Rolls Royce (est 1904.) are best known for their participation in the Automotive and Aviation industrys. They produce most notably, road vehicles worldwide and plane engines/turbines for the Aviation industry.
Why buy now?
This is a UK stock, and UK stocks have been weathered down hard by Covid-era market recession. Many or most of them have STILL to make a full recovery to at least pre-Covid levels, but are companies with secure positions in terms of brand power and long term prospects. Therefore, this is an excellent opportunity to buy into a century-old company with proven market share at a heavy discount still.
Whats the catalyst? Is there any news? Why should I invest into traditional engines versus new age EV?
Here's a quick read on the kind of products RR are looking to push into the aviation space soon. ( I'm not Pro, so cant post links. Sorry! )
"Rolls-Royce confirmed today that it has started to build the demonstrator engine for its upcoming ‘UltraFan‘ family. This will be the world’s largest aircraft engine, with the fan measuring 140 inches (3.5 m) wide" "The news comes just over two months after Rolls-Royce announced that it had completed the first engine run on its new £90 million ($125 million) testbed. Known as Testbed 80, this is the largest facility of its kind in the world. Once the UltraFan demonstrator is complete, Rolls-Royce will run data-driven tests of the engine on this facility."
They are about to release a developed version of the newest, largest aircraft engine in the world, with a renewed focus on efficiency. Reading through multiple sources and interviews around this subject, you can find that most people tend to agree on the same thing - whilst EV power is undoubtedly the future, you can't cross the Atlantic on a battery. Large power engines (shipping, flight) will be some of the last pieces of the puzzle to move to EV. in the mean time, new-generation energy-efficient breakthrough engines will almost certainly be the future as airlines look to cut costs over the next 10-20 years.
This market looks dead!
Its up to you whether or not you can read the strength out of this chart - note the large alerts around the volume in the different years in this chart. You can see one thing clearly - even with the 2008 crash put in, there has not been this much purchasing volume involved in RR since 2003. That screams of a long term bottom being in for now.
My advice? Pick it up and hold till 2025 to see the maximum gains over time. Think long term, Then even longer!
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