The latest Investing Matters Podcast episode with London Stock Exchange Group's Chris Mayo has just been released. Listen here.
The taxpayer gets no say in this. It will be a Govt decision and that will be made on the strategic position of RR in:
defence - aero and marine
nuclear - submarines and the plans to use that technology in 'modular' civil power stations
The company will not be allowed to fail or be sold. That does not mean it is going to have a good share price for some time, just that it will not go bust.
Yes i will offer one.
Post-Covid the way the government addresses social care policy will change a lot. Taking a central role in the logistics management for the nation's tens of thousands of care homes with their huge multiplicity of ownership. Adding some top end procurement at the front end of that will save a fortune and give a (closer to) uniform quality of service.
The NHS has a rather limited version of this in warehousing and distribution but that serves a relatively small number of (much larger) hospital organisations and still leaves the hospitals doing much of their own procurement.....of questionable quality.
It will take both scale and top of the line technology .....but the benefits to the purchaser (HMG/taxpayers) as well as the patients will be massive.
The Auto sector is doing well this morning on the back of the Tesla results......hard evidence that people are still building cars. I expect the aircraft makers will be a considerably longer haul. A slow and steady recovery here.
I agree that things seem to be going' very well' but I am not going with your idea suggestion of a dot com bubble in this space.
I think the comparison of Tesla with a type of cat food delivery company in the bubble time is not valid. While i am sure other will com e along with good e-vehicles Tesla has a start that comes from a very different place (and mind set) from Mercedes or Ford etc. There is a mind set change here that consumers are buying into because of the greening of their thinking and the legislation that will drive it........perhaps Tesla will win the prize?
I think they are way beyond being an 'interesting' player in this field and are leaving conventional car makers behind .
Very interesting times ahead........by no means certain this is the winner but where else are the credible alternatives today?
A very interesting game ahead for this company i think.
Are you familiar with the term 'mega factory'? Tesla has.........
one working in USA
one pretty much compete in China
one under construction near Berlin
Your point about batteries has some validity as Tesla is leading edge in development and deployment of battery power systems in domestic and commercial/industrial applications.
So..... one company at leading edge in two critical future technologies in a global lower carbon environment.
I guess you live in Derby and i can understand a wish to see maximum damage in difficult circumstances.
i think cost minimisation will drive the decision on inchinnan and that new plant cost a small fortune.
for clarity i have never worked for RR but have held shares for 15 years.........so am a lot less than pleased with how things are.
but have some faith .....
We will see how things play out
Not sure they will close Inchinnan as it is a not far from new facility.... where they spent a lot of cash. A lot of small and medium engine maintenance work is done there (as well as component manufacture) so a massive drop in activity is understandable at this time. Some of that will come back....albeit 12,24 and 36 months from now.
I fear RR will be a long and slow climb up the 'twin peaks' of the 787 and the volume drop.
yes....and to get elected he has to make a crashing reduction in the now 36 million now newly unemployed.
a chunk of which will come from shovel ready construction work....
that will employ those people
who will be using kit hired from AHT.
In economic growth and development terms 'low hanging fruit'
This is basically a USA market-driven stock. Like him or loath him ,Trump is going to push USA economic recovery hard and fast to get himself back in the White house in November. AHT will go up on that tide which is rising faster than the UK/Europe recovery. A good underlying case for continued share price growth here.