Sharesunderten observes a clear trend across listed companies. While not all sectors are currently thriving, one underlying development stands out: businesses are becoming more efficient, largely driven by increasing automation. This trend is also visible at the company discussed in this analysis. Although market conditions remain challenging, there are encouraging signs. Efficiency is improving through automation, following a period of substantial investment. With most of these investments now completed, the first results are gradually becoming visible.

This stock has never been this low. Many investors will be disappointed and didn’t anticipate the price could fall so far. For us, however, this represents an opportunity: at this exceptionally low price, we see significant potential with relatively low risk. The publication of the third-quarter results didn’t sit well with investors, but reading between the lines, we see a stabilization in the downward trend. Sharesunderten is taking a position and buying shares for its portfolio.

Investors naturally tend to show a strong home bias. They prefer to invest in companies from their own country, as these feel more familiar and closer to home. However, by investing only in the Netherlands or Europe, many investors miss out on opportunities in fast-growing markets. Geographic diversification lowers risks, provides access to sectors that are barely represented in Europe, and opens the door to regions with structurally higher growth, such as China. With companies like this, we are not only investing in a specific niche, but we are also achieving geographic diversification at the same time. Sharesunderten includes 270 shares in the portfolio.

How a company deploys its capital often determines long-term success. Cash flow can be used in many ways, from rewarding shareholders to investing in growth or strengthening the balance sheet. When these choices are made consistently, value tends to accumulate over time. The business discussed here stands out for its balanced approach, combining shareholder returns with disciplined investment and financial prudence. While share price performance has been uneven over recent years, the underlying strategy points to steady progress. This provides the foundation for a renewed focus on future value creation.

Sometimes everything seems to be right with a stock: revenue is growing, margins are improving, and the order book looks strong. The valuation is historically low. Everything looks so positive that we almost start to wonder if it’s too good to be true. But that’s not the case here, as four directors recently bought back shares. This gives Shares Under Ten confidence that this stock is on the verge of a strong recovery. In our view, this is an underexposed and undervalued stock.

Despite a well-filled order book through to the end of 2027, the share price has dropped 30% since it began to look like Trump might win the election. While Trump introduces more uncertainty than other presidential candidates, Sharesunderten still sees enough potential and fundamentals to remain confident.

Let’s be honest — it does look good when you’re trading “shares under ten” and you’ve got Rolls-Royce in your portfolio. Despite the prestigious name, this stock fully qualifies as a true penny stock. Shares Under Ten is adding 2,000 shares to the portfolio at the current price of around 97 pence. 5-Year Share Price Performance – Rolls-Royce Holdings plc. Company Profile The Rolls-Royce brand is, of course, best known for its luxury cars — but many may not realise that the automotive business has long been owned by BMW. Rolls-Royce Holdings plc, founded in 1884 and headquartered in London, operates independently and focuses on engineering and power systems. The company is structured into four divisions: Civil Aerospace, Power Systems, Defence, and New Markets. The Civil Aerospace division designs, manufactures, and services engines for large commercial aircraft, regional jets, and business aviation. The Power Systems division develops and sells integrated power and propulsion solutions for marine, defence, and selected industrial sectors. The Defence division supplies engines for military transport aircraft, patrol aircraft, and naval propulsion. The New Markets division focuses on small modular reactors (SMRs) and new electric energy solutions, as well as maintenance, repair, and overhaul (MRO) services. The New Markets division is expected to play a key role in the global energy transition. Rolls-Royce is working to accelerate the launch of a new generation of mini nuclear reactors, a development fast-tracked by the ongoing energy crisis. While these SMRs aren’t expected to be operational before the early 2030s, management is eager to speed up the process, especially as Western nations seek to reduce dependence on Russian fossil fuels following the invasion of Ukraine.   However, engineers within the company have expressed frustration with the slow pace of regulatory approval in the UK, arguing that the government’s process for reviewing reactor safety is unnecessarily burdensome. Rolls-Royce aims to build SMRs that generate around 470 megawatts of power — just one-seventh the output of a large-scale nuclear plant, but at roughly one-twelfth the cost. The UK government has stated that the company’s technology is entirely new and must therefore undergo thorough scrutiny. Rolls-Royce engineers, however, point out that the technology is based on decades of experience in nuclear-powered submarines, a proven and extensively tested field.   Rolls-Royce cannot be acquired without government approval. The UK government holds a so-called “golden share,” which grants it special veto rights. This share does not offer profit participation or capital rights, but allows government representatives to attend general meetings and block specific strategic moves — such as takeover bids — that could affect national interests. Financials The UK’s most well-known engineering firm was hit hard by the COVID-19 pandemic, as airlines pay Rolls-Royce based on the number of flight hours logged by its engines. Given these extraordinary circumstances, FY2020 and FY2021 are not considered reliable indicators of the company’s underlying performance. In 2021, Rolls-Royce reported £414 million in underlying operating profit, a sharp turnaround from a loss the previous year. Growth in the Power Systems and Defence divisions contributed significantly to this financial improvement. However, the company also reported a free cash outflow of £1.5 billion from continuing operations in the same year. CEO Warren East commented on the results: “We have improved our financial performance, met our short-term commitments, secured new business, and made important strategic progress during the year. While challenges remain, we are increasingly confident about the future and the significant commercial opportunities presented by the energy transition.” Rolls-Royce’s credit profile has improved since the onset of the pandemic, and its exposure to the Russia-Ukraine conflict remains limited. As a result, Moody’s upgraded the company’s outlook from negative to stable. Pros Strong visibility and predictability of earnings Stable margins in the Defence division New CEO Warren East is aiming to bring fresh momentum to the company Cons Loss of market share in the business jet segment Disappointing cash flow development High R&D costs for new engine programmes Conclusion We are not particularly enthusiastic about this stock. While management certainly shows no lack of ambition, those good intentions have yet to translate into improved results. The company appears to be spread too thin across too many markets — and it’s simply not possible to be best-in-class everywhere. A more focused approach would likely serve Rolls-Royce well. Divesting non-core activities and doubling down on key strengths could strengthen both performance and investor confidence. The business jet division, for example, already faced structural challenges before the energy crisis, and its outlook remains weak. A sale of this unit might be a sensible move — especially if a solid price can still be secured. Back in August 2021, management announced it was open to selling assets such as ITP Aero, the turbine blade manufacturer, in an effort to raise at least £2 billion. Strategic asset sales like these may be necessary to unlock value and refocus the company. Third-Party Analyst Ratings for Rolls-Royce.   Globally, twenty analysts currently cover Rolls-Royce Holdings, and the consensus view is that the stock could gain around 28% over the next 12 to 18 months. At Shares Under Ten, we believe the share price has likely found a bottom, and we’re taking this opportunity to add the stock to our portfolio. Naturally, we’ll be monitoring developments closely. A takeover seems highly unlikely under current circumstances. Rolls-Royce plays a vital role in the UK defence sector, and the government holds a golden share that gives it veto power over any unwanted acquisition. In addition, ceding control over Rolls-Royce’s expertise in modular nuclear reactors would run counter to the UK’s long-term energy policy. Former Prime Minister Boris Johnson has been a strong advocate for nuclear energy and clearly sees the company’s know-how as a strategic national asset — especially amid the current energy crisis.Takeover rumours have surfaced before. Rolls-Royce was the subject of M&A speculation both in 2015 and again in 2020. However, following a series of profit warnings in 2015, the stock price fell by around 75%, and its recovery

The Dutch staffing company Brunel is a globally operating specialist employment agency, active in various fields, including energy, engineering and IT. Brunel distinguishes itself from its competitors by its focus on highly qualified specialists and niche markets, such as the oil and gas industry and renewable energy, combined with a strong global presence. Employment agencies are generally considered early cyclical.

Sharesunderten is surprised that the price of this Belgian share Deceuninck has fallen by more than 10 percent in one year, despite the fact that the price of the Turkish (listed) company Ege Profil, of which Deceuninck owns almost 88 percent of all shares, has risen by no less than 280 percent in one year. Investors seem concerned about the

Grab is a young and fast-growing tech company with strong market positions in Southeast Asia. The company was founded as a kind of Uber to match taxis and customers, but has grown into a super app that allows users to initiate all kinds of activities. Grab has been listed for two years and despite the phenomenal growth that the company

The combination of a share buyback and a (higher) dividend payout could push BP’s share price significantly higher over the coming months and years. If everything goes according to plan, shareholders can expect a total cash return of 8% to 11% per share from 2022 onwards — considerably more than what the major industry peers are offering. We’re aiming for