Why I’m sticking with my Rolls-Royce tip

Rolls-Royce shares have taken a beating after a warning over profits. But the company is in good health, says Phil Oakley. It’s not a time to sell.

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Rolls Royce: in rude health

If there's one thing the City hates, it's disappointment. The price of a company's shares is based on expectations of what future profits will be. So if a share price is to stay high and rising, profits have to do the same or at least promise to do the same. You can't disappoint people.

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Phil spent 13 years as an investment analyst for both stockbroking and fund management companies.

 

After graduating with a MSc in International Banking, Economics & Finance from Liverpool Business School in 1996, Phil went to work for BWD Rensburg, a Liverpool based investment manager. In 2001, he joined ABN AMRO as a transport analyst. After a brief spell as a food retail analyst, he spent five years with ABN's very successful UK Smaller Companies team where he covered engineering, transport and support services stocks.

 

In 2007, Phil joined Halbis Capital Management as a European equities analyst. He began writing for MoneyWeek in 2010.