Will the Rolls-Royce share price recover in 2021?

first_img Zaven Boyrazian does not own shares in Rolls-Royce Holdings. 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. The aerospace sector is one of many to have been heavily disrupted by the pandemic and has consequently wreaked havoc on the Rolls-Royce (LSE:RR) share price. Why? Because the engineering company generates almost half its total revenue from the airline industry alone. And when most flights worldwide are grounded, all the income from selling and maintaining aircraft engines vanishes.But since its lowest point in October 2020, the Rolls-Royce share price has climbed almost 180%! Will it return to its pre-pandemic levels in 2021? And should I be considering the company as a value investment for my portfolio? Let’s take a look.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… 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. See all posts by Zaven Boyrazian Zaven Boyrazian | Tuesday, 2nd March, 2021 | More on: RR Enter Your Email Address Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge! Our 6 ‘Best Buys Now’ Shares Image source: Getty Images. 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. “This Stock Could Be Like Buying Amazon in 1997” 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. Will the Rolls-Royce share price recover in 2021? Why is the Rolls-Royce share price rising?There are two primary catalysts for the recent surge in the Rolls-Royce share price, as I see it. The first is a rescue package. In October, the firm announced it had successfully avoided disaster with £5bn of additional financing by issuing bonds and rights issues.The second seems to be some resemblance of normality returning to the aerospace sector. The UK government has recently laid out its plans to ease lockdown restrictions. Within the proposed roadmap, holiday travel is set to resume mid-May this year, just in time for the summer holiday season. While this is still a few months away, several airlines – including EasyJet and TUI – have reported a massive surge in flight and package holiday bookings.Needless to say, this is excellent news for Rolls-Royce, and so its share price has taken off. But is it a good value stock?A business in distressWhile the impact from Covid-19 has been devastating on the Rolls-Royce share price, the company was in trouble long before the pandemic hit.In four of the last six years, it has been losing a significant amount of money. This ultimately forced it to raise additional capital with debt throughout that period and severely damaged its financial health.Before Rolls-Royce raised the additional £5bn, the stock had nearly £8.8bn of debt on the balance sheet. By comparison, the market capitalisation of the entire company is only around £9bn. This means the total level of debt of this business is now greater than its market value. And a highly-leveraged, unprofitable business in distress is a serious red flag in my eyes.Value stock or value trap?The return of holiday travel is undoubtedly good news for the Rolls-Royce’s share price. And I think it’s likely to continue climbing provided that the UK government’s roadmap doesn’t get changed (which is entirely possible).But even if all performance expectations are met, I believe the business is still in lots of trouble. It was struggling to stay on top of its interest payments before the pandemic. And now it has another £5bn of debt to deal with. So personally, this is not a business I want to own. Given the challenges that lie ahead, the risk does not match the reward, in my eyes.last_img read more

LEFT JAB AND RIGHT JAB” JULY 16, 2019

first_img“LEFT JAB AND RIGHT JAB” “Right Jab And Left Jab” was created because we have two commenters that post on a daily basis either in our “IS IT TRUE” or “Readers Forum” columns concerning National or International issues.Joe Biden and Ronald Reagan’s comments are mostly about issues of national interest.  The majority of our “IS IT TRUE” columns are about local or state issues, so we have decided to give Mr. Biden and Mr. Reagan exclusive access to our newly created “LEFT JAB and RIGHT JAB”  column. They now have this post to exclusively discuss national or world issues that they feel passionate about.We shall be posting the “LEFT JAB” AND “RIGHT JAB” several times a week.  Oh, “Left Jab” is a liberal view and the “Right Jab is representative of the more conservative views. Also, any reader who would like to react to the written comments of the two gentlemen is free to do so. FOOTNOTE: Any comments posted in this column do not represent the views or opinions of the City-County Observer or our advertisers. FOOTNOTE: Any comments posted in this column do not represent the views or opinions of the City-County Observer or our advertisers.,“Right Jab And Left Jab” was created because we have two commenters that post on a daily basis either in our “IS IT TRUE” or “Readers Forum” columns concerning National or International issues.Joe Biden and Ronald Reagan’s comments are mostly about issues of national interest.  The majority of our “IS IT TRUE” columns are about local or state issues, so we have decided to give Mr. Biden and Mr. Reagan exclusive access to our newly created “LEFT JAB and RIGHT JAB”  column. They now have this post to exclusively discuss national or world issues that they feel passionate about.We shall be posting the “LEFT JAB” AND “RIGHT JAB” several times a week.  Oh, “Left Jab” is a liberal view and the “Right Jab is representative of the more conservative views. Also, any reader who would like to react to the written comments of the two gentlemen is free to do so.center_img FacebookTwitterCopy LinkEmailShare,“Right Jab And Left Jab” was created because we have two commenters that post on a daily basis either in our “IS IT TRUE” or “Readers Forum” columns concerning National or International issues.Joe Biden and Ronald Reagan’s comments are mostly about issues of national interest.  The majority of our “IS IT TRUE” columns are about local or state issues, so we have decided to give Mr. Biden and Mr. Reagan exclusive access to our newly created “LEFT JAB and RIGHT JAB”  column. They now have this post to exclusively discuss national or world issues that they feel passionate about.We shall be posting the “LEFT JAB” AND “RIGHT JAB” several times a week.  Oh, “Left Jab” is a liberal view and the “Right Jab is representative of the more conservative views. Also, any reader who would like to react to the written comments of the two gentlemen is free to do so. FOOTNOTE: Any comments posted in this column do not represent the views or opinions of the City-County Observer or our advertisers.,“Right Jab And Left Jab” was created because we have two commenters that post on a daily basis either in our “IS IT TRUE” or “Readers Forum” columns concerning National or International issues.Joe Biden and Ronald Reagan’s comments are mostly about issues of national interest.  The majority of our “IS IT TRUE” columns are about local or state issues, so we have decided to give Mr. Biden and Mr. Reagan exclusive access to our newly created “LEFT JAB and RIGHT JAB”  column. They now have this post to exclusively discuss national or world issues that they feel passionate about.We shall be posting the “LEFT JAB” AND “RIGHT JAB” several times a week.  Oh, “Left Jab” is a liberal view and the “Right Jab is representative of the more conservative views. Also, any reader who would like to react to the written comments of the two gentlemen is free to do so.,“Right Jab And Left Jab” was created because we have two commenters that post on a daily basis either in our “IS IT TRUE” or “Readers Forum” columns concerning National or International issues.Joe Biden and Ronald Reagan’s comments are mostly about issues of national interest.  The majority of our “IS IT TRUE” columns are about local or state issues, so we have decided to give Mr. Biden and Mr. Reagan exclusive access to our newly created “LEFT JAB and RIGHT JAB”  column. They now have this post to exclusively discuss national or world issues that they feel passionate about.We shall be posting the “LEFT JAB” AND “RIGHT JAB” several times a week.  Oh, “Left Jab” is a liberal view and the “Right Jab is representative of the more conservative views. Also, any reader who would like to react to the written comments of the two gentlemen is free to do so.last_img read more