Thoughts on Rolls-Royce

Hi,

Whats people thoughts on RR as. UK recovery stock over next two years. Was thinking of cost-averaging the GraniteSharex X3 Leveraged RR stock.

I know the full-year results in March won’t be promising, but I believe in the long-term this company has good potential in the aerospace industry.

Whats your thoughts?

RR itself aside, the leveraged shares really are not suitable for long holds and DCA. they work on the assumption that the shares are held for day/swing trades.

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Agree on leveraged shares, they rebalance and charge regularly.

RR wise. They have a lot of good IP, but highly leveraged debt. Some companies have been lucky with their business models, others not. RR are in the unfortunately not pile. Not saying they won’t recover, but its not just a case of recovery. They have a lot of debt, and need to spend to diversify/better protect the business going forward.

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I was looking at RR when their share price dipped recently and looked to be a value stock. It went up 8% i think after that Boeing plane engine :fire: over Denver recently. Missed out.:frowning_face_with_open_mouth:

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As mentioned above there is some recovery to be had but don’t expect them to go back up to pre covid levels as they have taken on a huge amount of debt.

They announce their earnings on the 11th March… which we all know will be bad its just whether they will be better or worse than expectations that will make the difference.

If it were me and I wanted to take advantage of the recovery I would buy them normally and put them aside for 3-5 years where I can easily see you making 150%+ however If you are looking at using the 3x leveraged shares this is probably best done a day or so after the earnings announcement hoping they drop you can buy then ride it back up short term… as mentioned leverage is not a great long term way of investing

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It was a Pratt and Whitney PW4000 engine, not a Rolls Royce engine in that plane.

Yeah as @Dougal1984 said, if you look on the day the engine failure was announced they dropped but once it was announced it was a Pratt and Whitney engine that’s when they rebounded and more

A good insight Rich.

Cheers

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Yes that’s why RR bumped up a bit

RR is a bargain, good outlook post covid.