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What’s the “Nuclear Miracle” to “Terrify China?” — $1 Stock with “Unimaginable New Tech” teased by Rahemtulla?

Latest Monument Traders ad says "Its Brand-New Nuclear Technology Is Set to Revolutionize the Power Industry" ... and that the company is also "at the center of" next-gen aircraft that "should Terrify China."

An earlier version of this tease was covered on March 30, 2022 and updated a bit in July. That one focused on this being the “Last Great Value Stock” at $2 (or later, $1). The ad was updated with a promised “catalyst” every couple months, generally around earnings release dates, and now the same stock is being pitched as a “Nuclear Miracle” and has had a good year. I’ve updated the Quick Take above with the new analyst estimates, but the balance of this article was last updated on March 2, 2023.

Karim Rahemtulla is pitching a service called Trade of the Day Plus ($79/yr) for Monument Traders Alliance, which seems to be a pretty active trading service that’s helmed by Rahemtulla and Bryan Bottarelli, both of whom have been around the newsletter world for a long time, with various stock and option trading services (Rahemtulla says he’s made about 200 trades in three years for this service, with the average trade lasting 50 days and nearly 90% of the trades being winners, though I don’t have any verification of that — he’s been pitching this same stock for about a year now, so I guess this doesn’t fall into his “average” trading pattern).

Here’s what the last version of this teaser ad said:

“The Last Great Value Stock

“A Shocking Announcement in December Could Send One Stock (It’s Under $2!) Rocketing Higher…

“Yet Even if This Stock Traded for $50 Tomorrow… It Would STILL BE CHEAP!”

The latest version, though, shakes up the premise of the ad entirely — leveraging the reinvigorated nuclear energy industry post-Ukraine to pitch this as a “Nuclear Miracle” stock, here’s the lead-in now:

“The Nuclear Miracle

“$1 Stock Develops Unimaginable New Tech…

✓ Powers 1 Million Homes
✓ 10 Times Smaller
✓ Less Expensive
✓ $5 Billion in Annual Revenue”

It plays off of some of the recent enthusiasm about nuclear fusion reactors, too… though notes, of course, that fusion is a long way off — here’s a bit more from Rahemtulla:

“Fusion, while exciting, is decades away from producing commercial energy… if it ever will….

“But here’s the thing…

“There has been a nuclear breakthrough.

“It’s a miracle, really.

“And it is already commercially viable – it’s on track to start producing huge amounts of revenue NOW for a $1 stock you HAVE likely heard of.

“This company is name-brand.

“You would know it instantly if I told you its name.

“And yet… the media completely ignored their own “nuclear miracle”…

“… this company is about to reward investors in a way I haven’t seen in 30 years.

“I believe this $1 stock could go to $25… perhaps even $50… in just a few years.”

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What else do we learn about this “nuclear miracle?” Here’s a bit…

“Their technology can power 1 million homes… at one-tenth the size of a traditional plant….

“The company signed a deal with the United Kingdom that is expected to generate $5 billion per year and create 40,000 jobs.

“And yet, you can own this stock for just $1 today.”

Rahemtulla has been saying all year that we’re at an “inflection point” when the “real economy” stocks start to take over from the “virtual economy” stocks, essentially similar to many people who have said they see the pivot from “growth” to “value.” Here’s a little taste of the ad, getting to the big picture argument (this part is the same as it was a year ago):

“You see, we are experiencing a new fundamental shift in the global economy right now.

“I call these shifts ‘inflection points.’

“They are moments where money flows out of one sector and into another.

“And inflection points in the market are generally the single best times to make money.

“At the Beginning of the Pandemic, Money Flowed Into Virtual Economy Stocks…..

“But now something is changing once again.

“We’ve hit a new inflection point.

“And you need to be aware of it right away… or you might miss out on the next big profit opportunities.

“In short, money is flowing out of those virtual-based pandemic stocks… and back into the stocks that operate in the physical world.

“Now… Money Is Flowing Back Into Stocks That Drive the Physical Economy”

And he says that the company is in a “reversal” when it’s becoming profitable, swinging from red to black after a tough slog… here are those clues:

“Operating income just swung from a $2.7 billion loss back to a more than $700 million profit.

“The 15 analysts covering the stock are predicting it will triple in the year ahead… with the high prediction coming in at more than 5X.

“But with a backlog of $61 billion in sales coming in… I believe the profit opportunity here is even bigger.

“That’s more than six times the company’s current value.”

We should note, last year Rahemtulla was teasing this company as having $75 billion in backlog… which makes $61 billion look a little less impressive. But yes, hiding in that clue is the fact that this company has a value in the $10 billion neighborhood.

And, of course, he’s also still calling it the best “value stock” …

“At this moment, this $1 stock truly is the single best value investment I’ve ever seen in the markets.”

(That number has fluctuated over the past year or so — it started as “$2 stock” but it spent most of the year below $1, so in January he flipped over to saying it was a $1 stock… though it’s back above that level again now).

And the big news he saw coming:

“There is a major catalyst… an announcement coming in May… that I believe is going to make this one of the most sought-after stocks in the world.”

Don’t know why he didn’t say “February,” since that was when the actual catalyst hit and drove the stock higher, for the first time in years — gosh, perhaps he’s just making up those dates to create artificial deadlines? Ads without deadlines, any marketer would tell you, do not work as well. We need some urgency to get us to pull out our credit cards.

But we won’t spoil the surprise yet…

The low share price ($1 or $2) almost certainly means we’re not dealing with a US-listed company — companies that are listed on the NYSE or NASDAQ tend to try to avoid having their share price fall below $5, which in some cases triggers delisting warnings and always gives US investors less confidence, but major exchanges outside the US are not as finicky about per-share prices, so very large companies often trade at what we would think of as “penny stock” prices.

What else do we learn about this secret stock? Well, he confirms that “not US” bit…

“The company also trades in an unusual way.

“You won’t find it on the Nasdaq or New York Stock Exchange. (And it’s not a penny stock on the pink sheets, either.)

“Rather, it trades on a special exchange you might not be familiar with.

“I’ll explain how I can help you get in on it in a moment.”

And then Rahemtulla keeps pouring on the clues, so this shouldn’t be too tough for the Thinkolator…

“this company is an engineering powerhouse.

“It builds, supplies and services world-class engines and power systems that make our entire global economy go.

“They’re working on a nearly $5 billion-per-year project to build nuclear reactors for the United Kingdom.

“They make jet engines for the Airbus A330, 340, 350 and 380… plus the Boeing 777 and 787 Dreamliner.

“They have a $2.6 billion deal to supply 650 F130 jet engines to the United States Air Force.”

And he throws more clues on the pile, too, they’re working on battery containers, new methanol engines for shipping, selling super-engines for yachts and fishing boats, building quieter trains and an all-electric plane… lots of stuff in the hopper. Even some things that touch on pretty high-hype areas of the market recently:

“It is working on giant electric passenger drones that may replace helicopters. These things can go 200 mph and are set to be released in 2024.”

And I don’t want to make you wet your pants with excitement, but he does throw in a Tesla reference, too…

“What’s really exciting about this company is that while it is bringing in billions through its engineering and manufacturing businesses…

“It is also developing futuristic technologies that give it massive growth potential.

“The company is a leader in new machine learning and artificial intelligence technologies that make the entire global economy run more efficiently.

“This company is like Tesla on steroids!”

Not content to throw in that “Tesla on steroids” tease, he also makes a connection to Netflix, another well-known growth darling…

“This Company Has Turned the Airline Industry Into a Netflix Model

“Most engine manufacturers, like, say, Lockheed Martin, operated with a static business model in the past.

“They built engines and sold them for a price, and that was that.

“This company changed that….

“The $1 stock I’m telling you about charges an hourly fee for this service on its engines… creating a Netflix-like recurring revenue stream.

“The Royal Aeronautical Society called it an ‘aftermarket revolution’ that created a ‘radical change’ within the industry.”

Rahemtulla also teases at the reasons why this company should grow…

“… air traffic collapsed in 2020… and it has rebounded tenfold since.

“If you’ve been to an airport lately, you know that they are absolutely jammed with passengers. The skies are filled with planes.

“That’s one of the reasons this $1 stock could suddenly be so profitable again.

“As air traffic comes back online, the company is raking in billions of dollars…”

And one final clue for you about that May “catalyst”…

“The company has a big announcement coming up… one that I believe is going to send the stock soaring dramatically.

“It’s the company’s half-year results event in May.

“On that day, the CEO traditionally breaks down all the positive developments for the company.

“I’m predicting that everything I’ve talked about will become widely known by the general public… And when that happens, we could see a big, big move.”

The “half-year results” event is similar to our regular quarterly updates in the US, though it’s a UK convention to report formal results just twice a year (with “trading updates” for the other quarters). And, yes, this secret company generally a report each May… though, just one more reminder, Rahemtulla made this same “it’s going to be a shockingly great surprise” prediction about the past three or four reports, and the stock has continued to decline following those updates in the past year or so, before turning on a February catalyst that he didn’t actually predict. Maybe it turns higher again in May, maybe not, but these long-running teaser ads that keep updating their catalyst (“maybe THIS time it will really get exciting… no, it will be THIS time… wait, I mean THIS time”) get into a little bit of the “boy who cried wolf” vibe.

And actually, they got a little lazy with the “catalyst” wording in this particular version of the ad — what will be coming on May 11, 2023 is actually the “Annual General Meeting and Trading Update” (in the US it would be the “Annual Shareholders Meeting”).

And a final note about how this is a super-secret kind of stock that you have to pay an expert to handle properly…

“While this company is one of the 50 most admired in the world, it does not trade on the usual stock exchanges like the Nasdaq or the NYSE.

“Rather, it trades on a special exchange that most regular investors might not know how to access.

“Only real trading pros know how to get in on this company. And that gives people like me (and my followers) a real advantage.”

OK, so that’s pretty much hooey. We are all quite capable of looking up financial information about a stock that’s not listed in the US, and of figuring out how to carefully buy OTC-traded shares.

More on that in a minute… but first, our answer from the Thinkolator…

No changes there — the Thinkolator is still sending us straight to Rolls-Royce Holdings (RR.L in London, RYCEF OTC in the US, RYCEY for the US OTC ADR) — the aviation engine company, not the luxury carmaker (the two have a shared history, and a shared corporate logo in the overlapping R’s, but the businesses are entirely separate today).

Rolls-Royce has the potential to again be a strong company, and it’s reasonable to assess it as a “value” stock… but the last couple years have been generally disappointing, with the recovery in air travel still not what was hoped for (especially in China). That just started to change in the past few months as China’s COVID lockdowns ended, finally, and that, combined with new leadership sending a new message, really helped the stock pop after their February 24 announcement and presentation about their preliminary 2022 results.

Rolls-Royce is really still in a turnaround effort that has been underway, in fits and starts, for about eight years. They have had a bad decade, starting with an inquiry that found signs of serious bribery and corruption as the company grew rapidly in its first 10-20 years after being re-privatized (that was effectively settled in 2017), leading into troubles with the Trent 1000 engine design for the first Boeing Dreamliners that hit the company with almost $3 billion in charges, and, just as they were beginning to rebuild from those troubles, the COVID pandemic came along to decimate commercial air travel. They lost their investment-grade credit rating during COVID, and have sold off a number of divisions and businesses over the past two years to raise cash and clean up their balance sheet, and, though they have had a series of order wins from the US military, and generated some positive news about their efforts to move forward with small modular nuclear reactors and with their progress on electric airplane engines (commercial aviation, defense, and power systems are their three meaningful divisions, in that order), their ongoing service and parts businesses mean that they’re still very much levered to the recovery of commercial aerospace worldwide. Getting back to a full schedule of commercial air travel around the world is the main driver of results.

And though that’s recovering, we’re still not caught up to where we were in 2019… and because of the pandemic, Rolls-Royce had to sell three billion new shares at a steep discount in late 2020 just to stay alive, so the recovery is not necessarily going to be reflected instantly in the share price. Their net income will recover to 2019 levels a long time before their net income per share will recover.

It is pretty objectively crazy to say that the stock would be a bargain at $25 or $50 per share, as the ads imply, because there are now more than eight billion shares outstanding — that would be a $200-400+ billion valuation, for an industrial company whose revenue peaked at about $23 billion a year, almost a decade ago, and currently is on a roughly $15 billion revenue pace. $50 would mean paying almost 20X revenues for a company in the midst of a long-term restructuring and turnaround process that had a peak valuation, during the stronger growth years (2007, 2013-2014), at about 4-5X revenues. $1 or even $2 may turn out to be a great value in the end, if the business really gets some momentum behind their recovery over the next few years, but $25 or $50 is crazypants.

So what happened last week? Rolls-Royce did got investors excited with a strong bounceback in cash flow, largely driven by recovery in Chinese travel, which is what RR has really been waiting for… and they also got some new messaging from the top.

London analysts had long guessed that they’d earn about 4p in profits per share in 2022, but then had to push that optimism out to 2023 a few quarters ago, so that’s still the “profit per share” bogey they’re chasing, and they’re not at that level of earnings yet… but the return to profitability seems more “real” now after a good end to 2022. They ended up outshining their own guidance and blowing past analyst estimates, with revenue up about 15% and profits up 57% (from a low level, but still impressive), and they had told us last year to expect “modestly positive” cash flow, but ended up surprising with a strong £505 million in free cash flow (and told investors to expect “as much as £800 million” this year). It’s a big company, and some of the benefit comes from a lower Pound, but that’s still surprisingly decent, and it means they’re now valued at about 25X trailing free cash flow, or about 18X that forward estimate.

To a large degree, the good news this month sounded like the first bit of recovery after the new CEO had given the company a wakeup call about their historical underperformance.

Rahemtulla really highlights the nuclear power part of Rolls-Royce’s business, and that might become significant, but it’s also still up in the air — they have the designs and the team in place to build a new fleet of modular small reactors in the UK, with a lot of preliminary work done and what seems like an informal arrangement with the government… but they do not yet have an order from the government to roll out those new reactors (and though they’re confident they’ll get one, they’re not so confident that they’re building on spec).

The stock reacted very strongly last week to the surprise 2022 profit and the optimism about this year, but that could be short-lived if they fail to follow through — there’s not a lot of investor trust in Rolls-Royce after years of underperformance. Right now the shares trade at about 35X the average expected (by analysts) 2023 earnings, or 22X 2024 earnings, but there is a wide range of estimates underlying those averages… and for the foreseeable future, the big economic drivers will be whatever cost management the new CEO can bring and how the continuing recovery of airline travel in China progresses, though it might be that some firm orders for their small nuclear reactors could give a headline boost (that’s a longer-term story, the first one wouldn’t likely be commissioned until 2029).

So we can look for that expected order for the first small nuclear reactors, which do indeed sound impressive, and we can look for new design wins in commercial and defense jet engines, but right now 45% of the revenue comes from commercial aerospace, which includes both selling engines for new planes (35% of aerospace revenue) and the much higher-margin work of continually servicing those jet engines (65%… “engine flying hour recovery” is what primarily led to the surprise in free cash flow late last year). Their forecasts for growing that free cash flow this year depend on large-engine flying hours getting back to 80-90% of pre-COVID levels, which basically means “commercial airline flights get back to 2019 levels” — and they very well might, though at this point that story is probably less about China’s re-opening and the return of Chinese tourism than it is about the economy (China seems to be thoroughly back now, so it feels OK to bake that in… but if we get a global recession, of course, airline travel slows).

For the first half of 2022, for some context, commercial Rolls Royce engines flew about 60% of the hours they flew in 2019… and as of the August update, that number was still only up to about 65% of pre-pandemic levels, though they see that recovery being pretty linear from here.

Last year we learned that Warren East, the CEO who has overseen the restructuring of the company (he took over in 2015), would leaving at the end of 2022, to be replaced by Tufan Erginbilgic. It may be that his job in rescuing Rolls-Royce from the COVID crash is done (he said at the announcement that the company was at an “intersection point” and it was the right time to leave), and that the company is back on more solid footing now after shedding lots of businesses and “right sizing” the company with something like 10,000 job losses in recent years, but that’s not at all obvious in the numbers yet. Which is why it’s a “value” stock, and why the company has gone from a $70 billion enterprise value three years ago (that’s just net debt plus market capitalization), to a $17 billion enterprise value today (it was about $16 billion when the first version of Rahemtulla’s ad ran, almost exactly a year ago).

The opportunity? It’s likely that they will recover some of their former glory as commercial aviation returns to growth… this was a $100 billion company at its peak in 2014, and still a $50 billion company in 2019, and though some of their revenue-generating businesses have been sold as they’ve restructured and paid down debt, much of that shrinkage in revenue from 2020 and 2021 could come roaring back when more planes are flying. On the other hand, the return to real profitability might not be fast — it’s true that companies tend to do well at inflection points, when they get through a bad patch and begin to grow again, particularly if investors suddenly decide en masse to trust a stock once more, so maybe that is beginning to happen after last week’s update… but it’s tough to guess at the timing, there may well be fits and starts along the way.

I’d say the odds are pretty good that Rolls-Royce is starting to generate positive momentum again, after eking out a small profit last year and promising that they will generate free cash flow this year, and that engine maintenance business should, by all rights, again become a strong and steady cash flow-generating business that we can rely on in the future, even if the Rolls-Royce engines that happened to be on the ground in Russia at the time of the Ukraine invasion are effectively lost to them.

Rolls-Royce is certainly one of the more powerful brands in the world, and they are one of the leaders in aerospace engines (second only to General Electric, when it comes to commercial airliners). That business has its roots in wartime, as Henry Royce designed plane engines for the UK to help with the war effort (World War I, that was), and Rolls-Royce has made good inroads in the defense and power generation businesses to diversify away from commercial airliners a little bit in recent years (not just nuclear reactors, they also, like GE, make a lot of turbines for conventional power plants), so it could be that the increasingly bellicose sentiment in Europe will also lead to further growth for the company, though talk of increased defense spending tends to be slow in bubbling through to revenue for defense contractors.

Still, commercial aerospace is the big question mark. And it has always been so — challenges with one of their jet engine programs back in the 1970s led to bankruptcy, and effectively a takeover by the British government, which led to the company spinning off the iconic automobile brand in 1973 (Rolls-Royce Motor Cars are produced by BMW these days, under an old agreement with Volkswagen, which owns Bentley), and eventually re-privatization under Thatcher in the late 1980s, and that is pretty closely mirrored by the expensive challenges they’ve had in fixing the Trent 1000 engine design in recent years, though they were well into that recovery in 2020… and then airplane orders disappeared, and commercial aviation ground to a halt for a while. The real core of profitability right now is all those Trend engines that power a couple thousand Airbus A330 and A350 planes around the world, and that will be in service and get steadily replaced and refurbished for (probably) decades, though they do need ongoing design “wins” in new aircraft to keep that number growing.

Rolls-Royce did innovate the service contract in the jet engine business, as Rahemtulla teases when he says that they used the Netflix model, turning that from a manufacturing business into a lifecycle business as customers paid them for maintenance based on the number of hours flown, and that’s generally a great business except when global air travel stops for a few months — but that innovation is no longer new or unique. The transformation of the business really came about 20 years ago, and as I understand it that’s how GE and everyone else also does it now, so it’s not really a differentiator for Rolls-Royce today. It should provide steady cash flow in future years, and Rolls Royce is intending to use that cash flow to fund its investments in the “green” economy of the future, with new electric aircraft engine technology as well as little modular nuclear reactors.

Analysts have not yet been fully convinced that the turnaround at Rolls-Royce is nigh… but they’re getting there, several analysts flipped from “hold” to “buy” last week (the average rating over in London is still “hold”). The 2022 earnings came in at 1.9 pence per share, 3X higher than recently expected but still half of what had been expected a year ago, and the current estimate is that they’ll earn about 4.3 pence per share in 2023 and 6.7 pence in 2024. They’re forbidden from paying a dividend for another year or so, because of their debt agreements, so you don’t get paid to wait for the turnaround, but they have been reducing their debt pretty meaningfully, so that’s good (they’ve done so mostly by selling off non-core businesses).

When it comes to the companies that are probably the most reasonable comparisons in the jet engine market, the valuation has swung from cheap to average in the past few weeks — they now trade at about the same forward multiple (on 2024 earnings estimates) as General Electric (GE) or Safran (SAFRY), and those competitors are more diversified than RR, and likely to be less levered to the pace of commercial aerospace recovery. GE and Rolls-Royce have huge market share in the largest planes, and that’s not likely to change quickly, but there’s also much more competition when you get into single-aisle jets and smaller regional airplanes.

I still find this one interesting — it’s a way to get exposure to the recovery in commercial air travel, as more engine-hours are flown and Rolls-Royce earns more on their service contracts (and, eventually, as sales of new aircraft pick up), but the company has also been getting stronger on the defense side, with some meaningful contracts in both the US and Europe in recent years, which means they’ll likely be bolstered somewhat by rising defense spending in NATO countries in the wake of Russia’s invasion of Ukraine (though those major military aviation programs are extremely long-term in nature, that will be more of a boost three or four years from now than it is in 2023).

I’m also impressed with their initial efforts to build out modular nuclear reactors in the UK as part of Europe’s work on reducing carbon emissions… which itself will probably be boosted, if other countries get on board, by the desire to reduce reliance on Russia’s natural gas pipelines (that’s less of an issue for the UK than it is for Germany, the UK produces half the natural gas it needs from the North Sea and gets a lot of the rest from Norway, but to at least some degree it’s an issue for everyone on the continent right now). But again, that’s not going to be a 2022 or 2023 impact on the income statement, though it could always become a big part of the “story” driving the shares. Maybe France’s attempt to get other European countries on board with a new nuclear power alliance will help, though even in the wake of the Ukraine invasion there’s some meaningful resistance to nuclear energy.

Here’s what I said about Rolls Royce last Fall:

“Their maintenance and service business should effectively be an annuity business based on the number of hours flown on their engines, and it should be the jewel of their profitability… so the next real surprise to earnings will probably come whenever that grows fast enough to overcome their other challenges and their efforts to jettison unprofitable divisions and pay down debt. Maybe that’s in December, as the new CEO tries to put his stamp on the business, maybe it’s a few years away, after seven or eight years of “restructuring” it’s hard to be super-confident about any particular timeframe.”

Turns out, “February” was the answer for when things start to look good again. We’ll see if it sticks.

And is there any secret to buying this stock? Not really. The short answer is, if you want to buy, buy in London if your broker lets you trade on the London Stock Exchange, buy the US ADR (RYCEY) if you can’t trade in London.

Long answer? Rolls-Royce has its primary listing on the London Stock Exchange, where it trades in pence (as I’m typing, the current price of £1.47 translates to US$1.76… so the stock has had a strong move, a few months ago it was trading at £.80/$0.94). The company has a sponsored ADR program in the US, with shares on deposit with JP Morgan that trade in the over-the-counter market at RYCEY, and there’s also an unsponsored OTC ticker at RYCEF that some brokers use when effectively buying shares for you in London and allocating them to your account and bypassing that sponsored ADR.

When in doubt, it’s usually best to trade where there is the most volume, because that’s where you’re likely to get the fairest price — and also where it will probably be easiest to sell at a fair price in the future, should you want or need to sell in a hurry (buying illiquid stocks is a LOT easier than selling illiquid stocks, as a general rule). That would be London, of course, where the primary trading takes place and where the fair price is really set, and it’s easier than ever to trade directly on major foreign exchanges using services like Interactive Brokers, but the sponsored ADR (RYCEY) also generally trades well over a million shares a day and should track very closely to the fair London price.

How do costs differ for this kind of trading? Since it’s a sponsored ADR, not just an OTC symbol representing shares on an overseas market, you will likely see an annual fee from J.P. Morgan in your account (they’re the manager of that ADR program), but you probably won’t pay an extra fee or enlarged commission from your broker. All brokers differ on what they charge, and why — but Fidelity, for example, charges an extra $50 foreign settlement fee for OTC trades of foreign shares like RYCEF, so that will hit with each buy or sell, while sponsored ADRs like RYCEY require only whatever a standard stock trading commission is for a Fidelity account. J.P. Morgan’s annual ADR maintenance fee, which is deducted automatically by your broker in much the same way that a dividend is paid to your account automatically, was two cents per share in 2021 and 2022 (it was one cent in 2020), and that’s huge for a $1-2 stock… so if you own more than a couple thousand shares, the ADR fees could be a larger bite than commissions for trading directly in London… though the ADR fee for RYCEY could still be preferable to taking the liquidity risk of RYCEF.

If you’re interested in buying the ADRs in the US (that stands for American Depositary Receipt, by the way), you can improve your odds of getting an order filled at a fair price by trading London-listed stocks during the first couple hours of the trading day, when both NY and London are open, and it’s best to always use limit orders for OTC stocks, even ADRs… if you want to buy Rolls-Royce immediately, just look to see what the current price is in London (at RR.L), do your currency translation (I use xe.com, but you can also just type “1.47 pounds to dollars” in Google and you’ll get a good instant response), and place a limit buy order at something close to that “live” price, whatever level seems fair to you. It can be a hair more complicated than just buying a US-listed company, but when you’re dealing with big companies and liquid stocks like Rolls-Royce, it’s really not particularly challenging or secret — you don’t need me (or Karim Rahemtulla) to tell you how to buy or sell shares of a large multinational company just because it happens to trade with an OTC symbol instead of a listing on the NY Stock Exchange, the biggest difference for most people is that the ticker has five letters instead of three or four.

And Rahemtulla had some “bonus” reports to tease in his ad, too — I covered one of those last year here, if you’re interested (that was about Blink Charging, which he was calling his “Favorite Small Cap Play for 2022”, the shares are down aboyt 60% over the past year. That special report remains, from the clues he drops it’s clear that he’s now teasing Blink as his Favorite Small Cap Play for 2023,” though I haven’t looked further into that company more recently.

So what do you think? See hope continuing to build for Rolls-Royce with new management and the recovery in air travel? Have other favorite plays for the recovery of commercial air travel or the rise in defense spending? Our happy little comment box awaits below… and don’t worry, we don’t bite.

P.S. We haven’t heard much feedback from readers about Rahemtulla and Bottarelli’s Trade of the Day Plus service, so if you’ve ever tried it out please do visit our Reviews page here and let your fellow investors know what the experience was like. Thank you!

Disclosure: I don’t own any of the companies mentioned above, and will not trade in any covered stock for at least three days after publication, per Stock Gumshoe’s trading rules.

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Carl M. Welch
Member
Carl M. Welch
March 2, 2023 12:42 pm

The nuclear part of this pitch is crap. We already have small modular reactors. They are in Navy ships and submarines. Who makes those? And why aren’t we using them?

👍 21808
timcoahran
Irregular
March 2, 2023 6:42 pm
Reply to  Carl M. Welch

If i understand correctly – which is not at all certain – the Naval reactors get refueled periodically, like the terrestrial ones. Then the waste is transported to Hanford.

Separately, there is talk of sealed units which would never be refueled (and maybe abandoned in place when they’re spent?). There are some specific locations in Alaska that want one of these, including a large government facility near me. I don’t know which manufacturer they’re looking at…

👍 469
Michael Hullevad
March 3, 2023 4:34 am
Reply to  timcoahran

Toshiba, their small models could fit in a 20 foot container!

dowdylama
Irregular
dowdylama
March 2, 2023 12:47 pm

As I have posted previously:
Without governmental legislation/subsidies and/or utility subsidies, I simply do not see a way for EV charging stocks to be profitable.

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dowdylama
Irregular
dowdylama
March 2, 2023 8:13 pm

Of course, you are correct Travis.
But, making investments purely upon the *hope* 0f favorable subsidies and/or legislation has never made sense to me.

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Skidancin1@gmail.com
Member
Skidancin1@gmail.com
March 14, 2023 3:34 am
Reply to  dowdylama

Yet subsidies may be a likelihood more than just a faint hope. I wish it weren’t so.

geobigfla
Irregular
geobigfla
March 2, 2023 12:51 pm

Seeing Rahim’s multiple push of RYCEY, I bought at .98. It’s now $1.72, so so far it’s looking good. Too many business opportunities in their future for me not to take the leap.

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Craig Swartz
Member
Craig Swartz
March 2, 2023 1:45 pm

First interested in RYCEF in July, due to your article then.
Didn’t get around to buying it till November.
Now, I see it’s UP 65% . THANKS!
Since K. R. is still hyping it, I’ll keep holding it.

As to the lower liquidity of RYCEF vs RYCEY vs RR.L, I don’t quite get why this is a big deal. If RYCEF is underpriced vs RR.L, any large scale institutional trading firm could, should, & would BUY RYCEF, and SELL SHORT RR.L.

The potential to profit from this type of arbitrage trade doesn’t depend on the underlying stock, only the pricing discrepancy.
AND, it effectively keeps the relative share prices from diverging much.

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Rick
Member
March 2, 2023 2:53 pm

Travis, while things might seem “crazypants,” Tesla was crazypants. I need to look into RR to see about these nuclear power plants and how they may differ from other current options. AND, given its valuation, I don’t think jet engine manufacturing will
go to the moon. I day trade gold e-mini futures, and my chart says that given the bleep up, the stock will fall but not below the $1.30-#1.40 area. LOL

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Retired Brit.
Member
Retired Brit.
March 2, 2023 4:49 pm

Bought some RR shares back in May when I returned to investing. Bought them on etoro in dollars but no idea why as I also had other accounts in my local pounds. Loved your article from all perspectives, tempted to take profits and perhaps repurchase in pounds. Constantly being reminded how little I know and how I should not be let out on my own!

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deshazo
deshazo
March 2, 2023 5:21 pm

Enjoyed this article, Travis, but this is a new question: are you going to evaluate the “tiny Israeli” company producing laser weapons for our military? Just read something about it this week. Thanks, Doc 7

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jzerio
Irregular
jzerio
March 2, 2023 9:04 pm

Great interview today on Fox Business with Michael Farkas, Blink CEO. He discussed the charging industry, competition (Tesla) and Blink’s superior charging technology. One take away was his frustration with the shorts who (according to him) are keeping downward pressure on the stock price. As of 2/27/23 total short interest was 11.1 million or 18.62% of shares outstanding, and yea that is a lot of short interest.

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quincy adams
quincy adams
March 2, 2023 9:54 pm

Looks like another “Flight of the Phoenix” story. If you buy a ticket, I’d recommend taking a parachute.

Michael Hullevad
March 3, 2023 4:30 am

There are only one supplier at the moment for 20% Uranium to be used in molten salt reactors! Rustam! It could change! Otherwise I think that RR may be a good investment in 3-5 years time.

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Mark L
Irregular
Mark L
March 3, 2023 7:14 am

I just love reading your break down of all these snake oil guys that I get all these emails from wanting me to get the next get rich scheme.

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Jeanne
Member
Jeanne
March 4, 2023 6:12 pm

What a thorough rundown on big company Rolls Royce, struggling for nearly a decade, to regain footing. Seems a good prospect now and for future, Thinkolater!

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Peter Souster
Guest
Peter Souster
March 5, 2023 6:44 am

I used to work at Rolls Royce Aerospace in mgt. accts.Had an astonishing time last ten yrs.Can’t talk about here. In the end was made redundant on weak u.s.dollar at 1.9 0 u. s. dollars to £. Rolls at the time had come off their currency hedge. Anyway know of the shock order coming R.R.’s way and why it’ s coming, likely be announced in May after 1/2 Yr. results.

Michael Orwin
Guest
Michael Orwin
March 5, 2023 3:12 pm

Some readers who can buy on the London Stock Exchange and don’t mind a microcap, might want to look into Avingtrans plc. They’re currently part nuclear engineering, and part early-stage small medical scanners. The CEO took the job in 2008 and a big share price ramp up started around 2011.

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jbmaverick
March 5, 2023 4:30 pm

I took somebody’s tip on Rolls Royce RYCEY (can’t recall who) about six months ago and, really mostly just because I’m a fan of the Rolls Royce CAR, bought some right around $1 per share. Pretty happy with it at the moment – around $1.70. It’d be nice if it could get back north of $10 a share.
(Of course, nicer if it got north of $100 a share.) 🙂

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iltrus
Irregular
March 8, 2023 5:56 pm

Talking about “NUCLEAR”: Can you please tell me if anyone likes the ticker “UUUU” or has an opinion on this small co. (Energy Fuels Inc.)?

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BABO
Member
BABO
April 12, 2023 5:31 am
Reply to  iltrus

You asked about UUUU. I bought some in Nov 2022. I could have sold it in Jan 2023 for a 40% profit but held on to it. It bounces around. Now it’s below the Nov 2022 purchase price. So, I am slightly underwater on this one.

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edwiacek
edwiacek
June 21, 2023 2:27 pm

@ $2/share, and with their “turnaround” starting to kick in, I like RYCEY!

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quincy adams
quincy adams
June 21, 2023 9:06 pm

Speaking of taking flight, Tesla itself seems to be on steroids, as it’s price has doubled since January. The eternal optimist Cathy Woods has given it a target of $1,400 to $2,000 to be achieved in 2027. That might require Tesla having a commercial electric airplane in service by then. Musk and his engineers are rumored to have their sights on the task.

Rick
Member
Rick
July 18, 2023 5:20 pm

Once again, the Thinkalator, goers above and beyond. NuScale Power Corp. makes SMR s and their stock has not taken off, yet. Rahemtulla puts on a pretty good presentation, but I’m a little leery of too good to be true talking heads.

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Brian Veillard
Member
Brian Veillard
December 16, 2023 4:38 pm

In December the shares have taken off and are now over £3.00 so the choice of Rahemtulla at last has some justification.

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