Worth a Punt on Rolls Royce?

down another 10% today – 105 means its lost 90% of its value in ~2 years. Ouch!

How to make a small fortune – start with a large fortune and buy RR shares.

On the way up today, but for how long?

Brother in law works at a plant designing & producing all sorts of rubber seals and suchlike, mainly for aero and train markets, some ferries etc.
He thinks that it’s 18mths-2 years before aero is back up properly, that’s being optimistic.
And for much of that time they are predicting grounded planes.
After the groundings though, a boom as everything gets refurbished…

I bought a few shares when I thought they were at their lowest (silly me) but decided to keep them for now. I’ve got a notice there’s Rights Issue the end of the month, something new to me, the upshot seems to be as a share holder the right to buy newly issued shares at reduced rate, sell the rights to those shares or do nothing and risk current shares being diluted – fancy way of saying losing more money. Am I about right? What does STW (Soros Track World) think?

When is the ex- date on the rights issue? I inherited a small amount of RR shares (at 958p per share), but have tripled my holding in them by buying at 135p today, at a fraction of the original price. They seem to be rallying somewhat, closing at 150p

Well, that was worth a punt for the last 2 days.

This is quite the rollercoaster. It’s better than Tesla for anyone that went in last week 😂

When is the ex- date on the rights issue?

“Rights are expected to be issued to eligible holders on 28th October 2020 on the following basis;

10 rights for every 3 ordinary shares held.

Holders will then have the option to exercise those rights on the following terms.

Exercise 1 right to receive 1 new share at a price of GBP 0.32 per new ordinary share.

Alternatively, you will also be able to sell your rights or do nothing and let the rights lapse.”

WTAF !

246p

I know!

26% up in 75 minutes

Wish I’d stayed in now. Started the week buying at 121, got out at 151.

@thegeneralist how is your pot looking now?

Chesh…

Hmm. Can’t work out if my glass is half full or half empty. My dashboard was showing a gain of ten percent on my holding overall, which would be great…..
BUT that doesn’t take into account the fact that I ditched 30% of my holding earlier this week when it passed through the 135p mark.

I saw them jump 25% that day and figured I would sell and get back in when they fell back down.

But of course they didn’t, they went UP another 100p.

But keep it to yourself though. Don’t want anyone else on the thread ripping the piss out of me. 😜

Part of the reason I sold some was to get some money to exercise my rights on the new issue. I’m trading in my ISA and didn’t have enough cash left to buy my allocation of 10 for 3 for my full holding. So I sold some at 135 on the basis that I could buy at the 32p discount price during the rights issue. I think that was a reasonable approach, but TBH I don’t really know.

Interested in opinions….

Buy and hold for 3 yrs whatever happens, exercise rights was / is my strategy.

This could be a case study explaining how the most successful trading accounts are those of dead people that don’t touch them.

Well I had a small punt and bought in when they were 184p, then watched it fall. Stopped watching until today when I got an alert saying it was up 95% since Monday! Wish I’d gone balls deep now 🙂

58% down today. Now at 97p😲
Might be a good time to jump in…

It’s because it’s trading ex-rights. From what I can see I will be able to participate and pick up shares at discount as part of their funding to make up for this.

True dat.

So I’ve been allocated 6646 rights to buy at 32p, which when added to my 1900 odd shares worth 96p each, would seem to be worth about £6.3k

So, I’m fully up.

Maybe.

Shit this is confusing. Who should I sue?

Aha.
It looks like I can sell my rights at around 64p each if I want. When you add 64p plus 32p, you get 96p, which is the price of my actual shares. How cool is that? I think I’m starting to almost understand this.

Would it be nuts to buy at this price without holding any already and so missing out on the rights deal?

You haven’t missed the rights deal. See my stealth edit.

Well, ok, you have missed the rights deal, but the share price has fallen in line with the rights deal.
I think that each new RR share I have will cost me (10x32p + 3×230)/13. Ie 10 lots of the discounted issue price plus whatever I paid for each of the three shares that I had ( it’s a 10 for 3 rights issue).
Which works out at 77.7p.

So yes, you’ll be paying a premium of 19p per share on top of that if you get in now.

But given that the rights issue was at a 40% discount (IIRC) then the target price per share would be (10x53p + 3×230)/13.
Which is 94p. Which is almost exactly what they are trading at.

Or at least it was. It’s now droped to 90p, which is rather splendid as I sold a chunk of mine at 96.5 at midday.

I have 424 shares bought through Trading212. How do I go about exercising my rights to purchase my entitlement? I’ve had nothing from them and the app doesn’t tell me anything either. I’m slightly worried that I might miss the deadline, whenever that is.

Can you see the rights on your dashboard?
I have them listed on there just above the actual shares.
AIUI I can buy or sell those rights as I want using the normal buttons up until 6 November.

At some point today Ajbell will send me a secure message officially informing me of my rights and asking me how many of them I want to exercise.

Going to exercise them all I think.

Then on 12 November the shares are actually transferred to me.

The key, very very important thing is NOT to let your rights lapse. Either trade them now for around 60p or exercise them. If you do nothing then you will wake up on 7 November to find you are too late to exercise them and the resale value has fallen to zero. ( Which is of course just what you said creakingdoor)

Note that the6 & 12 Nov dates are given by Ajbell. Your lot might have different dates.

Yes, there’s a little box just appeared stating that they are trading ex-rights and notification will be sent out shortly.
As this is the first RI I’ve been involved with I don’t want to screw it up and miss and deadlines.
EDit.
I think I’m now waiting for an SRN and entitlement number to log in and state my wishes.

Also finding this a bit confusing…

I bought £900 worth of shares last week with HL

Today those shares are now worth £340 but also I seem to have been given £700 of new shares, is that right?

Plus I got an email saying (I think) I was allowed to buy new shares at 32p

I need to look more into it, but seems like a no-brainer. Anyone else?

Today those shares are now worth £340 but also I seem to have been given £700 of new shares, is that right?

No, the new chunk are not new shares, they are rights to buy new shares. Do not do nothing with then or they will miraculously drop to zero value around 6/7 November.

Plus I got an email saying (I think) I was allowed to buy new shares at 32p

Yep, that’s the chunk in the paragraph above.

This is all IMHO of course. Happy that be put right by someone who knows better.

( Based on a ten minute phone call with ajbell this morning who were.most helpful)

And indeed the fact that I completely screwed up the British Airways rights issue a few weeks ago when my rights expired when I missed the deadline. Luckily I only actually owned 1 share at the time, so it was a cheap lesson.

Ok, it appears I’m talking partial bollocks:

( Which anyone who has read the thread knows all too well😜😄😁)

The fourth option is to do nothing. In this situation, shareholders’ rights are expected to be sold in the market at the best available price by Rolls-Royce and the proceeds returned to shareholders via their investment platform provider minus any charges.

Taken from:

https://www.sharesmagazine.co.uk/article/the-options-for-rolls-royce-shareholders-as-2-billion-rights-issue-looms#:~:text=A%20shareholder%20vote%20to%20approve,their%20holding%20before%20that%20date.

Tempted to buy in now!

72p!!

Buy a few shares in Givaudan Switzerland. Steady strong growth.

Givaudan looks like it’s peaked and is dropping over the past month? Maybe worth waiting until it reaches the bottom of its fall?

The good thing about random tips such as above is the one thing it tells you is that’s one thing not to invest in.

68p.. are Rolls Royce on the tarmac yet?

Edit.. 66p

The deadline for the rights issue for anyone stuck in this mess is the 4th November.

I work in the Barnoldswick plant which they are essentially trying to shut and have shares as an employee.

It is a bit galling to be shelling out for new shares whilst at the same time being at risk of redundancy, but hey ho.

is a bit galling to be shelling out for new shares whilst at the same time being at risk of redundancy, but hey ho.

Fair point. I really hope it works out for you.

Thanks pal. We’re due to go on strike this Friday barring some sort of miracle, which seems like such an archaic thing to do in 2020. Fingers crossed for that miracle!

The degree of skill and knowledge locked in the Rolls Royce workforce cannot be permitted to be lost. I’m in awe every time I’m at work when the Trent 1000s burst into life within 30 seconds of throwing the engine master switches, and then run faultlessly in sometimes appalling conditions until the wheels crunch into the runway 15 hours later.

If I had to choose between the airline I work for and Rolls Royce to get a government bailout to survive, I’d pick Rolls Royce in a heartbeat.

The degree of skill and knowledge locked in the Rolls Royce workforce cannot be permitted to be lost

This. Every time, this.