Member Info for thegame316

This could be the start of an upturn. The current price is due to uncertainty about finances. If £2.5bn is raised along with the current £6bn liquidity and upcoming £2b disposal then that more than covers the expected £2bn cash outflow for the second half of the year.
The sp has fallen rapidly over the last few weeks so can easily rise just as rapidly. Monday will be the litmus test. If the week starts with a blue day then it will be happy days

the current sp is based on sentiment not fundamentals. If you look at the the 2019 annual report then just from Defence the operating profit was over £400m. This part of the business has not been affected by covid so this bit alone would give and sp of around £2. Power systems is down slightly but that is still profitable and as for civil aerospace then that is recovering albeit slowly. There is no chance of going back to the situation in april/may when over 90% down in flights. The current market is only around 30-40% down. This is still massive but does not justify the current price. RR get paid for each hour the planes are in the air so even a few hours a day utilization is still bringing in revenue.
Add to this the cost savings that have been put into place and the expected disposals then RR have got the means to survive the pandemic. The same thing happened during 2008 financial crisis. Back then people were talking about how the economy was finished and it was going to be like that for years but by 2010 the picture was different.
This pandemic will pass. A vaccine will eventually be found. If there is one thing that history has shown its that mankind always finds a way out.

When the sp is falling then everyone will come on here posting its time to get out. But if you look at it logically selling now is foolish. The sp is at a multi year low. Those that say it has further to go are right to a certain extent but to go as far as saying this will go under 150p is crazy.
According to the 2019 annual report 90% of the operating profit and 50% of the revenue came from Power systems and Defence and these sectors are still holding up. Civil aerospace revenue will be about 50% down over the next 12 months but it will still be in the billions.
Apart from one every other broker has got a target sp which is multiples of the current price. If the situation was as bad as what some posters here make out then the professionals would also be reflecting this in their target price.
Fact is RR dont just supply engines for uk planes. They are a world wide company that supply engines to airlines everywhere including the middle east, USA and Asia. Even if there is a 2nd lockdown in the uk for 2 weeks it will not have a significant impact on RR.
For example one of their biggest customers, Singapore Airlines is currently operating at 70%. Also the regional market which RR also has a presence in via the Embraer ERJ jets are also doing quite well so its not all doom and gloom.

Summary is RR have stated in the last half year report that in the base case scenario of flights being at 70% of 2019 levels in 2021 then no equity raise will be needed and at current trajectory 70% is easily achievable by 2021

Having served for many years as the workhorse of intercontinental passenger jet operations for the world’s airlines, the Boeing 777-300ER widebody twin has been heavily impacted by the collapse in demand for international travel due to the Coronavirus pandemic.

While the aircraft offers the largest belly cargo capacity among twinjets, many operators are turning to smaller, latest-generation Airbus A350s and 787s, as their preferred choice for longhaul services during the recovery phase. Cirium classifies 63% of the global 777-300ER fleet as having in-service status – compared with 75% of 787s and 78% of A350s – although the type remains the most populous with more than 800 active.
As of 28th July, daily tracked flights for the 777-300ER were 56% down compared with the 364th day prior, on a seven-day rolling average basis. Flight hours, meanwhile, were down more than 62%.

Emirates maintains the largest fleet of 777-300ERs with 119 in service and four in storage, followed with Cathay Pacific (15 and 35) and Qatar Airways (47 and one).

Airlines are likely to pass by the end of this week the milestone of collectively holding fewer than one third of their passenger jets in storage as the gradual recovery in global flight operations continues.

Behind this topline figure, narrrowbodies were clearly most in demand as the mainstay of domestic and intra-regional trunk routes, with only 29% of the global fleet remaining inactive. Meanwhile 37% of regional jets and 43% of widebodies are yet to be returned to duty.

As of 10th August Cirium classified a total of 8,750 widebodies, narrowbodies and regional jets as having in-storage status, while nearly 17,500 were in service. More than two thirds of the global fleet has been in storage since late March.

By mid-April almost 11,000 single-aisles had been placed into storage, but this figure has since declined to fewer than 5,000 (including nearly 400 still-grounded 737 Max aircraft).

Rolls royce engines are specifically targeted at the widebody market. Apart from the A380 the rest of the planes which are Airbus A330, A340, A350, and 777 and 787 Dreamliner are in the skies and flying. I get that sentiment is negative at the moment but the fact is planes are flying and will need to be serviced. This time last year there were around 125k daily flights and currently is around 70k so close to 60% and improving so this is the bottom as far as i'm concerned

In the last report the base scenario in which no equity would be raised was for flights to be at 70% of 2019 levels in 2021. They are currently at around 55-60% so as far as I'm concerned there is nothing to be worried about. The only way there will be a raise is if there is another extended national lockdown and flights go back to the 10% levels which is highly unlikely.
If people can't hold for a few months then they need to rethink about wherever investing is for tjmhem or not. Also there is news of rapid testing being a trialled at airports that will most likely be rolled out. No government of any country wants to stop people from flying as they can't afford the subsequent economic transaction. RR has over $6bn liquidity so there is no chance of it going bust. Give it a few weeks and this will be back over £3.

I also think the sp will be at least 150 by month end for the simple reason that the a major source of revenue for NEX is from the US and a lot of that is on a gross contract basis i.e. a significant portion of it is guaranteed. Add to this the robust demand from Morocco and the increasing demand from Spain and the U.K. markets then NEX like FGP have announced today will still be getting at least 50% of their revenue even at this low point.
Also unlike FGP we are not dependent on U.K. rail for revenue and we are as diversidifed as you can get so even if one market goes down the others will still be enough to pull us through. Also no one contract is more then 2% of revenue. And lastly as per the last rns NEX are looking to take advantage of other smaller operators going under. Pre covid business was booming so clearly the company knows what to do.

https://shop.regmovies.com/Ticketing/visSelectSeats.aspx

https://shop.regmovies.com/Ticketing/visSelectSeats.aspx

This is how well Tenet is selling. One is a theatre in Washington and the other in California. Easily over 30 tickets sold each

I said it looks like it will gross $30m not it will or i've heard this. This is based just on what I have seen on Regal site on various cinemas. If you really want to know on how I have come to this prediction then $30M divided by about 2800 is about $11k per theatre. in 3 days each theatre will show Tenet around 30 times so thats around $350 per screening. Standard ticket for 2d is about $10-15 so 20-30 people on normal screens to achieve this. This is not taking into account that I have for simplicity used a low figure for number of screenings. It is actually a lot more than 30. Also this rough calculation doesn't also take into account the more expensive imax and 4dx tickets that are anywhere for $15-25. Taking these two factors into account then selling 10 tickets per screening on average will generate $30M plus.
Again this is just my 2 cents on this. Like everyone else i am waiting for the update tomorrow.

Have been checking out Regal site and Tenet is selling well. Looks like it will clear at least $30M for the weekend if not more. Next couple of weeks will be interesting....

Took a small position at 234. Probably going to go down now lol, but in the medium term this is a bargain

Ive brought 3k worth at £1.27. Cant go wrong at these prices.

From Deadline -
"As of Aug. 24 in the UK there have already been nearly 11,000 pre-sale tickets purchased for Tenet, compared to 7,000 total presales for Dunkirk and 1,800 for Interstellar."

On Sunday there will be more clarity on box office takings. If Tenet does more than $5m in uk then next week will definitely see CINE hit £1. And if CINE hits £1 then most likely it will also hit £1.50 when the shorters crap themselves

Last chance to get in below 5p. ASK is 4.915p but wont stay there for long....

I've been checking a few cinemas on CINE site and there seems to be a trend. Those places that have just standard 2d screenings are selling well but those that have the upgraded 4dx or IMAX screenings on top of the 2d ones are not selling that much on 2d but are doing really well on 4x/IMAX.
Looks like people are happy to pay a few quid extra for the enhanced viewing experience.

are selling well. At £15 a ticket that is very lucrative. Plus the normal 2d screenings are selling well as well. When box office figures for Tenet come out in the next few days the sp will rocket.

Beat me to it lol. Was just about to post the same. Also cannot buy more than £1k without it going nt. Even then I've been quoted 4.72 for a £500 buy. The mm's clearly are struggling to acquire shares hence the rapid increase to the encourage sellers but they will have to quadruple the price before I would even consider it at this stage.

This is coming along nicely. Mining license and mine funding news is imminent which will lead to a massive rerate. Doesn't take much buying to increase the price so when news does hit this will fly.