Rolls-Royce shares are up 54% in a month! Here’s what I’d do with them today

first_imgSimply click below to discover how you can take advantage of this. After the Covid-19 pandemic spread across the globe in early 2020, airline traffic collapsed to a level unseen in the modern era. With governments closing their borders and imposing quarantines, airline miles flown dropped to near-zero. Even now, flight numbers are at roughly a quarter of their previous highs. This crash has devastated shares in Rolls-Royce Holdings (LSE: RR). What might lie ahead for Rolls-Royce shares?Rolls-Royce shares plunge to earthLess than 11 months ago — in a world before Covid-19 — Rolls-Royce shares were riding high. They hit a 52-week peak of 792p on 7 November, then slipped to end 2019 at 683.2p. Even as recently as 12 February, the stock closed at 699p. Then, as coronavirus worries spurred national lockdowns, Rolls-Royce went into a tailspin. Shares in the maker of engines and power systems collapsed to 251.6p by 3 April, driven down by relentless selling pressure.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…As the spread of coronavirus slowed going into the summer, Rolls-Royce shares staged a partial comeback. By 8 June, there were trading within a whisker of £4, a decent bounce-back, yet still just over half of their November peak. Alas, with Covid-19 infections surging into the autumn, the Rolls-Royce share price crashed again, bottoming out at 100.8p on 2 October.Rolls-Royce shares more than doubled this monthSince the start of this month, Rolls-Royce shares have been on a spectacular tear. On Friday, they closed at 243.7p, up a whopping 141.7% in just three weeks. This huge surge has propelled the esteemed engineering firm’s market value to £4.7bn. Nevertheless, Rolls-Royce stock has dived by two-thirds in the past 12 months, leaving the company a shadow of its former self.Any investors astute or lucky enough to buy Rolls-Royce shares around the turn of this month will be sitting pretty on some extremely healthy profits. But will these last, given the existential crisis faced by the airline industry?This FTSE 100 firm faces a tough futureOne problem for the UK’s leading engineer is that it was already stumbling before the shock of Covid-19. Indeed, in the far better economic circumstances of 2018 and 2019, the business lost £2.947bn and £891m respectively. What’s more, most of its profits come from long-term maintenance contracts linked to hourly jet-engine usage. With airlines on their knees, Rolls-Royce will struggle for years to come, with normal conditions unlikely to return before 2024.A warning from the bond marketWith its earnings crushed and dividends vanished, it’s impossible to value Rolls-Royce shares using conventional metrics. However, one red flag for shareholders comes from the bond market — which takes no prisoners and bosses even the biggest businesses about!On 14 October, Rolls-Royce issued £2bn of bonds, as part of a rescue fundraising that also included a rights issue for shareholders. The coupons (yearly interest rates) paid by these six/seven-year IOUs ranged from 4.625% to 5.75%. In 2017, the firm was able to borrow for six years at 0.875% a year. Today, similar high-yield (‘junk’) debt would be sold with an average coupon below 3.75%. Thus, ‘bond vigilantes’ — worried about Rolls-Royce’s future liquidity, solvency and survival — demanded steep returns to lend to the battered business.In short, with airlines facing powerful headwinds, I can see Rolls-Royce again returning to shareholders (and/or bondholders) for more emergency bailouts. With the business set to survive, but not thrive, if I held Rolls-Royce shares, I’d sell them today. As a shareholder, I’d head for the emergency exits while the going was good! 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. 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. Rolls-Royce shares are up 54% in a month! Here’s what I’d do with them today “This Stock Could Be Like Buying Amazon in 1997” See all posts by Cliff D’Arcy I’m sure you’ll agree that’s quite the statement from Motley Fool Co-Founder Tom Gardner.But since our US analyst team first recommended shares in this unique tech stock back in 2016, the value has soared.What’s more, we firmly believe there’s still plenty of upside in its future. In fact, even throughout the current coronavirus crisis, its performance has been beating Wall St expectations.And right now, we’re giving you a chance to discover exactly what has got our analysts all fired up about this niche industry phenomenon, in our FREE special report, A Top US Share From The Motley Fool.center_img Our 6 ‘Best Buys Now’ Shares Cliff D’Arcy | Sunday, 25th October, 2020 | More on: RR Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge! Enter Your Email Address Image source: Getty Images. Cliffdarcy 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.last_img read more

Student’s parent charged with sex trafficking, forced labor at Sarah Lawrence College

first_imgStephanie Keith/Getty Images(NEW YORK) — A 60-year-old man has been accused of targeting students at Sarah Lawrence College in Yonkers, New York, and subjecting them “to sexual and psychological manipulation and physical abuse,” according to an indictment released Tuesday.Lawrence Ray was charged with sex trafficking, extortion, forced labor and other offenses regarding his alleged criminal actions, some of which he went on with for nearly a decade, according to the indictment from federal prosecutors in Manhattan.He is believed to have laundered about $1 million from his victims, most of whom were teens and young adults that participated in so-called therapy sessions he put on to purportedly help with psychological problems, prosecutors said.Sarah Lawrence College did not immediately respond to ABC News’ request for comment.Ray’s alleged criminal activity started through the so-called therapy sessions, which he ran after he was released from a prison sentence for security fraud and moved into on-campus housing at the liberal arts school with his daughter and her roommates. The group eventually moved into a one-bedroom apartment on East 93rd Street on the Upper East Side of Manhattan.Ray presented himself as a father figure to the students and learned “intimate details about their private lives, vulnerabilities, and mental health struggles under the pretense of helping them” during the sessions, according to the indictment.Yet he then alienated them from their parents and convinced several that they were “broken” and “in need of fixing by Ray,” the indictment claimed.He also made up lies about them, and, when they denied it, would subject them to interrogations that included “sleep deprivation, psychological and sexual humiliation, verbal abuse, threats of physical violence, physical violence, and threats of criminal legal action” — actions that then garnered false confessions, according to the indictment.Ray videotaped the false confessions from at least seven victims and used them to extort money, unpaid labor and forced prostitution, according to the indictment.If the students couldn’t pay, the indictment claimed, Ray ordered them to drain hundreds of thousands of dollars out of their parents’ savings accounts, open lines of credit, engage in real estate fraud and in one case earn money through prostitution.He also allegedly took explicit photographs of some of the students.Ray was the subject of a lengthy 2019 profile in New York Magazine’s The Cut, which detailed his dealings with the Sarah Lawrence College students. The piece was titled “The Stolen Kids of Sarah Lawrence: What happened to the group of bright college students who fell under the sway of a classmate’s father?”Ray did not talk to the outlet about parts of his past because he said they were either “classified” or would “endanger other people.”He denied mostly all the accusations in The Cut article, but did admit to taking money from one of his alleged victims that she earned through escorting.“We know what is and is not. We know what’s truth and what’s wrong,” he told the outlet.It was not immediately clear if Ray had obtained legal representation.Copyright © 2020, ABC Audio. All rights reserved.last_img read more

Tesco ends ’hit and hope’

first_imgOn visiting Tesco’s inconspicuous HQ in Cheshunt, surrounded as it is by Hertfordshire suburban semis, the initial impression is that it’s a pretty understated setting for the brain-room of the retailer that accounts for one in every eight pounds that leaves our wallets.This changes the moment you enter the bustling foyer, where a hubbub of wheeling and dealing presumably masks the squeals of suppliers jamming their feet in the door. It’s here that I’m greeted by Simon Holt, Tesco’s genial but no-nonsense in-store bakery (ISB) buyer, who tells me that the ISB is on a roll, reporting some of the strongest numbers within food at Tesco. The multiple is upping its game in everything, from on-pack communication, skills training to, crucially, product launches. Henceforth, nothing will go on shelf until it’s a sure bet (BB, 25 Jan, pg 4). “In-store bakery is doing really well. For a long time in Tesco it hasn’t been,” admits Holt.The step-change came last year when Tesco gave the green light to a hefty training investment: all its bakers will be sent on a three-day bespoke course with the Campden and Chorleywood Food Research Association. “Customers tell us that in-store bakery is a real hero category and the business has already been supporting us with exciting plans for this year. One thing we’ve done is really engage our bakers, because I think they felt a little bit unloved. But over the last 12 months, we’ve communicated with them a lot more.”He says that, from now on, Tesco will look to make as much bread as possible from raw ingredients, although some of the more elaborate breads that require longer fermentation will continue to be bought in. This year Tesco will be looking at its methods of packaging to better communicate its in-store credentials – always a struggle in the ISB.”It’s my responsibility, or my product developers’ responsibility, to have the best products on the market,” says Holt. “If there’s a story attached to it we need to be telling customers that. People bang on about provenance, but my bread is made in front of our customers from the best flour we can get. You can’t get much more natural than that in terms of provenance.”Communicating that message is something we haven’t traditionally done that well, so communication will be a big project this year.” This is why Rolo-branded donuts and cookies have been two of the most successful launches in the last 12 months and the lines are already worth around £2 million each. They’re a good product and customers know the brand,” he says. “But I cannot communicate all the health benefits of a Finest Multigrain Farmhouse loaf due to a lack of space on pack. So selecting products that customers can understand very quickly is important.”== COMMUNICATION PROBLEM ==The difficulty in conveying marketing messages in-store is why products like Fairtrade haven’t touched the category, he adds. “If you look at Green & Black’s chocolate, they’ve got a lot of packaging to communicate that message. I could move all the chocolate in our cookies to Fairtrade but how do I communicate that? At the moment we’ve left that to the brands, but if it’s something the customer wants, we’ll always listen to them.” And that packaging is set to reduce even further, following a pledge to cut packaging by 25% this year.New in-store products need to offer real innovation – not just duplicate what works in, say, packaged morning goods. “Where is the customer rationale for launching brioches through the in-store bakery? Have you done your research and is it a growth area? That mentality of suppliers phoning buyers up saying ’I’ve got this great product, we think you could stock it’ just won’t wash any more.”While this approach may have worked when Holt was a Selfridges Food Hall buyer, at Tesco his focus is as much on the figures as the quality. “The main KPI at Selfridges was, ’What is the next big thing in food?’” he says, but dealing in enormous scales at Tesco means that making products more “relevant” to customers brings number-crunching to the fore: sales, profit, margin, waste, performance against the market and availability are the first things he looks for in a product – something suppliers should bear in mind.Holt insists suppliers must back up a proposition with a sales plan: how will the product be launched; will there be introductory offers; how will it be packaged; what is it going to look like on shelf; and will there be 100% availability all the time?Using market data such as Tesco Link – Tesco’s free-to-access sales information website – is essential. “If it’s not backed up with that information the likelihood of me launching it is very slim,” states Holt. “I’ve got a great supply base but suppliers need to focus on the customer. Many of them have historically thought that ’Tesco is the customer’. I want suppliers to think more about the end-user.”The aim this year will be to end the ’hit and hope’ approach of the past. One such example was flatbreads, which fell flat in the ISB last year. “Customers just didn’t understand why the ISB was selling flatbreads,” he recalls. “It was a good product, but it didn’t transfer to the shelf. We took them out within two months.”Put simply, he says, any new product has got to be better, simpler and cheaper: “Everything has to abide by those three simple principles.” —-=== CV ===Tesco ISB buyer for the past 18 months; Holt was previously a buyer of leeks, garlic, mushrooms, onions, swedes and turnips. Before that, he bought wet fish, smoked fish, meat and luxury goods for Selfridges Food HallPersonal approach: “What I’ve tried to do is have a level of honesty and integrity with my supply base. Sometimes you have to make difficult decisions but if you’re honest and there’s an element of trust you’re more likely to have a better relationship.”Pastimes: “We have a gym here, which is a great perk. I live in London so I like the theatre, films, concerts. I’ve got friends who work in music television, so I get invited to lots of gigs.”Holt’s new product checklist for suppliers:* It’s got to offer… great quality, great value for money, real innovation and be customer-focused* It must be…better, simpler, cheaper than what’s in the market*…and backed up with… a rationale based on customer data* Suppliers need to be… developing bespoke products for Tesco Express, smaller pack sizes and eat-on-the-go formats, such as its successful cheese twistlast_img read more

Asia stocks sink, Dow confirms bear market after US bans Europe travel on virus

first_imgTokyo’s benchmark Nikkei was down 5.42 percent or 1,051.88 points to 18,364.18, while the broader Topix was down 5.06 percent or 70.15 points to 1,314.97 in the hour after Trump’s address.Australia’s ASX was down 5.4 percent, while Hong Kong tumbled three percent at the open. Read also: To buy it or not: Retail investors are torn amid volatile stock marketThe news also sent the yen higher, with the safe haven currency gaining as uncertainty continues. The dollar fetched 103.63 yen by 0130 GMT, from 104.57 yen in early Asian trade. Stock markets tumbled Thursday after US President Donald Trump announced a 30-day ban on travel to the United States from Europe over the coronavirus.Asian markets were already a sea of red at the open, with traders taking their lead from a global rout as the World Health Organization declared the spread of the new virus was officially a pandemic.But Trump’s announcement of the 30-day ban, which excludes Britain, caused further selling, despite a series of measures intended to ease the financial pain of the outbreak, which has paralysed travel and hit businesses around the world. “Trump travel ban: sell, sell, sell is being heard across dealing rooms in Asia,” wrote Stephen Innes, global chief markets strategist at AxiCorp.”Travel restrictions equal slower global economic activity, so if you need any more coaxing to sell… after a massively negative signal from overnight trading in US markets, it just fell in your lap,” he added.The losses followed another brutal session on the US markets, with wave after wave of bad news, including Hilton withdrawing its earnings forecast and Boeing saying it would suspend most hiring and overtime pay.The coronavirus outbreak has left virtually no sector untouched, though travel and tourism have been particularly hard-hit as countries institute travel bans and quarantine requirements.’Markets crying out’The Dow Jones Industrial Index plunged around 1,465 points, or 5.9 percent, to 23,553.22 on Wednesday, in a bruising session that left the index more than 20 percent below its peak, making it a bear market.Leading stock markets in Europe also retreated, including the FTSE 100 which dropped 1.4 percent despite the Bank of England slashing its key interest rate to a record low and the government pledging $39 billion of fiscal stimulus.Analysts said markets were struggling under the weight of twin crises: the burgeoning coronavirus outbreak and an oil price war.Read also: Disappearing act: Market braces for volatile March after $2.4b vanishes in a weekOil prices also fell sharply after Trump’s comments, plunging more than five percent.The oil market was already under pressure after Saudi Arabia and Gulf partner UAE stepped up a price war with plans to flood the global markets.The move is the latest escalation of a fight among oil producers after Russia balked at an OPEC-backed plan to cut production in response to lost demand from the coronavirus.”The virus itself continues to spread in Europe and the US, meaning more extensive containment measures are likely, which will weigh further on global growth,” said Tapas Strickland, senior analyst at National Australia Bank.”Markets are crying out for a co-ordinated response to COVID-19 headwinds and a lack of concrete US policy action is rattling markets,” he said.Trump’s address included several measures intended to ease the financial burden particularly for small business, including payroll tax relief and deferred tax payments.But the measures did not appear to be enough to convince investors, though Innes said the stepped up US action could herald “an avalanche of global fiscal action across the board” that might cheer markets eventually.Topics :last_img read more