Fair enough, it would be great to have more conversation about the stock and your knowledge will clearly be greater than mine but posting links to your own content on a separate site that you get paid to write for seems sus to me!
I think the company has huge potential, even without the Nuclear reactors. To my very limited stock knowledge I thinks it’s very undervalued…but then again I thought (and still think) that about Aston Martin and that’s current losing me lots of money.
I understand that view, of course. But I can assure you that I/writers on TMF don’t get paid per view. We get paid a fixed rate per article we write, even if it gets zero views.
Rolls certainly does have potential, especially in energy space, plus the rebound that’s yet to be realised from Civil Aerospace. Undervalued? Potentially, assuming that travel rebounds to normal levels soon. But until that happens, earnings potential has a low ceiling given the debt repayments it’ll have to make in the medium term. I’d say fairly priced now, given the upside risk.
I know, my response where I laughed about that got flagged and removed as I was derogatory to Motley Fool (So fair enough I suppose). I still don’t think it’s ethical to link to your own articles if you are paid to create them and I still refuse to read the Fool ever again. If I had realised it was his own article to begin with then I would not have slagged Motley off, I didn’t intend it to be a personal attack.
Many years ago i remember an investment trust manager talking about company moats. He was pointing out what a wide moat rolls royce had. As in how hard it would be to start making jumbo jet engines?. Obviously he had a point but at the same time he was making excuses for the poor performance of rolls royce due to the problems with the trent engines. They were selling them at less than cost but should have made up for that with the maintenance contracts. Alas it didn’t go well due to the trent problems.
The point of course is that moat wont always guarantee you are a reliable growth company. Covid saw to that. And interest rates have given the other growth companies a good kicking to boot.
As much as RR has a moat, don’t forget that it only holds 18% of the engine market share. Of which, is only long-haul.
If you’re to look at travel trends, most volume is short-haul with long-haul still lagging far behind. The only route that’s fully recovered is cross-Atlantic. Asia Pacific remains rather dead, hence the 65% of 2019 figure we got last quarter compared to the industry’s c.90%.
Hi they sold at less than cost so they were guaranteed the maintenance side. Overall it was lot more profitable for them go down that route.
A tiny bit like software as in “software as a service” charging monthly with constant maintenance and updates instead of a one off payment.
The Rolls-Royce share price has shown relative strength over the past couple of months. The stock has rallied by 35% from its bottom and could see further upside given the number of positive developments lately. With that in mind, I’m tempted to open a position.