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Rolls Royce


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Lightly Toasted

The shares have had a bit of a hammering since JPMorgan downgraded them with a target price of 75p.

Interesting chatter here

https://www.lse.co.uk/ShareChat.asp?ShareTicker=RR.&share=Rolls-Royce-Holdings

This one tries to put the current valuation in perspective:

In 2015 Emirates Airlines signed a contract for 200 Trent 900s including long-term service support at a cost of US$9.2 billion or US$46 million per engine.

IN THEORY,

With the current Mcap of 8.5Bn, Emirates could have fully bought RR. Not just civil aero, the whole thing. Heck, maybe Emirates could go into electric aviation themselves....

A nation, instead of comissioning RR for 5 Small Nuclear Reactors at 1.5Bn a piece, why not buy RR as a company? Civil aero, MTU diesel & hydrogen, nuclear subs, all this know how, they all come as a promotion for free.

This is not even perspective or business mind or anything, this is just basic math. Rr is heavily undervalued and everyone here knows it.

 

I'm down a few hundred at the moment -- my gut feeling is that I should double down -_-

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Bobthebuilder

I have bought 2 chunks of these recently.

Not buying anymore though, its the lack of any dividend that puts me off.

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12 hours ago, Bobthebuilder said:

I have bought 2 chunks of these recently.

Not buying anymore though, its the lack of any dividend that puts me off.

Fair point -- I do have some shares for dividends but RR isn't one of them :)

(until 2023 at the earliest, according to its loan terms).

 

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Democorruptcy

I got chatting to an old bloke while walking on Anglesey recently. He said he used to be in upper management at Wylfa but now retired. He's still in touch with people there and he told me the small RR reactors are a done deal, with 4 going to Wylfa and 2 to Trawsfynydd. The way he was talking about it, i thought something was happening quite quickly but on reading up on it, it's production in the 2030's? Walking home I was going to be a buyer but the reading put me off again, though I'm still tempted.

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Jesus Wept
Posted (edited)

There’s other deals being made all the time:

eg this one:

https://www.pesmedia.com/dreadnought-nuclear-submarine-09052022
 

3497AC5C-3B34-4321-B0CB-846B46FCFC22.thumb.jpeg.e70ada31ea5f53968df35d2c8998e1f1.jpeg

 

I bought two tranches at 140p and 100p.

Final ladder is 61p if it is ever reached - and I’ll make my BIGGEST purchase THEN to average out.

Then I am done. 20 year hold it may be 😬

Edited by Jesus Wept
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Democorruptcy

Oh well it's only money.... told myself if it dipped to 79p again I'd buy a few and it did today. No divi, so if it rolls over I got what I deserved.

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Main issue I have is the very clear intention imo of a concerted attack on air travel for the plebs. 

Why I'm avoiding shares like this or airlines. Good luck though. 

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6 hours ago, ccc said:

Main issue I have is the very clear intention imo of a concerted attack on air travel for the plebs. 

Why I'm avoiding shares like this or airlines. Good luck though. 

TPTB laid out 2030 and 2050 as being big climate milestones. There was a document floating around a few years back illustrating the UK was going down to three airports. LHR, Belfast and one in Scotland iirc. At the time seemed like pure fantasy. Not so sure now given the current narrative.

Rather than a RR play I would probably stick to uranium for the power station side of the business.

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4 minutes ago, A_P said:

TPTB laid out 2030 and 2050 as being big climate milestones. There was a document floating around a few years back illustrating the UK was going down to three airports. LHR, Belfast and one in Scotland iirc. At the time seemed like pure fantasy. Not so sure now given the current narrative.

Rather than a RR play I would probably stick to uranium for the power station side of the business.

Yes I remember that document. It was more of a 'wish list' is seemed or target. But as you say now I'm not so sure. 

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