After an exceptionally good 18 months I sold the last of my RR shares today and for the first time in years I'm now sat at 100% cash and happy to sit the markets out for a while, maybe a crash or a decent correction is overdue and coming but either way happy to be out for now.
Trading the stockmarket (NO Referrals)
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Soldato
Anything Pharma based is going to keep going up, they're now saying that this vaccine that would stop you getting the Rona, then reduce chances of getting the rona, then not put you in hospital if you did get the rona now needs a booster as the efficiency of it reduces over time, nice little cash cow there...
You already mentioned that though. You wouldn't have necessarily got a 42 times return though, you're talking about investing here a bit later on, you're only hearing about this now via your trader friend - if it cost you double to invest for example then you're looking at 21 times return... Of course, if it were that easy and that common then everyone would just allocate some of their portfolio to a few of these AIM cash shells and make $$$$$
Yup, just keep in mind that it is a punt. They raised circa 30million initially, then a further 50-ish million more recently (at 155p a share). Share price is now 240p a share, so there is some confidence there in this team.
But look at what you're getting - they've got circa 80 million in cash/assets, but at the current price of 240p a share the market cap is circa 200 million... so if you were to invest say £2000 you're basically buying £800 worth of cash/assets and paying a premium of £1200 for your confidence in this team and what they'll do.
On the plus side, it does indeed look like a good team, they've invested significant amounts themselves and clearly, the price is going one way at the moment, though that's before they've necessarily done much (bar, seemingly one acquisition the results of which are to be seen). It's not an unreasonable thing to perhaps anticipate that were you to invest now you might see further increases in price as they make more acquisitions or indeed complete further rounds of funding for that purpose, certainly, the people who bought in at 155 just a few months ago are looking at a nice profit already at the moment. Whether they're successful in the long run is another matter. AIM cash shells got a bad rep in the 00s, some very shady people got involved in them and investors got absolutely screwed, these guys, on the other hand, seem to be the real deal, it's still a small company and rather speculative but the good intentions seem to be there.
It is worth just making sure you know what you're getting into with these things, they're very much a gamble and it is all too easy to get swayed by narratives/promises of huge returns but if you're happy with that and willing to take a punt then, just treat it as such, an investment that might pay off but which you can afford to take a big hit on if it doesn't. Generally not considered to be the sort of thing to commit very much of your portfolio to.
Anyway, the above isn't meant to be investment advice etc.. just my thoughts.
For good reason, the Chinese government is targeting them.
Business fundamentals mean nothing when it's at the whim of a dictator like Xi who is after them their boss and the sector in general
He's getting a little bizarre latley, they're starting to teach "Xi thinking" as a compulsory subject throughout primary to college education.
Especially focusing on business and economics.
And he's in for life atm, so no election to worry abot
Haha I'm up on average 80% on airbus (over 100% on my first buy in) wish I'd just put everything in that instead of diversifying now.
Up 30% on RR.
Sold 1k of my airbus "profits" and put it 50/50 I to shell and BP.
As the price targets on them for 12 months are closer to 40%
And they both have nice dividend yields that will get better with time (and relatively with price rises).
I'm considering selling more of the airbus I have in my isa as I have a large amount of discount staff stock from them that I avoid I come tax on if I keep 5 years (I have 10 year worth of that scheme so far)
Wish I had bought more when I was a poor Apprentice and they were 26 euro
Interesting - I did something similar in cashing out, but I need some of the cash for home improvements - and I'm not willing to see my profits disappear overnight. How long are you thinking of being out for?
Soldato
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Are they building powerplants now or just the Turbines ?
the old addage
Time in the markets is better than timing the markets...
Just as "risky" being out the market as it is being in them. Hardest question you have now is when to go back in
Soldato
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Makes sense it being a closed loop, should definitely up the price a contract like that
Without wishing to be negative - the fact that nuclear power can happen at smaller scale is fantastic - the news surrounding this is quite old?
https://www.energylivenews.com/2020...s-plans-for-16-mini-nuclear-plants-in-the-uk/
It is old yes, but still not a reality yet. Still plenty of scope for success or failure. I very much doubt it's been properly reflected in the market just yet - not until it's definitely a go.
If it were to go well, the export possibilities for this are surely quite promising also.
But then we hear that constantly in defence and it rarely comes to fruition.
Soldato
RR were also involved in a tender for supplying engines to the USAAF for the B52's as well at one point as they didn't want to have all of their eggs in one manufacturers basket iirc..
They do very well in the marine engine sector too
Soldato
I've bought HRI instead of SMT recently. I do have other tech trusts PCT or similar that own TSMC or more infrastructure profitable type tech which is undervalued imo but nothing quite as adventurous as TSLA. Interesting thing is when theres a discount, it can be taken as immediate profit in a sense investment wise
From what I've read on RR the ongoing maintenance not just sales is what drives profits for them. I presume nuclear plants will be profitable for that reason because of that longevity and ongoing efficiency requiring the highest standards which is their thing.
I do hope hydro turbines will be a big deal for them, all these things are green energy and very large scale long term. Their premium on 25 year projects or longer will be justified.
I did the RR 90p trade and wrote in at the same time to sell it at 111p so I wasnt even paying attention, its already sold. It did dip some before now where it seems to have broken above the range it was keeping. That was just a trade on top, I don't own much but they are in FT100 and thats my largest fund because I gave up trying to always judge everything, roughly is good enough
I'm reading miners dive because they are seen as so negative in a green aspect. POLY down 'big', poly mines copper and silver and you cant make solar panels without them continuing to do that. Cheap as chips, about to go ex div and of course its Russian and thats why its cheap I thought prior. BP is Russian too, take the yield on the risk imo not that Im any fan tbh but its a known risk (within the price) vs unknowns.
Why There's Trouble Ahead for Oil Refiners | Barron's (barrons.com)
From what I've read on RR the ongoing maintenance not just sales is what drives profits for them. I presume nuclear plants will be profitable for that reason because of that longevity and ongoing efficiency requiring the highest standards which is their thing.
I do hope hydro turbines will be a big deal for them, all these things are green energy and very large scale long term. Their premium on 25 year projects or longer will be justified.
I did the RR 90p trade and wrote in at the same time to sell it at 111p so I wasnt even paying attention, its already sold. It did dip some before now where it seems to have broken above the range it was keeping. That was just a trade on top, I don't own much but they are in FT100 and thats my largest fund because I gave up trying to always judge everything, roughly is good enough
I'm reading miners dive because they are seen as so negative in a green aspect. POLY down 'big', poly mines copper and silver and you cant make solar panels without them continuing to do that. Cheap as chips, about to go ex div and of course its Russian and thats why its cheap I thought prior. BP is Russian too, take the yield on the risk imo not that Im any fan tbh but its a known risk (within the price) vs unknowns.
Why There's Trouble Ahead for Oil Refiners | Barron's (barrons.com)
Associate
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Not sure I'm a fan of only being able to produce 2 'mini plants' a year.
If we saw 10 plants in 5 years it would be nothing short of ground breaking in my opinion.
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Did the news article not say they could power up to 450k homes, so in 5 years we are talking 4.5m homes, or 6.8% of the UK population. I dunno, maybe that is good.