Interesting overview, thanks. I have also been impressed and surprised in equal measure at RR's performance in 2023. I am not a holder however. For me the negative equity and huge debt were a real barrier. Looking now, if the shares were to fall to the 200p mark, I would really consider buying, although I would need to do a lot more homework to fully convince myself that 2023 was not just a 'one off'!
The negative equity really doesn't bother me. Maybe I'm being naive, but to me, it just means that I would be wiped out as a shareholder if the company were to go bust or break banking covenants. But then, I expect to be pretty much wiped out if any company I own gets itself in trouble.
There are plenty of examples of companies restructuring and cancelling share structures, etc., to protect themselves, so I just see carrying that risk (of total loss) as the cost of holding the stock.
I am much more concerned about interest cover, cost of debt and cost of capital.
Interesting overview, thanks. I have also been impressed and surprised in equal measure at RR's performance in 2023. I am not a holder however. For me the negative equity and huge debt were a real barrier. Looking now, if the shares were to fall to the 200p mark, I would really consider buying, although I would need to do a lot more homework to fully convince myself that 2023 was not just a 'one off'!
As for 2023 being a one-off or not, I understand the risk, but I think the numbers can justify continued growth.
I'd be interested to know what further research you'd want to see, so I can hone my articles in the future!
The negative equity really doesn't bother me. Maybe I'm being naive, but to me, it just means that I would be wiped out as a shareholder if the company were to go bust or break banking covenants. But then, I expect to be pretty much wiped out if any company I own gets itself in trouble.
There are plenty of examples of companies restructuring and cancelling share structures, etc., to protect themselves, so I just see carrying that risk (of total loss) as the cost of holding the stock.
I am much more concerned about interest cover, cost of debt and cost of capital.