Trading the stockmarket (NO Referrals)

[Russinating]

Just wanted to double check that I understood it right And I will do my best to keep mine for myself I now need as good returns as possible as I'm a bit late into the savings game lol.

How old are you? Good time to understand and appreciate compound interest which is where the tax-free gains of ISAs really become beneficial, as well as an appreciation for modest but regular annual gains.

 

[silversurfer]

Maintenance is key to RR margins and profitability I read a long time ago so the company is involved year to year revenue not just the one off sales.

They allowed existing shareholders to buy additional discounted

Share dynamic rather then company, sounds like a mr. market lower price story is arguable.

There's this bug going round

dam who knew , good some countries dealt or restrained that better then others hence I hope RR is competitive globally and long term. There's always going to be some negative, natural and man made failure like Japan just got another big quake which isnt abnormal but I hope doesnt cause any secondary man made failure

If we're going to mention crypto we should mention the only common connection which is dollar, IMF, DXY, bretton woods all that. All reflect commodities which crypto is best argued as a security token, its not ownership, a share or bond

https://twitter.com/i/web/status/1360043386166771718

 

[arknor]

I noticed RR shares go up, so I sold them at a small profit

only thing I saw in the news at the time was something about closing some factories to save costs, never saw any news about share sales.
I'll buy back in at some point.

I made a list of profitable companies with uber low PE/PS ratios, going to double check the ratios tomorrow then do some DD and hopefully get me some more long holds.

I get the feeling enough retail investors go burnt on penny stocks pumps already that it's not worth risking any more..
not that I did many anyway, I noticed people on discords are more interested in DD and what other people are holding.

so I'm assuming they lost money and have little idea of how to analyse financials

seems like anyone in weed stocks were losing money, I guess mining stocks will be the next ones to fall

 

[neviditelny]

How old are you? Good time to understand and appreciate compound interest which is where the tax-free gains of ISAs really become beneficial, as well as an appreciation for modest but regular annual gains.

I'm 37 at the moment. And working for NHS as a HSCW. At the moment I've set up £100 as a direct debit to my ISA but also try to put away a further £100-200 a month as well.

 

[pallys]

Anyone know any decent mining funds or ETFs, not gold specific but something spread over the likes of bhp and Rio?
I can only find blackrock mining but has high ter.

 

[platinum87]

Anyone know any decent mining funds or ETFs, not gold specific but something spread over the likes of bhp and Rio?
I can only find blackrock mining but has high ter.

VanEck Vectors™ Global Mining UCITS ETF A USD (GBP) | GIGB, is the only ETF i can find on LSE - 0.5%

https://www.morningstar.co.uk/uk/screener/etf.aspx

 

[Russinating]

I'm 37 at the moment. And working for NHS as a HSCW. At the moment I've set up £100 as a direct debit to my ISA but also try to put away a further £100-200 a month as well.

The NHS part there is quite pertinent, my OH is NHS and I know their pension schemes are decent. If you haven't already find out if you can overpay and if overpayments are matched at all.

Otherwise check https://www.thecalculatorsite.com/finance/calculators/compoundinterestcalculator.php, I think it makes regular deposits have more weight mentally and give you a tangible/physical target. For example, £100pm for 28 years (until you're 65) at an average of 5% pa would achieve a pot worth £73,750. Up that to £200pm and it'll be £147,501, and £300pm would be £221,252.

Alas, I'm also not an IFA or anything similar so seek your own personal advice if needed. This flowchart is often referenced for decent advice: https://i.imgur.com/BfHzwr9.png. So yeah, defo check your NHS pension as a first step.

 

[shaf]

What's a low risk method to raise a stocks and shares isa by 5%?

 

[Alibaba99]

A year hardly makes a difference on 25+ year contracts. RRs biggest problem is 700s leaving the fleet and XWBs not entering quick enough, and 800s and 900s not on the right air frames.

A350 demand is good though.

What airframes do you think the 800 and 900 should be on?

 

[Simon]

What's a low risk method to raise a stocks and shares isa by 5%?

Something with boring dividend paying stocks, dont know if there are funds for such but you could prob spread amongst 5 such stocks.

 

[Russinating]

What's a low risk method to raise a stocks and shares isa by 5%?

The average annualised total return for the S&P 500 index over the past 90 years is 9.8%. Conversely, over the last 10 years, the shares of Apple have delivered an average annual return of 43.5% per year.

So, basically, a diversified portfolio. Some will be winners, some will be losers, but 5% is - I think - a more than realistic annual gain to base future plans on with minimal research or day trading.

That and the above; there's a popular "pie" on Trading 212 for example that aims to issue a dividend daily which you could utilise or replicate.

 

[neviditelny]

The NHS part there is quite pertinent, my OH is NHS and I know their pension schemes are decent. If you haven't already find out if you can overpay and if overpayments are matched at all.

Otherwise check https://www.thecalculatorsite.com/finance/calculators/compoundinterestcalculator.php, I think it makes regular deposits have more weight mentally and give you a tangible/physical target. For example, £100pm for 28 years (until you're 65) at an average of 5% pa would achieve a pot worth £73,750. Up that to £200pm and it'll be £147,501, and £300pm would be £221,252.

Alas, I'm also not an IFA or anything similar so seek your own personal advice if needed. This flowchart is often referenced for decent advice: https://i.imgur.com/BfHzwr9.png. So yeah, defo check your NHS pension as a first step.

I'm planning to find a financial advisor that can help me go through and understand my NHS pension better than I do. Overpayments of my pension is something I have thought of previously, I think I'm paying 7,1% of my wages in pension (could be 9,1) and was thinking about upping it a bit if I could. The £100 in my direct debit is money I know that I for sure can spare for investing/savings. I do also pick up quite a lot of bank shifts at the moment which is mostly used to pay off for some dental treatments I'm getting done. That flow chart is quite interesting and I will look into that further tomorrow
The funds I've picked are funds that have a fairly high risk but have also gone up quite a bit per year so I've taken a chance there, but with a small amount like this it will be ok.

 

[Alex_6n2]

A year hardly makes a difference on 25+ year contracts. RRs biggest problem is 700s leaving the fleet and XWBs not entering quick enough, and 800s and 900s not on the right air frames.

A350 demand is good though.

Demand for the engines is fine

However, RR makes most if not all of it's Civil business profit from TotalCare contracts. These are power by the hour contracts. When operators fly less, they pay less to maintain their fleets. Flying hours for 2020 were about 20% of 2019 for RR engined aircraft, most of which was T700

It loses money on EVERY civil wide body engine it sells (current average for an XWB-85 is ~£1M loss)

 

[dlockers]

Demand for the engines is fine

However, RR makes most if not all of it's Civil business profit from TotalCare contracts. These are power by the hour contracts. When operators fly less, they pay less to maintain their fleets. Flying hours for 2020 were about 20% of 2019 for RR engined aircraft, most of which was T700

It loses money on EVERY civil wide body engine it sells (current average for an XWB-85 is ~£1M loss)

Literally my first sentence pal. My point is that the 700 is leaving the fleet quicker than any other model is entering, and as you rightly pointed out, drives the majority of flying hours. Strong A350 demand is required as odds are the competition will win on the 1000 air frames.

There is no such thing as an XWB-85 btw.

 

[dlockers]

What airframes do you think the 800 and 900 should be on?

I don't mean retrofit, I mean, just that the air frames they built-for didn't do as well as had hoped.

 

[Alex_6n2]

Literally my first sentence pal. My point is that the 700 is leaving the fleet quicker than any other model is entering, and as you rightly pointed out, drives the majority of flying hours. Strong A350 demand is required as odds are the competition will win on the 1000 air frames.

There is no such thing as an XWB-85 btw.

Your first sentence was "A year hardly makes a difference on 25+ year contracts"

This is wrong for a business like RR that relies every year on the net positive cashflow from its TotalCare contracts. Especially when it's commitment to the market was £1Bn of free cash by 2020.

It's a business that was heavily investing in capital and research for new products like Ultrafan. It's a an overhead heavy organisation that simply cannot survive without fleet flying hour associated revenue. It's entire business model is loss leader on a product that currently no one is using.

This is why RR had to seek massive amounts of liquidity (including via a share rights issue), end the expensive pension schemes and make 9000 people redundant last year. It would have otherwise collapsed.

Typo on the XWB, I meant 84 obviously

 

[dlockers]

Your first sentence was "A year hardly makes a difference on 25+ year contracts"

This is wrong for a business like RR that relies every year on the net positive cashflow from its TotalCare contracts. Especially when it's commitment to the market was £1Bn of free cash by 2020.

It's a business that was heavily investing in capital and research for new products like Ultrafan. It's a an overhead heavy organisation that simply cannot survive without fleet flying hour associated revenue. It's entire business model is loss leader on a product that currently no one is using.

This is why RR had to seek massive amounts of liquidity (including via a share rights issue), end the expensive pension schemes and make 9000 people redundant last year. It would have otherwise collapsed.

Typo on the XWB, I meant 84 obviously

Cash flow is also tightly coupled to how many shop visits they execute, when and how they defer them using spare engines or availability management. The £1bn cash flow target wasn't as simple as "hurr durr we'll bill Customers for flying and hit 1bn".

The rest of your ramblings are obvious. Not sure what you are trying to prove??

Edit: Ah you are from Bristol, got it.

 

[Alex_6n2]

Cash flow is also tightly coupled to how many shop visits they execute, when and how they defer them using spare engines or availability management. The £1bn cash flow target wasn't as simple as "hurr durr we'll bill Customers for flying and hit 1bn".

The rest of your ramblings are obvious. Not sure what you are trying to prove??

Edit: Ah you are from Bristol, got it.

You should come down this way, we aren't being made to take 2 weeks unpaid leave

I disagree on the "hurr durr" message from Warren. It was essentially that, but veiled with "Stop spending money on Coupa you idiots"

 

[dlockers]

You should come down this way, we aren't being made to take 2 weeks unpaid leave

I disagree on the "hurr durr" message from Warren. It was essentially that, but veiled with "Stop spending money on Coupa you idiots"

Whatever happened to the Bristol CLE business? Heard you guys couldn't work out which way it was supposed to spin and sent them back to Derby

 

[Alibaba99]

I don't mean retrofit, I mean, just that the air frames they built-for didn't do as well as had hoped.

The Trent 800 on the 777 did pretty well in the early years. The GE90 wasn't exactly a decent engine (BA actually threatened to ground their GE90 powered fleet and then switched to the Trent) and the P&W FW4040 wasn't a big seller beyond their launch customer.

However, GE's bank loaned the cash to Boeing to help them develop the 777ER and in return gained exclusivity on that airframe. When Boeing then went to the 777X GE were more advanced with their potential engine which swayed them towards that, though a couple of years of delays due to GE having engine issues may have changed their opinion. Given what is currently happening with the long haul twin aisle market it remains to be seen if the X will actually gain significant market share.

The A380 was a dead duck before the plane was even proposed. It was a vanity project effectively backed by the boss of Airbus to give them something to rival the B747, when it was clear even at that point that the market was moving more highly efficient long range twin-aisle and not a hub-to-hub aircraft, followed by a short haul hop.