Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
Even JPM report, Lehman News, Seeking Alpha didn't talk about supply chain issues dampening EFH. They said RR is not making revenue from narrow body aircrafts as they sold that business 12yrs ago and Tufan is now expected to get back into that business. Any hints on that in the update next week will explode the SP!
Red, you are totally getting confused. You think that supply chain issues are dampening engine flying hours? No where it has been said that way not even RR. You are just making it up. 2026? You are totally clueless you clown. Without China reopening, engine hours have been subdued last year and now with China reopening thos flying hours will increase their year and that is why market is valuing at 110p instead of dumbsters like you calling for 90p and 60p. Overall air travel numbers are already pre pandemic levels as per the updates from travel stocks, which means it will add to engine flying hours for RR. You didn't get this and talking nonsense.
Red, care to explain your 'knowledge' to prove you are statement is not the stupid one?
RR makes more than quarter of it's revenue from engine flying hours and this stood at 65% of 2019 levels as per November update and China did not open at that time so how the fck supply chain issues did not impact then? Now with China fully reopened those flying hours will be even higher and close to pre pandemic levels. Processing new orders could hit delays due to supply chain issues but these are not next day delivery orders!
How is engine flying hours relates to supply chain issues when China fully reopened?
Also GE gave a positive outlook for civil aviation for this year and is expecting 'significant' cash flow from civil aviation business. I expect the same for RR and some of the analysts expect the same too and so is the price target of 136p. These are fully year results for 2022 and market priced in 2022 trading. It is this year outlook that is promising with China reopening and is the reason why RR bounced up quickly to current price levels. £1.50 by Summer is my target.
I'm feeling tired of constant negative opinions aired here. I will need to filter some...
Momentum started with RR share price.
118p before the results. With CPI numbers out and looking goodz there are no headwinds before RR results. Path is clear for 120p breach. Adding more at these levels too.
Big orders and a business that can sustain for multi years and capable of generating positive cash flow, any investor want to be in a FTSE100 stock like RR and is the reason why it is one of the top 10 stocks that investors hold! Not long for higher highs GLA
Yep down by 0 4% expected was 10.3 but it is down to 10.1. Like I said if Sunak wants to halve the inflation then reach month it has to go down by 0.5% and today's figure is promising.
These figures should help market concerns but media says market is opening lower today did to US CPI but with UK figures promising I think market will rally today and all this should help RR price. Don't forget the massive Air India deal!
Today US CPI figures are coming out so the market is waiting for those figures to decide which way to take the market.
Tomorrow it is UK CPI figures.
Agazz, JP Morgan is 400billion company but it is the weed in that company that is making ludicrous forecasts.
Like MarbleMadness shared, that analyst is ranked low and needs to be sacked!
He said RR cannot enter narrow body aircraft engine sector as the main players are already in partnership with GE and PW. He said although RR is ambitious with the plans to do a partnership but the only partnership RR can do is China or Russia, which are not a choice due to political situation. If that is the case then why the hell Apple, Tesla, Ford all have manufacturing in China?
RR will enter narrow body aircraft sector and David Perry will get burnt badly. Tufan will and can partner up even with a Chinese company and RR will have another big revenue opening up soon. It will come at some point. GLA
LGI was touted to buy ITV in the past but they have bought stake in Vodafone.
I wonder if the 2.5% drop is due to that?
It could be also be that US and UK CPI figures are due on Tue/Wed so probably some are waiting on sidelines to see those figures. I'm going to add close of bell tomorrow depending on how US markets react to CPI figures.
UK CPI should be down too but how much they will be down is to be seen.
Below 10% would be fantastic and if it is then markets will rally including ITV...
commentary I read is that UK CPI for Jan could be down but at 10.3% compared to 10.5% in December.
But Sunak in his new year speech said that he would halve the inflation in 2023, which means every month inflation should be down by 0.5% atleast considering the rates are still where they are.
Below 10% for Jan would be good and that will really bring on a good rally for UK stocks helping RR results on Feb 23rd.
US CPI figures are also a key for the markets and hopefully it is down and not up otherwise blood bath in the US markets if it is up.
US CPI figures on Tuesday 2.30pm UK time ?
US is on Tuesday
UK is on Wednesday
They will be down as oil price was down in January but how much down is what matters.
But atleast if it is down then again a rally begins helping RR and IAG results.
UK CPI below 10 would be fantastic.
https://cleantechnica.com/2023/02/10/tesla-stock-could-hit-1500-a-share-by-2030-says-ron-baron/
Imagine if Musk bid for RR for electric aviation!
May be someone should Tweet Musk about RRs electric aviation!
Could Hit $1,500 A Share By 2030, Says Ron Baron!
https://cleantechnica.com/2023/02/10/tesla-stock-could-hit-1500-a-share-by-2030-says-ron-baron/
I believe it could atleast touch $500 when the market rallies. Bulls vs Bears fight began again! If the retailers keep buying all the available free float then shorts will not have much left to cover and price will explode!
SprintRS, RR was at £3.36 pre-pandemic without SMRs, SAF engines, electric aviation and now we have all that in place so the valuation of RR should be much higher than pre-pandemic levels. Seeking Alpha analyst has valued RR at £2.36 if RR can maintain £1bn positive cash flow like in the pre-pandemic days. This year travel should recover to 2019 levels and higher so the positive cash flow of £750m - £1bn is achievable with China as well fully open for travel.
Results should be good and Tufan will have now learnt that he needs to present the numbers as good as possible. He will make positive announcements that market will like it even if it is workforce reduction. Any announcement on RR entering narrow body short haul aircrafts will be a big news that will be taken positively by the market. Highlighting Poland's SMR contract, US Army F52s and other big orders like Air India are big positives that market will like it. Considering all the above RR definitely is very much undervalued at the current price.
Important thing is that all these engine orders add to the engine flying hours eventually. In the last update RR reported that the business returned to 65% of 2019 levels and this year there is nothing stopping to reach 80% of 2019 levels or even higher. With rates fixed at 2019 levels and overall business improving the outlook is much better for RR. Pre pandemic the price was £3.36 so current price is way too undervalued. Even with price at £1.50, it is still more than 50% less than pre-pandemic price.
I thought today's news about UK avoiding recession narrowly is a good news as the market was worried about recession being worse in UK than any other country. Of course recession forecast is for 2023 and the figures we received today are for last year but IMF will be proven wrong for 2023 too.
The only concern with today's figure is that whether rates would come down or stay at current levels for longer. If inflation figures come down for January, which I think it will then probably BoE may hike rate by 0.25% next month and signal that it is the end and Mrs Mann from MPC should as well calm down with her ask about higher rates.
Poland/Industria selecting RR SMR is a huge win. I expect orders to pour in from other countries.
US Army orders, Air India orders will all help build positive sentiment among the investors.
Remember it is all about the sentiment. To help with positive sentiment, we are entering travel season and that is a big boost for travel stocks like IAG and EZJ and helps RR too!
In the results, once we have positive guidance on the engine flying hours and new projects then that positive outlook will tremendously help with boosting the price to £1.50. GLA
We should have been at £1.20 if Tufan had not commented that way. Just need to be glad that such comments were not made on the results day! He now has learnt what happened to market cap because of his comments. I guess market will now take the results positively. He just need to comment positively on results day. I'm anticipating 118p on or day before the results day provided no other wider macro issues. GLA