Wednesday, 8th July 2015

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Tuesday share tips: Rolls Royce

Tue 7th Jul 15, 15:45:47

Bad habits are hard to break, with Rolls Royce's latest profit warning being a case in point. It may just be the standard kitchen-sinking exercise after the company's new boss, Warren East, came in. Nonetheless, it should be noted how the company's stock dropped by 9%, twice the amount of its earnings downgrade for this year. That means the shares are now trading on just 13 times forward earnings, a discount to its long-term average of 15 times.

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