the post RI share price.
I'm thinking anywhere between 55.8p and 72p.
I appreciate it dosen't really matter for my plan, but must admit to being curious about the thoughts of others.

Before COVID 19 I had a small interest in RR.
886 shares at an average of £3.42 with a total investment of £3063.11, and the world look rosy for a while.
A few months later and I was down by quite a bit, but this was always a 10 year horizon hold for me so not unduly worried.
Next the recent rites issue gave me further food for thought.
I had limited room for manouever in my ISA, and my BED account already has all current funds committed to long term plans.
I decided to buy some more shares yesterday in my ISA with the little free cash available.
Picked up a further 1464 shares at £1.1793 bringing my total investment to £4810.76 for 2350 RR. shares, and leaving me enough cash to purchase the full allocation of RI rights.
I fully intend to add a further 7833 shares at the proposed 32p.
I believe this isn't without its problems but I see RR. as having a good moat, and believe over 10 years and beyond RR. is still a good buy at these prices, with short term paper losses being of little consequence.
I believed RR. to be a sound company when I initially invested, and still view them as a good long term investment.
For those already invested my advice would be, if you have a 10 year plus horizon its a no brainer, use the full RI to average down current losses for greater gains. I believe once air travel increases as it surely must, the profits will begin to return. This isn't likly to happen quickly but it will happen.