Rolling in the Dough With This Value Play

More than two years ago, I recommended members buy shares of Rolls Royce PLC (RYCEY), the aircraft engine maker.

At the time, it was trading around $1, which are penny stock numbers. However, this company was far from a penny stock.

In fact, it was a $140 billion company 10 years ago. And while it had seen its value fall to $10 billion in recent years, I considered a $1 share price a strong value for the reasons below.

For one, RYCEY was still dealing with a black swan event. During the Covid-19 pandemic in 2020, it lost substantial revenue due to lack of flying.

The company’s subscription model requires planes flying in order to make money. If planes don’t fly, it crushes the bulk of its profits, which is exactly what happened. But if travel picked back up, I knew it could get its bread-and-butter profits back.

Second, the company was a victim of poor decision making from management. That said, the company’s turnaround was already in motion back in 2022.

It had become cash flow positive after a massive restructuring led to a substantial debt reduction. Its new management team was also aligned with shareholders, and with a share price around $1, shareholders stood to make HUGE money if the company could turn things around.

Lastly, RYCEY had a foothold in several emerging technologies, including EV powered aircraft and nuclear energy, meaning it had a pipeline of new exciting products. Overall, it checked all the boxes for signs it could rebound.

Fast forward to 2024 and that’s exactly what happened.

More people are traveling. Long haul routes are opening up, and now, RYCEY prices are $5 per share.

RYCEY Share Increase Since 2021

Members have already made a pile of money on this trade, including Chuck D, who is putting his profits towards a retirement home.

Members talking about their gains from RYCEY

One member made a $26,320 gain after selling 8,000 shares.

Members talking about their gains from RYCEY

These results are possible when you focus on fundamentals of a potentially lucrative long-term play. In the case of RYCEY, I saw the most important variables were sound. I also got in when the price was low, and held on through volatile headwinds for a substantial reward.



These long-term plays are exactly what I focus on in The War Room and Trade of the Day Plus. When you join, you can trade alongside me in real time to know when to enter a value play like RYCEY.

So if you want your shot at the “next” Rolls Royce pick, click here to sign up.