Most investors associate Rolls-Royce (RYCEF) with the royal luxury car available in London’s auto market. Frankly, Rolls-Royce is much bigger than they think but it has been struggling financially since the lockdown in March when the global economy was frozen for two months. Especially turbine engine manufacturing was hit so hard as the company recently decided to sell the equity equal to $2.6 billion.
After that sale, Rolls-Royce has a choice to conduct a 2 billion pound bond sale and a 1 billion pound term loan. Hence, RYCEF is jumping 16% on two million shares today. Before the OTC market closes the stock may reach $1.20 if aerospace-loving traders flock in continuously.
On Tuesday RYCEF sharply fell as the company announced the temporary closure of factories and cutting benefits amid plummeted demand for the turbine engines for civil aircraft. No one has money now during the second coronavirus wave is speeding up with new cases all over the world.
Finance and Tech Contributor