The Rolls-Royce share price is down 66% in 2020. Is it a buy, or a value trap?

first_img See all posts by Alan Oscroft Alan Oscroft | Thursday, 27th August, 2020 | More on: RR Rolls-Royce (LSE: RR) on Thursday reported a pre-tax loss of £5.4bn for the first half of 2020, after the pandemic lockdown devastated the aviation industry. The Rolls-Royce share price lost 9% in early trading.Chief executive Warren East said: “The Covid-19 pandemic has significantly affected our 2020 performance, with an unprecedented impact on the civil aviation sector with flights grounded across the world.”5G is here – and shares of this ‘sleeping giant’ could be a great way for you to potentially profit!According to one leading industry firm, the 5G boom could create a global industry worth US$12.3 TRILLION out of thin air…And if you click here we’ll show you something that could be key to unlocking 5G’s full potential…That H1 loss is bad, but what’s most important right now is the company’s liquidity. I’m sure demand for Rolls-Royce’s products and services will recover, but it could take some time. And there’s a limit to the amount of cash the company can afford to lose in the meantime. It’s no wonder the Rolls-Royce share price has fallen 66% so far in 2020.Balance sheetThis year’s crash has certainly hit Rolls-Royce’s balance sheet hard. From a position of net cash of £1.4bn at the end of 2019, the company has slumped to net debt of £1.7bn (excluding lease liabilities). That’s the kind of thing that happens when a company suffers a free cash outflow of £2.8bn. And there’s going to be more pain to come in the second half. Total free cash outflow of approximately £4bn is expected for the full year.Despite that, the balance sheet seems safe for the moment, which should lend some short-term support to the Rolls-Royce share price. Total liquidity stands at £6.1bn, comprising £4.2bn cash plus loan facilities.Restructuring, cost reduction and job losses are helping the firm weather the current storm, but there’s more needed. The company has identified a number of potential disposals that should generate more than £2bn. And East adds: “We are continuing to assess additional options to strengthen our balance sheet.“Rolls-Royce share priceThe big question for investors: is the Rolls-Royce share price a buy now? I don’t have an easy answer.I’ve been bullish on Rolls-Royce for a long time. It’s had its ups and downs, but I’ve considered it to be a well-managed business that should enjoy strong long-term demand. The firm’s involvement in the defence business also makes it (excuse the unavoidable pun) a defensive investment too. It’s one I’d generally consider to be resilient in the face of economic downturns.But the current economic downturn is hitting its key markets very hard and killing the Rolls-Royce share price. Rolls doesn’t make money from selling engines, but from their long-term maintenance, repair and parts contracts. It’s a bit like the famous Gillette approach of selling razors cheap and making money on the blades. But that very model counts against the company in the current downturn, when planes just aren’t flying.Recovery, but maybe not yetI’m still convinced Rolls-Royce can provide solid long-term rewards for investors. But I can see more short-term pain coming its way — and more share price volatility — before things get better. It’s on my potential bargain buy list. But I’ll wait until I see some glimmers at the end of the tunnel. And particularly the decisions the company makes on how to raise more capital. Simply click below to discover how you can take advantage of this. The Rolls-Royce share price is down 66% in 2020. Is it a buy, or a value trap? Enter Your Email Address Image source: Getty Images. Markets around the world are reeling from the coronavirus pandemic…And with so many great companies trading at what look to be ‘discount-bin’ prices, now could be the time for savvy investors to snap up some potential bargains.But whether you’re a newbie investor or a seasoned pro, deciding which stocks to add to your shopping list can be daunting prospect during such unprecedented times.Fortunately, The Motley Fool is here to help: our UK Chief Investment Officer and his analyst team have short-listed five companies that they believe STILL boast significant long-term growth prospects despite the global lock-down…You see, here at The Motley Fool we don’t believe “over-trading” is the right path to financial freedom in retirement; instead, we advocate buying and holding (for AT LEAST three to five years) 15 or more quality companies, with shareholder-focused management teams at the helm.That’s why we’re sharing the names of all five of these companies in a special investing report that you can download today for FREE. If you’re 50 or over, we believe these stocks could be a great fit for any well-diversified portfolio, and that you can consider building a position in all five right away.center_img Our 6 ‘Best Buys Now’ Shares 5 Stocks For Trying To Build Wealth After 50 Click here to claim your free copy of this special investing report now! I would like to receive emails from you about product information and offers from The Fool and its business partners. Each of these emails will provide a link to unsubscribe from future emails. More information about how The Fool collects, stores, and handles personal data is available in its Privacy Statement. Alan Oscroft has no position in any of the shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. Renowned stock-picker Mark Rogers and his analyst team at The Motley Fool UK have named 6 shares that they believe UK investors should consider buying NOW.So if you’re looking for more stock ideas to try and best position your portfolio today, then it might be a good day for you. Because we’re offering a full 33% off your first year of membership to our flagship share-tipping service, backed by our ‘no quibbles’ 30-day subscription fee refund guarantee.last_img read more

Keino to step down as Kenyan Olympic chief

first_imgBut the International Olympic Committee (IOC) suspended funding for sport in Kenya earlier this year after NOCK failed to hold their elections on May 5.Kenyan great Tergat meets world athletics chief Seb Coe in Kampala recently. Tergat is set to lead the NOCK“We need to get new office bearers to take the sport forward. We have a very short time between now and April to prepare our national teams for the Commonwealth Games in Gold Coast, Australia,” Keino said.Two-time silver medallist and former world marathon record holder Paul Tergat is so far the only candidate seeking to replace Keino in the September 29 vote.Share on: WhatsApp File photo of Kenyatta sends off the Olympics team. A kit scandal has hit the team after the games leading to calls for reform in the Olympic committee led by KeinoNairobi, Kenya | AFP |  Kenyan Olympic chief Kipchoge Keino said Wednesday he will not stand for re-election during the General Assembly in Nairobi on September 29.The 77-year-old double Olympic gold medallist has been at the helm of the National Olympic Committee of Kenya (NOCK) since 1999 when he took over from Charles Mukora, who resigned following the Salt Lake City Winter Olympics bribery scandal.“I believe it is the right time to hand over the baton to someone else. I have served four terms and that’s enough,” said Keino, whose last term in office has ended in acrimony after four of his top officials were arrested and charged in court with stealing team uniforms and mismanaging the Kenyan athletes at the Rio Olympics in August.Up until now Keino had insisted he would run for another term at the helm.last_img read more

FAVORED SAM’S SISTER RALLIES WIDE TO WIN MONDAY’S GRADE II, $200,000 SANTA MONICA STAKES BY 1 ¼ LENGTHS; HOLLENDORFER, TRUJILLO TEAM FOR SEVEN FURLONG VICTORY IN 1:22.42

first_imgARCADIA, Calif. (Jan. 19, 2015)–Favored Sam’s Sister rallied wide-out to take Monday’s Grade II, $200,000 Santa Monica Stakes by 1 ¼ lengths at Santa Anita, as the Jerry Hollendorfer trainee covered seven furlongs in 1:22.42 under Elvis Trujillo.By 2006 Santa Anita Derby winner Brother Derek, Sam’s Sister employed tactics similar to those used in an upset win in the Grade I, seven furlong La Brea Stakes on Dec. 26. Fourth into the far turn behind a three-horse duel comprised of eventual runner-up Sweet Marini, Dancinthenightaway and My Sweet Addiction, Sam’s Sister pounced on the leaders midway around the turn and wrested the lead from Sweet Marini inside the sixteenth pole.“It was the perfect trip,” said Trujillo, who has been aboard for all six of Sam’s Sister’s career starts. “I knew there was going to be a lot of speed in there and I knew it would be fast early-on (22.10, 43.87 and 1:08.71). But I knew that sooner or later they would have to stop. She’s a nice filly.”Off at 6-5, Sam’s Sister paid $4.40, $2.60 and $2.20. Owned by Mark Dedomenico, LLC, Hollendorfer and George Todaro, she picked up her fifth win and with the winner’s share of $120,000, increased her earnings to $427,450.“We got a 22 and 43 (quarter and half mile fractions), so it makes it a little easier to close ground,” said Hollendorfer, who registered his meet-leading sixth stakes win. “We thought that might happen, but then when Dancinthenightaway kind of shook loose a little bit, it looked a little bit risky. But we were able to sustain and run her down in the end.“I’m just taking these races one at a time (when asked if she might stretch out next time). We thought she would run long (entered and scratched out of this past Saturday’s La Canada Stakes at 1 1/16 miles), but we thought this was a more advantageous race, so that’s why we went here.”Ridden by Martin Garcia, Sweet Marini slugged it out on the front end and was second-best, finishing 2 ¾ lengths in front of Harlington’s Rose. Off at 5-1, Sweet Marini paid $3.40 and $2.80.Off at 10-1, Harlington’s Rose ran from well off the pace under Joe Talamo and paid $4.60 to show.Live racing resumes at Santa Anita on Friday, with first post time at 1 p.m. Admission gates open at 11 a.m.last_img read more

STABLE NOTES BY ED GOLDEN – SATURDAY MAY 7, 2016

first_imgTRAINER SEEKS TO UPSET BEHOLDER ON SUNDAYPALMA, D’AMATO DOUBLE, TALAMO WINS THREETACO FIESTA AT SANTA ANITA NEXT SATURDAY SOUZA HOPES CAREER MARCHES FORWARD TOMORROW            Felipe Souza is a 30-year-old trainer only three years in the business stateside, flying far under the radar at this point in his aspiring career.But if he were to upset three-time Eclipse Award champion Beholder in Sunday’s Grade III Adoration Stakes, he might become an overnight sensation.Souza has not fallen that far out of touch with reality, however.            Training out of San Luis Rey Downs, Souza will saddle Backintheacademy in Sunday’s Adoration, for fillies and mares three and older at 1 1/16 miles. The six-year-old Florida-bred mare owned by the Freedom Stables of Eduardo Magalhaes Venosa of San Marcos is a rank outsider at 30-1, while Beholder, winner of 11 of 12 starts at Santa Anita, sits at 1-9.Souza knows he’s shooting for the moon and is not delusional about his chances. He says second or third would be great.“This could be her last year racing,” Souza said of the daughter of Put It Back, winner of just two starts from 32 races. “If she earns some black type by finishing in the money, we would be thrilled. She finished third last out at Los Alamitos but lost a shoe in the race.“She’s training well, it’s a small field, so we’ll give it a try.”Souza, a native of Brazil, got his training license nine years ago. Backintheacademy is one of only three horses he has in training at San Luis Rey.“We know she’s a longshot, but we hope she can sit back and try to pass horses late,” Souza said. “We hope she can earn some black type.”The Adoration, race five of nine: Moyo Honey, Drayden Van Dyke, 12-1; All Star Bub, Rafael Bejarano, 12-1; She’s Reddy, Santiago Gonzalez, 30-1; Backintheacademy, Brayan Pena, 30-1; Sheer Pleasure, Martin Garcia, 8-1; and Beholder, Gary Stevens, 1-9. FINISH LINES: Track Superintendent Dennis Moore reported just over an inch of rain hit Santa Anita from Friday into Saturday morning, but he expected the main track to be listed as “fast” barring further rain. The track was sealed prior to Friday’s races and was closed for training Saturday morning . . . David Hofmans had to scrap Saturday’s scheduled workout of Melatonin and will breeze the Santa Anita Handicap winner when track conditions are suitable. Trainer John Sadler also had to reschedule the work for champion Older Female of 2015 Stellar Wind, who also was listed to breeze this morning. Hofmans, meanwhile, was accepting congratulations all around for winning Friday’s Grade III American Stakes with Home Run Kitten under Joe Talamo, who won three races on the day . . . The Two P’s proved profitable Friday, as trainer Hector Palma and apprentice jockey Brayan Pena teamed to win two races, the second with favored Magical Touch (4.60) and the eighth with longshot Sanitation ($21.20), who rallied from last after a tardy start to score by a head in a furious finish. “He’s a good rider and he listens to instructions,” Palma said of Pena, who is represented by agent Bill Sadoo. “Sanitation has a tendency to shy from the other horses at the break. I told Brayan yesterday that if he did it again, keep him in the center of the track, make a strong run the last part, and maybe we’ll get a piece. We got more than a piece. We just got lucky.” . . . Trainer Mark Glatt also registered a double, with last-to-first winner Big Tire ($22.80) piloted by Santiago Gonzalez in the fifth and front-running favorite Wildfire Kid (5.40) under apprentice Chad Lindsay in seventh. Glatt tied Doug O’Neill for the training title at the recent Los Alamitos meet, where he has some of his 75 horses in training, and others at Santa Anita . . . Phil D’Amato, fresh from capturing his first-ever training title at Santa Anita’s Winter Meet, also got off to a flying start, winning with odds-on favorites Mysterious Miracle in the fourth and Larry Birdstone in the ninth . . . Jockey Abel Lezcano, who rode Nancy From Nairobi to victory in the Royal Heroine Stakes on opening day, has been suspended three days (May 12, 13 and 14) for causing interference in the race. No disqualification resulted . . . Martin Garcia rides Robert B. Lewis third-place finisher I Will Score for Jerry Hollendorfer in next Saturday’s Grade III Lazaro Barrera Stakes for three-year-olds at seven furlongs.last_img read more