Rolls-Royce (LSE:RR., Financial) is one of the leading producers of wide-body aircraft engines, which are typically used in larger airplanes designed for long-haul and international travel. The Covid-19 pandemic has materially hurt the company's business. Although we expect travel will rebound strongly following vaccine distribution, we believe it will take longer for long-haul and international travel to revert back to pre-pandemic levels. As a result, our intrinsic value estimate fell quite materially during the pandemic, though we continued to hold our position since the share price remained below our estimate of intrinsic value. As the share price moved closer to our estimate of intrinsic value in the fourth quarter, we began reducing our position until we were fully exited during the past quarter. We allocated the capital from the divesture of Rolls-Royce into securities with strong risk-return profiles.
Get Your 7-Day Free Trial!
All-In-One Screener Dividend Income Portfolio Ben Graham Lost Formula Canadian Faster Growers CEO Buys CEO Buys after Price Drop > 20% Dividend Growth Portfolio Dividend Income Portfolio Fast Growers Hedge Fund Guru Top 10 Aggregated High Quality High Quality Low Capex w ROE ROC min High Quality & Low Capex High Yield Insider Buys Historical High Dividend Yields International Gurus' Top Holdings James Montier Short Screen Margin Decliners Mega Caps Peter Lynch & Warren Buffett Peter Lynch Growth w Lower Valuation Peter Lynch S&L Traded Below Book PFCF Screener Piotroski Score Screener Predictable Growth Companies Profitable predictable margin expanders Stocks Sold w less Cash Good Companies The Stalwarts
All-In-One Screener S&P 500 Map S&P 500 Bubble S&P 500 Aggregate Buffett-Munger Screener Industry Overview Undervalued Predictable Benjamin Graham Net-Net 52-week/3Y/5Y Lows 52-week/3Y/5Y Highs Magic Formula(Greenblatt) Dividend Stocks Peter Lynch Screen S&P500 Grid Predictable Companies Spin Off List Historical Low P/B List Historical Low P/S List High Short Interest Upcoming Special Dividends Delisted Stocks
Model PortfoliosPerformances Undervalued Predictable Buffett-Munger Low P/S Low P/B 52w Low Predictable Broadest Owned Most Weighted
Latest Guru Picks List of Gurus Real Time Picks Guru Portfolio Top 10 Holdings View Guru Bargains Hot Picks Aggregated Portfolio Consensus Picks ETFS Score Board Sector Picks International Picks Industry Trends Geographic Trend Options European Shorting
Buffett Indicator Industry Overview U.S. Treasury Yield Curve Shiller P/E Global Market Valuations Economic Data Shiller P/E by Sectors Buffett Assets Allocation GF Value for SP500 Index
The Dow Jones Industrial Average (DJIA) SP 500 Index Nasdaq Composite Index Gross Domestic Product (GDP) Shiller PE Ratio of Wilshire 5000 over GNP Civilian Unemployment Rate Russell 2000 Small Cap Price Index CBOE Volatility Index (VIX) Total Nonfarm Payrolls: All Employees More...
David Herro Comments on Rolls-Royce
Guru stock highlight
Also check out:
Not a Premium Member of GuruFocus? Sign up for a free 7-day trial here.
0 / 5 (0 votes)