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...oh yes except that the Greeks have said no to the last EU bail out terms which had in any event been withdrawn. So it will be interesting to see if this does finally mean the long awaited Grexit or if like other referendums which have said no to Europe they just ignore it and carry on regardless. Given the political capital invested in trying to keep the Euro train destined for ever closer union on the rails - I guess they may well come up with a new fudge as the Greek PM seems to think. Failing that they may of course allow Greece to fully default and reintroduce the Drachma and leave the Euro which while painful in the short term should ultimately help Greece to recover down the line. If that did turn out to be the case then this would put pressure on the governments of other struggling periphery economies like Portugal, Spain and Italy. Aside from that I see we have had another profits warning from Rolls Royce (RR.) which looks like it will result in around 5% downgrades. The shares have fallen by 9% to 780p this morning and this has taken them back to the November 2014 lows they reached when they last warned on profits. They have also closed a gap which opened up on the chart at that time when they started to rally. In addition as you can see from the chart below they are heavily oversold too. Thus technically they might be interesting for a trade down here once the dust has settled (continues after graph).  This was what happened last time they warned and when I suggested them as a trading buy at 780p as eventually the market comes back to it and gives it the benefit of the doubt given the long term resilient nature of the business. Thus the shares had recovered to over 1000p recently, although I did suggest taking a trading profit at around 930p.
Fundamentally, it looks fair value at 780p on around 14x the likely new earnings with a 3% yield, but given the regularity of the warnings the market may be more sceptical this time around and could de-rate it a bit I guess. So probably not one to rush into today but may be one to put on your watch list and look for signs that it is stabilising and building a base in price terms.
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