Should you buy Rolls-Royce shares in the rights issue?

first_imgShould you buy Rolls-Royce shares in the rights issue? 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. Image source: Getty Images. Roland Head | Wednesday, 14th October, 2020 | More on: RR Roland Head 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. Enter Your Email Address Our 6 ‘Best Buys Now’ Shares There’s a ‘double agent’ hiding in the FTSE… we recommend you buy it!center_img Don’t miss our special stock presentation.It contains details of a UK-listed company our Motley Fool UK analysts are extremely enthusiastic about.They think it’s offering an incredible opportunity to grow your wealth over the long term – at its current price – regardless of what happens in the wider market.That’s why they’re referring to it as the FTSE’s ‘double agent’.Because they believe it’s working both with the market… And against it.To find out why we think you should add it to your portfolio today… Simply click below to discover how you can take advantage of this. 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. Click here to get access to our presentation, and learn how to get the name of this ‘double agent’! The Rolls-Royce Holdings (LSE: RR) share price has surged higher since the company announced plans to raise £2bn by selling new shares.An optimist might say that the funding package — which will also include £3bn of new debt — means the company’s immediate future is safe. I agree with that. But the rights issue also highlights the scale of the problems facing the group.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…I think it’s important for shareholders and potential buyers to approach the rights issue correctly to avoid unnecessary losses. In this article I’ll explain what I’d do now and give my view on the long-term outlook for Rolls-Royce shares.Rights issue: buy, sell or hold?As I write, the shares are trading around 180p. Based on the rights issue share price of 32p, Rolls’ share price should fall to about 55p after the 6.4bn new rights are admitted to trading on 28 October.If you take up your full allowance in the rights issue, then you’ll buy your new shares at 32p and will not suffer any dilution in the rights issue.But if you own shares and do not want to invest any extra cash, I’d consider selling today and buying back after the rights issue. For example, if the share price falls to 60p after the rights issue, you’d be able to buy three times as many shares as you currently own. This would reduce the dilution you’ll suffer by not taking part.If you don’t already own Rolls-Royce shares, I wouldn’t buy any until after the rights issue. With no sign of a return to long-haul flying just yet, I think Rolls-Royce share price will remain weak for a while.Why I still think Rolls-Royce shares could be cheapRolls’ largest division is its civil aerospace business, which sells jet engines for widebody airliners — the kind used on long-haul flights. The problem is that these engines are sold at a loss. Profits are then made from years of after-sales service and support. With long-haul flying almost at a halt, revenue from servicing has also collapsed. Needless to say, no one is ordering new aircraft right now either.Rolls expects to report a cash loss of £4bn this year, despite laying off 5,000 workers and cutting spending. It’s a grim situation, but I don’t think the situation is quite as bad as it might seem.One reason for this is that Rolls has a 64% market share of engine orders for new wide-body jets. Although no one is buying these right now, the company’s big share of the market means that it should benefit immediately from any recovery in long-haul flying. I expect this to happen, probably during the second half of next year.The second reason why I think Rolls-Royce shares could be cheap after the rights issue is the value of the group’s defence business. This division generated an operating profit of £450m over the 12 months to 30 June. Revenue and new order levels are both ahead of last year.In my view, Rolls’ current valuation doesn’t reflect the value of its product portfolio. I can see some long-term value here, but I don’t expect a quick turnaround. I might consider buying Rolls-Royce shares in November, after the rights issue. For now, I’m staying on the sidelines. See all posts by Roland Headlast_img read more

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Six Suffolk Town Supervisors Re-elected

first_imgSign up for our COVID-19 newsletter to stay up-to-date on the latest coronavirus news throughout New York Ed RomaineTown of Brookhaven Supervisor Ed Romaine claimed victory Tuesday night with unofficial results giving the Republican a 25-percent advantage with nearly all districts reporting.Romaine, who was elected to the seat last year in a special election, walked on stage to raucous cheers from his Republican supporters inside The Emporium in Patchogue.Romaine thanked voters for “giving me a landslide victory for supervisor,” adding, “I am deeply humbled by it.”“We are going to change this town,” Romaine yelled to the crowd.Republican incumbents in Town of Smithtown, Patrick Vecchio and Sean Walter of the Town of Riverhead, were also re-elected, according to unofficial results.Democratic supervisors, Rick Schaffer of the Town of Babylon and Anna Throne-Holst of the Town of Smithtown, were also re-elected.Romaine was beating his Democratic challenger Vivian Viloria-Fisher 62 percent to 37 percent with all but four districts reporting.The Republican supervisor overcame strong criticism for his handling of a blizzard in early February that dumped more than 30 inches on parts of Suffolk County. Romaine was on vacation when the blizzard hit.Suffolk County Republican Committee Chairman John Jay LaValle predicted a big victory for Romaine before results started pouring in.“I expect Ed Romaine to get more than 60 percent of the vote tonight,” he told the Press. “He’s going to blow out his opponent.”“Obviously that was a tough start out of the gate,” LaValle said of the storm controversy. “But he’s a hard worker. Ed’s a guy that goes at it seven days a week.”Two other Suffolk democratic incumbents who ran unnoposed, Town of East Hampton Supervisor Larry Cantwell and Town of Shelter Island Supervisor James Dougherty, were both re-elected.last_img read more

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New NBA season could see superstars join bandwagon of kneeling athletes during national anthem

first_imgThe 2017-18 NBA regular season will tipoff on 17 October 2017. The tipoff is earlier than usual to enable a reduction in the number of back-to-back games teams are scheduled to play.One major issue which is sweeping across major sporting activities in the United States of America is athletes kneeling during the anthem, rather than stand, as it’s the usual norm globally, and that recent trend threatens to repeat itself when the multi-billion dollar NBA season gets underway.To cushion, address, whatever unpleasant surprises the superstar NBA players might have prepared-an extension of the NFL brouhaha, the NBA sent a memo to teams re-emphasizing that players and coaches must stand during the national anthem.The memo which was distributed by deputy commissioner Mark Tatum advises teams to allow the league office determine how best to deal with any possible instance in which a player, coach, or trainer does not stand for the anthem.Furthermore, the memo clearly instructs that individual teams do not have the discretion to waive the rule that players, coaches and staff stand for the anthem. The league has the discretion to discipline players who violate the rule. It is not clear if the league would exercise it in the event of any protest.The NBA suggested several ways teams could address the current political situation, which includes; a message of unity and how the individual teams are committed to bringing the community together this season, both players and coaches issuing a joint pregame address at their first home games, prepare a video tribute or public service announcement featuring team leadership speaking about the issues they care about.The latest reminder and precautionary steps by the NBA became necessary after NFL quarterback Colin Kaepernick began kneeling during the national anthem last season, as a means of protesting social and racial injustice and police brutality.In recent days, NBA stars LeBron James and Stephen Curry have taken to social media expressing their views on President Donald Trump. James described Mr Trump as a ‘bum’, while Curry ruled out accepting a traditional invitation to the White House with his Golden State Warriors championship winning team for a photo-op.Relatedlast_img read more

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