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New Hire News Sends Rolls-Royce Stock Into Full Supernova

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Written by Staff
Updated 4/18/2022 3 min read
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Rolls-Royce Holdings plc (OTC Pink: RLLCF) stock spiked as much as 470% on Tuesday after announcing a new CFO over the weekend.

RLLCF isn’t the main ticker symbol for Rolls-Royce in U.S. markets. The company also trades under the tickers RYCEF and RYCEY on OTCMarkets. Those tickers barely moved on Tuesday.

The company trades on the London Stock Exchange under the ticker symbol LON: RR.

Rolls-Royce is probably best known for its ultra-luxury vehicles with price tags starting at $300K.

However, the company is also a leading manufacturer of aviation engines. The UK-based company supplies both Airbus (privately held) and The Boeing Company (NYSE: BA) with engines for many of their most popular aircraft.

The vast majority of commercial aviation engines are produced by General Electric Company (NYSE: GE), Pratt & Whitney (privately held), and Rolls-Royce.

The business has been hit hard after the travel industry was all but shut down in 2020.

Panos Kakoullis, who spent 30 years at the accountancy giant Deloitte has been named the new CFO.

According to a report from Sky News, Kakoullis “has no direct CFO experience at a FTSE-100,” which is the main stock index for the London Stock Exchange. The Sky report states that “One former colleague of [Kakoullis] said he was ‘ideally suited’ to the job, having advised blue-chip names including Tesco and Vodafone.”

More Breaking News

Last year, Rolls-Royce cut 9,000 jobs and raised nearly $7 billion in new debt. This year, the company plans to temporarily close its jet-engine factories over the summer, which is expected to affect 19,000 employees.

Despite the challenges that lay ahead, U.S.-based traders piled into RLLCF stock when the market opened on Tuesday morning.

RLLCF closed at 1.7 cents per share on Friday. Tuesday morning, the price spiked as high as 9.8 cents per share, an increase of 470%. At writing, the stock is trading near 6 cents per share still up nearly 250% on the day.

Penny stock trading teacher Timothy Sykes commented, “No penny stock, C-class or main ticker, is a good long term-investment. Trade whatever is hot.”

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* Results are not typical and will vary from person to person. Making money trading stocks takes time, dedication, and hard work. There are inherent risks involved with investing in the stock market, including the loss of your investment. Past performance in the market is not indicative of future results. Any investment is at your own risk. See Terms of Service here

The available research on day trading suggests that most active traders lose money. Fees and overtrading are major contributors to these losses.

A 2000 study called “Trading is Hazardous to Your Wealth: The Common Stock Investment Performance of Individual Investors” evaluated 66,465 U.S. households that held stocks from 1991 to 1996. The households that traded most averaged an 11.4% annual return during a period where the overall market gained 17.9%. These lower returns were attributed to overconfidence.

A 2014 paper (revised 2019) titled “Learning Fast or Slow?” analyzed the complete transaction history of the Taiwan Stock Exchange between 1992 and 2006. It looked at the ongoing performance of day traders in this sample, and found that 97% of day traders can expect to lose money from trading, and more than 90% of all day trading volume can be traced to investors who predictably lose money. Additionally, it tied the behavior of gamblers and drivers who get more speeding tickets to overtrading, and cited studies showing that legalized gambling has an inverse effect on trading volume.

A 2019 research study (revised 2020) called “Day Trading for a Living?” observed 19,646 Brazilian futures contract traders who started day trading from 2013 to 2015, and recorded two years of their trading activity. The study authors found that 97% of traders with more than 300 days actively trading lost money, and only 1.1% earned more than the Brazilian minimum wage ($16 USD per day). They hypothesized that the greater returns shown in previous studies did not differentiate between frequent day traders and those who traded rarely, and that more frequent trading activity decreases the chance of profitability.

These studies show the wide variance of the available data on day trading profitability. One thing that seems clear from the research is that most day traders lose money .

Millionaire Media 66 W Flagler St. Ste. 900 Miami, FL 33130 United States (888) 878-3621 This is for information purposes only as Millionaire Media LLC nor Timothy Sykes is registered as a securities broker-dealer or an investment adviser. No information herein is intended as securities brokerage, investment, tax, accounting or legal advice, as an offer or solicitation of an offer to sell or buy, or as an endorsement, recommendation or sponsorship of any company, security or fund. Millionaire Media LLC and Timothy Sykes cannot and does not assess, verify or guarantee the adequacy, accuracy or completeness of any information, the suitability or profitability of any particular investment, or the potential value of any investment or informational source. The reader bears responsibility for his/her own investment research and decisions, should seek the advice of a qualified securities professional before making any investment, and investigate and fully understand any and all risks before investing. Millionaire Media LLC and Timothy Sykes in no way warrants the solvency, financial condition, or investment advisability of any of the securities mentioned in communications or websites. In addition, Millionaire Media LLC and Timothy Sykes accepts no liability whatsoever for any direct or consequential loss arising from any use of this information. This information is not intended to be used as the sole basis of any investment decision, nor should it be construed as advice designed to meet the investment needs of any particular investor. Past performance is not necessarily indicative of future returns.

Citations for Disclaimer

Barber, Brad M. and Odean, Terrance, Trading is Hazardous to Your Wealth: The Common Stock Investment Performance of Individual Investors. Available at SSRN: “Day Trading for a Living?”

Barber, Brad M. and Lee, Yi-Tsung and Liu, Yu-Jane and Odean, Terrance and Zhang, Ke, Learning Fast or Slow? (May 28, 2019). Forthcoming: Review of Asset Pricing Studies, Available at SSRN: “https://ssrn.com/abstract=2535636”

Chague, Fernando and De-Losso, Rodrigo and Giovannetti, Bruno, Day Trading for a Living? (June 11, 2020). Available at SSRN: “https://ssrn.com/abstract=3423101”