Author Topic: RR - Rolls-Royce  (Read 94232 times)

ValuePadawan

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Re: RR - Rolls-Royce
« Reply #250 on: December 01, 2019, 12:21:21 PM »
Wow I thoroughly enjoyed the writeup thanks!


Spekulatius

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Re: RR - Rolls-Royce
« Reply #251 on: December 01, 2019, 04:59:28 PM »
Wow I thoroughly enjoyed the writeup thanks!

I second this. I do find it strange that  body mentions the doomsday scenario:

1) continued weak cash flows cause a credit downgrade to near junk
2) due to customers getting uneasy about RR.L meeting their LT obligation after above, RR decides to do a deeply discounted rights offering
That would cause dilution at the bottom (foreign ADR holders for sure couldn’t participate and would get screwed) and permanent loss of capital.
Life is too short for cheap beer and wine.

Spekulatius

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Re: RR - Rolls-Royce
« Reply #252 on: December 10, 2019, 03:34:38 AM »
Valueact leaving the board - shares down 3%+.
https://finance.yahoo.com/news/1-rolls-royce-says-valueact-084809104.html

Probably got tired waiting for the turnaround after 4 years and do some housecleaning for next year. They own a substantial position, so if they sell, it could put further pressure on the stock.
Life is too short for cheap beer and wine.

ValuePadawan

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Re: RR - Rolls-Royce
« Reply #253 on: December 10, 2019, 06:19:30 AM »
I wonder what they are seeing at the board level that is making them wave the white flag. With XWB starting to hit the maintenance schedule I'm expecting cash flows to increase and if they can cut costs and reduce headcount by the end of 202o like they are saying they will it seems like odd timing to say the least.

buffetteer1984

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Re: RR - Rolls-Royce
« Reply #254 on: December 10, 2019, 07:08:36 AM »
Could be tax loss selling for valueact.  It's interesting that they would be doing this as the stock is near a low very similar to their investment in ADS.

ValuePadawan

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Re: RR - Rolls-Royce
« Reply #255 on: December 10, 2019, 07:35:29 AM »
Ya it could be. There are many reasons to sell but only one to buy.