Why has Rolls Royce stock gone parabolic in the last few years?

SneakySpectator

I remember when they did that reverse split, right around covid time to try and prevent the share price from appearing like a penny stock. Now it's up like 2000% it's insane. It's now the UKs 10th most valuable company.

Obviously they're a major defence contractor and aviation company, but how did they go from zero to hero in 4 short years?

VXman

Dunno, but i wish I'd bought some shares in 2020-2022

tetrarch

The short answer is a transformative new CEO, much quicker and stronger bounceback in aviation demand after COVID and (in my view) excitement regarding SMR's

I bought some in Nov-21 as I thought they were oversold at ~1.30. When they came down to 70p in Oct-22 I thought that it was way too low, even if the debt was a problem, the SMR's would bail them out, so I switched out of half my Whitbread (COVID recovery play)

I'm in at net 95p so a very happy bunny as they've paid for my extension

Regards

Tet

Tucosalamanca

Perhaps look at how other defence contractors have performed, particularly European companies.

It's not insane, they're performing broadly in line with their peers.

BAE Systems, Rheinmetall, Saab, Dassault, Leonardo, Thales, all similar stories.

SneakySpectator

tetrarch said:

The short answer is a transformative new CEO, much quicker and stronger bounceback in aviation demand after COVID and (in my view) excitement regarding SMR's

I bought some in Nov-21 as I thought they were oversold at ~1.30. When they came down to 70p in Oct-22 I thought that it was way too low, even if the debt was a problem, the SMR's would bail them out, so I switched out of half my Whitbread (COVID recovery play)

I'm in at net 95p so a very happy bunny as they've paid for my extension

Regards

Tet

It's amazing what a new CEO can do for a company.

Tucosalamanca said:

Perhaps look at how other defence contractors have performed, particularly European companies.

It's not insane, they're performing broadly in line with their peers.

BAE Systems, Rheinmetall, Saab, Dassault, Leonardo, Thales, all similar stories.

But why? What's changed in the last 4 years to make all these defence companies go parabolic? You think it's all driven off the war in Ukraine?

Tucosalamanca

But why? What's changed in the last 4 years to make all these defence companies go parabolic? You think it's all driven off the war in Ukraine?

I do wonder about you.
The reasons are in plain sight, nothing mysterious or surprising, the day-to-day news flow is enough to tell you why.

We have war in Ukraine, new administration in America with different objectives, Europe needing to increase its defence spend, less reliance on USA, perceived threat from the East, political instability around the world, investors looking for more traditional plays, investors divesting from US, problems with Boeing, etc, etc, etc

Desmond_Hume

Defence contractors doing well during war? What is this madness being spoken of here…

SneakySpectator

Tucosalamanca said:

But why? What's changed in the last 4 years to make all these defence companies go parabolic? You think it's all driven off the war in Ukraine?

I do wonder about you.
The reasons are in plain sight, nothing mysterious or surprising, the day-to-day news flow is enough to tell you why.

We have war in Ukraine, new administration in America with different objectives, Europe needing to increase its defence spend, less reliance on USA, perceived threat from the East, political instability around the world, investors looking for more traditional plays, investors divesting from US, problems with Boeing, etc, etc, etc

I'm hoping you took out a £50k loan from the bank against your home and went all in on Rolls Royce, seeing as it was such an obvious play. 

Tucosalamanca

SneakySpectator said:

Tucosalamanca said:

But why? What's changed in the last 4 years to make all these defence companies go parabolic? You think it's all driven off the war in Ukraine?

I do wonder about you.
The reasons are in plain sight, nothing mysterious or surprising, the day-to-day news flow is enough to tell you why.

We have war in Ukraine, new administration in America with different objectives, Europe needing to increase its defence spend, less reliance on USA, perceived threat from the East, political instability around the world, investors looking for more traditional plays, investors divesting from US, problems with Boeing, etc, etc, etc

I'm hoping you took out a £50k loan from the bank against your home and went all in on Rolls Royce, seeing as it was such an obvious play. 

I don't speculate on individual stocks. The time to take out a loan was a few years ago.

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