Member Info for Skindle

At the risk of repeating yourself ?

Back on the 7th March 2017 as part of the final results the company touched on the issue that had developed with the Trent 1000 engine. Here is the exert -

We have, however, experienced an increased level of activity managing significant in-service engine issues on two engine programmes in 2017. This has principally been due to lower than expected durability of a small number of parts for the Trent 1000 (11% of our total widebody fleet) and the Trent 900 (8% of our total widebody fleet).

These issues have required urgent short-term support including both on-wing and shop visit intervention which has resulted in increased disruption for some of our customers. This has been a dynamic situation. We have continued to progress our understanding of both the technical and operational issues and we are making solid progress with longer-term solutions, largely through re-designing affected parts. These are expected to be fully embodied in the Trent 1000 fleet by 2022. On the Trent 900, an extended life turbine blade is already being rolled-out into the current fleet with further re-designs underway which will be available in 2020. Total charges of £227m (2016: £98m) were recognised in the income statement in relation to the Trent 1000 and Trent 900 accelerated maintenance activity and £170m (2016: £90m) in our cash flow.

These issues can initially be relatively small but as we now know the cost to remedy the Trent 1000 problem has cost the company £2.4b.

Investors need to tread carefully.

Sandbar Asset Management LLP 0.91% 0.11% 7 Aug 2020 (last increase)
ALLIANCE BERNSTEIN LIMITED 0.62% 0.11% 31 Jul 2020 (Last increase)
Total 1.53%

Negative posters/shorters have as much right to state an opinion as investors/bulls. It’s good to read a case for investing and divesting. Personal abuse is unacceptable. I credit RR investors with more intelligence than unpleasant ‘bell end’ remarks.

So that’s somewhere between £2.20 and £4 but it could be £3.50 or £3.85. Are you a broker by any chance ?

What ? Maybe I’m missing something but Opulentia did not make a ‘stupid vaccine statement’

Has reduced its short position slightly from 0.81 per cent to 0.79 per cent.

I am sorry to report that Alliance Bernstein has increased its short position on the 9th July by 0.13 per cent. Their total short position is now 0.51 per cent.

We are all entitled to a change in sentiment but Ricky290 has excelled in his ability to move from posting “strong buy” on the 27th May with the following content -

Can we get to.4 pound by close today ? Thoughts ?

....when the share price was 347 pence.

Today, Just over six weeks later with an improving backdrop and a streamlined business the well informed Ricky290 posts “strong sell” and -

Dont think rolls royce will make it to Christmas massive cash burn . Lost half its revenue . Wont b able to service its debts . Will end up 16 billion of book debt . Assets way short of this number .rights issue will buy some time but ultimately be renationalised. As was the case in the 1970s . Covid wont be going away anytime soon rest of the world drowning in it . A average down could b throwing good money at bad . Think rolls will get broken up eventually .

Bizarre change of opinion. Clearly the Washington Post is more informed than our board of directors.

This poster doesn’t appear to have a good word to say about any of the companies that he/she posts about.

On the 17th March at 21.51 this poster said of RR

“Buy in level around 100p in 1 months time - you will see“

I think the opinion of this poster must not be taken seriously.

Well said Swazers.

Static makes a good point. In the AGM statement on the 7th May Mr East said -

As a Group, we are prepared to endure a prolonged period of uncertainty. Due to the unprecedented reduction in air traffic caused by COVID-19, we are anticipating a significant net cash outflow during the second quarter and it remains too early to guide on the likely outcome for the full year. Meanwhile, our financial position remains robust and our strong liquidity position provides support for our operations.

Here we are less than two months later and rumours have re surfaced about a rights issue. Critically, the company did not categorically refute the suggestion that a rights issue might be on the agenda. What has changed in such a short space of time for the board to be considering this as a possibility ?

aa111, I don’t care what you did today or what you will do on Monday. Have you any useful information about RR or the actions of the board ? If not, don’t post !

I have to admit to feeling misled by the board over the matter of refinancing. Having vehemently denied suggestions by J P Morgan that an equity raise would be required. Here we are, not three months later and the board have been found out quietly trying to raise money. This was not the board reporting to the market about its next move, this was a mole leaking information which the board then hastily had to respond to. The company has been kicking this can down the road for long enough, it is time they just got on with declaring their actual position and putting this issue to bed once and for all. I appreciate the relentless optimism of some posters in this forum but the “400 pence by Wednesday afternoon” nonsense just has to stop. Those that have tried to express a more negative view have been roundly criticised when clearly there is a negative element that needs to be considered. Also, bleating on about how much you have just paid per share for a purchase only leads to those posters looking foolish when the price drops further. I am not interested in what posters pay and how msny they buy, I want to read about company specific information.

DSAM Partners closed their 0.49 per cent short position yesterday. Now only 0.81 per cent of RR shares are short, being held by Sandbar Asset Management LLP.

Sounds like a sound investment strategy ??

I agree entirely Grayling, we are being persuaded out of lockdown when it clearly isn’t safe to do so. I am not interested in flying short haul anywhere currently. I think the RR share price will take a hit upon the release of the half year results in August but I think we will see a gradual recovery thereafter. Your investment at 250 pence is a good entry point. Good luck.

Have today increased their short position slightly from 0.73% to 0.81%. Why ? What do they know that we don’t ? Why did AKO Capital LLP sell their entire 5.21% stake to the highest bidder on the 27th May ?

I am not invested but am impressed by the core debt reduction and the product sales increase over the first eleven weeks of the new trading year. I too am tempted to reinvest but as Manraj said that spread is very large. It’s disappointing that we have to wait until the second half of August for the final results.

Yes, very clear Arsenal17. What I didn’t realise was that you do sell RR shares from time to time to realise a profit which is excellent. My concern was that you were accumulating a large amount of shares in RR at much higher prices that you were then unable to sell without making a serious loss. My point was that by acquiring shares at £9/8/7 a share, the likelihood of the share price returning to these levels in the short term is remote. Good to hear that you are also making profit over at BP so well done. You take some stick from some posters but you do well to stand your ground. Your belief in RR is to be admired.