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Dinvestoy, I'm still very bullish on Rolls but I'm happy to wait for a cheaper entry if I believe the risk profile changes, which I believe it has. If the events don't play out as I expect then so be it, that's investing but it's prudent to manage risk too. In the longer term this price is still very cheap to be clear.
I am optimistic long-term, but am also sitting on the side now and expect a cheaper entry around 100-110p level. Main reason for me is the Brexit deal, which I'm sorry to say I see as dead in the water now. Secondly, I think the results are unlikely to surprise on the upside with the slow wide body flying hours. That said they could make some very bullish statements going forward and the SMR news is very positive.
Brexit no-deal will be horrific for the UK economy and I can't see how they can negotiate their way out of this mess despite all the PR spin.
Do you think they know they can buy the same company here 20% cheaper?!
Looks like a strong open in the US.
Yes, quite a slow start today, but I expect will climb to have a strong blue finish. Brexit deal uncertainty actually makes this an even more attractive investment for overseas investors with the low GBP value.
https://www.reuters.com/article/health-coronavirus-airlines-vaccine-idUSKBN28H1E7?taid=5fce250d5b1bc70001e3f8b9&utm_campaign=trueAnthem:+Trending+Content&utm_medium=trueAnthem&utm_source=twitter
Positive comments from Reuters.
Yes, but US is also "ex-rights" and adjusted now. Massive difference, so either a strong correction down on US side, or upwards correction here when US markets open.
Tom, I seriously did think that on their first day post- price adjustment! But the mismatch in price is perplexing and I can't see why it should have risen so much over there.
After peaking at 187p in the US on friday, it's struggling to hold 130 here. Very strange. This deserves to be higher but I doubt it will reach close to the levels over the pond for a while.
Thanks- am still indirectly invested in RR via FTSE 100 tracker now so very happy to them continue onwards and upwards. Each to their own with their investing style. Of course it's still very undervalued here but I'm very happy with my entrance-exit levels and if the buying opportunity presents itself again I will buy in again.
Fantastic rise here! :) I'm all out now but was in at a low entry (when moral was rock bottom). Profit is profit. GLA those holding and will keep an eye on the financials perhaps for a re-entry.
Not sure if some of the yanks buying yesterday realised there was a price adjustment! Could explain the brief peak to $2.1!
Sold half my holding...expecting a retrace unless Brexit deal goes through. Has had a good rise these last few days.
From a post on yahoo finance chat regarding RYCEY:
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“Technically”, the dividend is a “Return of Capital”. I believe that’s why there was no PR on it. It is also why the lows today were calibrated to yesterday’s close at $3.39. Subtract $1.90 and you get $1.49. The big boys are obviously loading up. Highest volume by far ever for RYCEY.
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So return of capital ("dividend") paid out to US folks who were unable to participate in rights issue. This explains the miscalibration between RR and RYCEY, which should follow more closely now that both are reflecting post-RI, although I've no idea why the correction was not synchronised with the UK.
As has been posted already RYCEY opened at $1.49 and ended up 16% at $1.73 (equivalent of 129p) with intra-day peak at $2.1 (157p). I expect the US and EU will follow with their approval in very quick succession and the yanks know this, which is why we had the late afternoon rally. Very positive news today.
Exactly Ccassidy123, well explained. We should be in for a sizeable gap up tomorrow. Investment banks were advising US clients to buy UK stocks and it seems RR is top of the list as a promising recovery play.
Wait - according to RYCEY on yahoo it reached 2.23 USD (167p)? That can't be right, hmm.
Am I reading that right, it's just cleared 131p?
Fantastic - yanks buying big on UK stocks. Should clear 120 very soon :D
...oh and:
U.S. airlines would receive $17 billion for four months of payroll support under a new $908 billion bipartisan Senate COVID-19 relief proposal
I would have thought these themes brought optimism today:
U.S. ready for 'immediate mass shipment' of COVID-19 vaccines
Brexit deal (despite the last-minute grumbling) is being slowly priced in
UK stocks (already undervalued) are looking more attractive before the rally in sterling starts in earnest.
Recovery scenarios...
www.cirium.com/thoughtcloud/global-airline-recovery-scenarios-2022-beyond/