Well, it turned out that I was right Rolls Royce (LSE: RR). I have previously wrote that the Rolls-Royce shares, which already works, may rise if the aviation engineer announced that he was working well and raised his goals again. Presto, in its temporary results last week, the company did so. The Rolls-Royce shares have jumped to the highest new level ever.

It was amazing height. With an increase of 80 % already this year, FTSE 100 Class now 1,234 % Higher than five years ago.

Compare this to profit by 55 % in the index during that period, and the Rolls completion volume is clearly.

I missed the last gains after selling Rolls shares for a while. It may be time now is the time to add it to my wallet?

Performance of strong business

The arrow’s jump did not come out of nothingness.

During the first six months of the year, Rolls recorded a profit before the tax of 4.8 billion pounds. Like this represents a huge jump of 1.4 billion pounds for the equivalent period last year. The company’s management is pre -tax profits, which amounted to 1.7 billion pounds. This was much smaller than the legal number, but it is still much higher than the previous year of 1.0 billion pounds.

In both cases, Rolls’s profitability jumped. In the company’s words, I saw the period “A significant improvement in the year in all the main financial scales“.

But the price of the Rolls-Royce has not jumped to the highest new level ever for the strong performance so far, which I think has already been priced. Part of the increase reflected what I previously set as a potential for the stock price-another height of the company’s performance goals.

The primary operating profit for this year raised from 2.7 billion pounds to 2.9 billion pounds to 3.1 billion pounds-3.2 billion pounds. It is now expected that the free cash flow for this year will come with an amount of 3.0 billion pounds-3.1 billion pounds, an increase of 2.7 billion pounds-2.9 billion pounds previously.

This company is on fire!

I have to admit, I like. Under its current administration, Rolls-Royce not only set difficult financial goals, but also managed to present them-and raised them.

Can you continue to do this? The wind is in Rolls. As its results showed, the demand for civil aviation is high for initial sales and service. The demand for energy systems is also high, as revenues in this section grow by generally on an annual basis.

Meanwhile, while the company’s defense department has reported only 1 % annual revenue growth, demand from Western governments is high and I expect businesses to grow in the coming years.

However, the increasing price of the Rolls-Royce shares means that the company is now customizing a marketing of a market of 90 billion pounds. For me, this looks high. The company’s performance has shifted – but some basic market dynamics did not.

In the main civil aviation market, we know from the experience that an unexpected sudden event such as epidemic or terrorist attack can see the collapse of demand overnight. I don’t think the risks are reflected in the current Rolls-Royce share price, so it will not invest.