Member Info for Strike123

I told you fireworks .....

Excellent results! I said positive free cash flow in excess of £500m would be fantastic. These results are without China reopening! Fireworks to start today!

Improved orders, revenue, profit and cash flow in 2022

- Strong new order wins in Civil Aerospace and Defence and a record order book in Power Systems

- Underlying operating profit of £652m, £238m higher than the prior year, with the increase driven by Civil Aerospace and Power Systems

- Free cash flow from continuing operations of £505m, £2.0bn higher than the prior year, led by engine flying hour recovery

- Net debt of £3.3bn, down from £5.2bn at end 2021, due to disposals and improved cash flow

· Focused on delivering significant performance improvement in 2023 and beyond

Psk, you are only looking at the short term share price movement and short term future. If EFH return to pre-pandemic levels then RR can generate £1bn+ positive cash flow, which means after paying off debt interest payments. Moreover RR fixed the interest rate at low levels unlike you and me with our high mortgage payments :-)
£500m debt maturing next year 2024 and another 500m in 2025. With no lockdowns seen anymore with China, £1bn+ cash flow easily achievable. If tomorrow we have 500m+ positive cash flow then I expect fireworks! GL

If RR reports positive cash flow then dividends could be reinstated for 2023 in next March or after and this should help RR motoring this year. Any shortfall in numbers is already priced into SP. Like LLOY results today, may go down a bit but close around 109p and should start to move up. GLA

Fantastic blue finish! Totally unbelievable finish!
Now that results are done and ended in blue, new highs will be reached soon. First target 60p.
Tomorrow RR results!

IMO buybacks are a waste of money. Available share are reduced with buybacks but have not seen any improvement in the share price. Look at Harbour HBR, they wasted millions with buybacks bought at much higher prices and now the share price halved than the price at which buybacks were bought for $300M paid! It could be HBR is an exception!

Paying back to the share holders in dividends will attract more investors , which ultimately helps with improving the share price. All the pension funds and institutional funds like regular dividends and of course us PIs too.

With buybacks, bank has to pay 50p a share whereas paying dividends cost just 3p or 5p a share and there will still be lot of amount left, which bank can use it for investment or for employees pension or something else? I have not bloody seen a convincing argument about buybacks better than dividends till now. If there are any investment bankers here then educate us why my dividend strategy explained above is not good than buybacks? btw, I don't work in Finance sector at all! :-)

When LLOY paid billions in PPI claims and now that it is over so all those billions should add up to the market cap as market is always forward looking? Even with low interest rates LLOY was able to pay billions and now with increased interest rates and with end of PPI claims, don't you think LLOY is very much undervalued at current prices? Almost every company recovered to pre-pandemic share prices but LLOY is still barely touching 50s. There is lot of upside left compared to any other listed company.

EasyJey reported narrow loss in their latest update but it jumped 10% on the results day due to the positive outlook.

As long as RR meets the expectations with positive outlook guidance should see price rise easily. US stocks are already overvalued whereas UK stocks like RR are still undervalued. £1.20 should breach and it could be before the results. US markets jumped at the end of Friday so next week should be good for RR.

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!