What are your thoughts on Rolls-Royce (RYCEY)? I bought it at 1.91 and it kept on dipping so I kept on buying because I think it’s undervalued?

OPINON

stock is a probability game, if there is no long term up side then no go. Do some critical thinking before jump into detail analysis, is it a pass or a steal? For Roll-Royce, is a falling knife. i'll pass.

Market sentiment

Market drop 50% within 2 years. Rolls-royce did something wrong that why get punished.

stagnent for 4 years. stubborn management refuse to change?

covid cause it dropped from ~$9 to $1.6.

is not an easy task to be consistence bad for 7 years. When there is a market bull run it didnt take part, when there is a crisis it plunges . Red flag.

Buisness perspective

very niche market. How many can afford rolls royce car? Automobile industry is very competitive and it limits their market shares. Not avaliable to general public. Lack ability to scale.

Boeing, B2B again hard to scale. How many plane boeing make a year? Military B2G, support by govt, no scaling only guarantee "iron-rice bowl"?

It is a tradition manufacturing plant. Not much ground breaking innovation that can change people life. They can only increase profit by cutting cost & increase sale. Difficult.

Financial

A quick glance revenue increases but earning negative. Red flag.

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Nobody can predict the development of a single stock. Neither the professionals, nor the retail investors.

Neither by technical, nor by fundamental analysis.

(only insiders can have an illegal chance to predict).

the many buy (or sell) recommendations of financial analysts are only selfserving publicity.

so, sorrily, no valid prediction of any kind possible.

recommendation:

-read the book by Burton Malkiel: "A Random Walk down Wall Street"

-on what to avoid, You can read here:

https://seedly.sg/questions/what-is-your-genera...