|Hi lambeater, I believe your information to be correct.
In terms of Ball Corp, the share price seems to have stalled since 2015 after a huge rise. Maybe this takeover will kick start them onto growth again. I like the business and they will be in a strong position with global scale which I think counts in this business when taking on the likes of ABInbev etc
If I am correct the divi yield is tiny, advfn says 0.72%. That would be disappointing.
Currently I am minded to keep Ball shares to give exposure to this market. I assume I will be able to hold these in my ISA ?
Most recent results release
In the news release, Ball Reports First Quarter 2016 Results, issued 28-Apr-2016 by Ball Corporation (BLL) over PR Newswire, we are advised by the company that in the "summary of the effects of the above transactions on after-tax earnings is as follows:" table, the "Per diluted share before above transactions" row in the 2016 column should read "$0.59" rather than "$0.58" as originally issued inadvertently. The complete, corrected release follows:
Ball Reports First Quarter 2016 Results
- First quarter comparable earnings per diluted share of 59 cents vs. 69 cents in 2015, due to competitive pricing in China, tough year-over-year comparisons in metal food packaging and start-up costs
- Multiple growth capital projects ramping up to benefit remainder of 2016 and beyond
- Americas metal beverage and global aerosol packaging volume growth offset by project start-up costs
- Aerospace contracted backlog at the end of quarter $729 million; an increase of more than $100 million since year-end 2015
- Proposed offer for Rexam PLC anticipated to close in late June
BROOMFIELD, Colo., April 28, 2016 /PRNewswire/ -- Ball Corporation (NYSE (NYX): BLL) today reported a first quarter 2016 net loss attributable to the corporation of $127 million, or a loss of 90 cents per diluted share (including after tax charges of $213 million, or $1.50 per diluted share for business consolidation, debt refinancing and other costs) on sales of $1.8 billion, compared to $21 million of net earnings attributable to the corporation, or 15 cents per diluted share (including after tax charges of $76 million, or 54 cents per diluted share for business consolidation costs, debt refinancing and other costs), on sales of $1.9 billion in the first quarter of 2015. Comparable earnings per diluted share were 59 cents in the first quarter 2016 versus 69 cents in the first quarter of 2015.
"Strong operating performance in our U.S. and European metal beverage businesses was offset by difficult year-over-year comparisons in our China metal beverage and U.S. metal food businesses, as well as start-up costs for growth projects," said John A. Hayes, chairman, president and chief executive officer. "Our proposed offer for Rexam continues to move forward and we expect the transaction to close in late June."
Details of comparable segment earnings, business consolidation activities, historical segment reporting, and Rexam transaction-related hedging and other costs can be found in the notes to the unaudited condensed consolidated financial statements that accompany this news release.
Metal Beverage Packaging, Americas & Asia
Metal beverage packaging, Americas and Asia, comparable segment earnings in the first quarter 2016 were $102 million on sales of $937 million, compared to $125 million on sales of $1 billion in the first quarter 2015.
In North America and Brazil, first quarter volumes improved, all of which was more than offset by weakened demand and price erosion in China. During the first quarter, the company began production on one of the new beverage can lines and multiple end lines at its Monterrey, Mexico, facility with a second beverage can line scheduled to start up in mid-2016. Start-up costs related to this major project will moderate in the second half of 2016 as production ramps to support our customers' demand.
Metal Beverage Packaging, Europe
Metal beverage packaging, Europe, comparable segment earnings in the first quarter 2016 were $39 million on sales of $356 million, compared to $29 million on sales of $379 million in the first quarter 2015.
Comparable segment earnings were higher in the first quarter due to lower year-over-year aluminum premiums and strong manufacturing performance.
Metal Food & Household Products Packaging
Metal food and household products packaging comparable segment earnings in the first quarter 2016 were $20 million on sales of $284 million, compared to $30 million on sales of $308 million in the first quarter 2015.
During the first quarter, the segment faced difficult year-over-year volume comparisons, inventory holding losses and start-up costs related to the introduction of a new two-piece steel aerosol investment in the U.S. Demand for metal aerosol containers remains strong and related investments made in late 2015 will provide momentum throughout the remainder of 2016.
In February, the company also announced the closure of its Weirton, West Virginia, steel food and household metal service center, which is expected to cease production in early 2017. Certain equipment will be redeployed throughout Ball's existing U.S. manufacturing locations to support the segment's remaining facilities.
Aerospace and Technologies
Aerospace and technologies comparable quarterly segment earnings in the first quarter 2016 were $18 million on sales of $180 million, compared to $20 million on sales of $215 million in the first quarter 2015.
Across the segment, effective cost management continues and the company is in the final stages of negotiating multiple contracts for programs awarded in late 2015. As projected, contracted backlog grew more than $100 million to $729 million at the end of first quarter and anticipated meaningful quarter-on-quarter backlog improvement will further position the company for stronger segment performance in the future.
During the quarter, the business acquired Wavefront Technologies, a specialized engineering services firm that provides systems and network engineering, software development and analytical services for cyber and mission-focused programs within the U.S. government. Ball will leverage its existing hardware capabilities to complement this acquisition.
"We continue to expect 2016 free cash flow to be in the range of 2015 free cash flow, excluding cash costs for the proposed Rexam acquisition. The multiple currency and interest rate hedges implemented throughout 2015 and early 2016 to mitigate risk related to the proposed acquisition continue to influence GAAP accounting results," said Scott C. Morrison, senior vice president and chief financial officer.
"Operationally and from a demand perspective, our first quarter results were largely in line with our expectations. We fully expect for our businesses to gain momentum through the balance of this year as our cost optimization efforts are further realized and the growth capital deployed in 2015 transitions into full production," Hayes said. "We are nearing the finish line on our proposed offer for Rexam and look forward to reaping the benefits and increasing EVA dollar generation."
About Ball Corporation
Ball Corporation supplies innovative, sustainable packaging solutions for beverage, food and household products customers, as well as aerospace and other technologies and services primarily for the U.S. government. Ball Corporation and its subsidiaries employ 15,200 people worldwide and reported 2015 sales of $8.0 billion. For more information, visit www.ball.com, or connect with us on Facebook or Twitter.|
|As we enter the final 3 weeks before REX is eaten up by Ball, I wanted to compare my take with others who still hold. I may be wrong on some points.
The default action is 407p in cash and 0.04568 Ball shares per REX share. An alternative is 610p with a meagre top up of an uncertain amount of cash/Ball shares.
I reckon that for anyone holding less than 2,000 shares it is not worth taking either offer and it is better to sell at best price in the market, reason being that you would end up with too small a quantity of Ball shares to be a viable investment. You have up until and including June 23rd to trade/decide.
I have 2,400 shares and it is my intention to take the default offer which will result in £9,768 in cash plus the cash that relates to a fraction of one Ball share in the offer, call it £32, totalling £9,800. It will also give me 109 Ball shares, currently worth USD7,848 (based on a Ball share price of USD72) which at the current rate of Cable (1.4430/0.693) equates to £5,438.
So that is a grand total of £9,800 + £5,438 = £15,238 compared to 2,400 x 627p (current sp) = £15,048, better by £190. Of course this will vary depending on the exchange rate and the future performance of Ball.
I think Ball is a good investment and good political and currency hedge.
I post this partially in order to help others and partially for others' advice as, despite thinking I understand the offer, I may not have done so!|
|Thanks, safely received now, was an issue with file transfer to platform|
|I got my divi on 6th. Paid into my TDW account.|
|Did everyone get their dividend on the 6th May ?? Despite the takeover the REX website says the divi will be paid on the 6th|
|My post 1020 was spot on.
Market dip on monday then up again today.
Though a monkey had a 1 in 4 chance of getting it right too.
This monkey is expecting market (exc. oil) to go up up up for rest of January.
IMO DYOR :-)|
|Now sold, to take advantage of overall market dip.|
|I had decided to cash in but then the market went against me, I am now tempted to hold to the bitter end.
Other stocks cheap today, maybe cheaper tomorrow. buying is still a lottery. At some point it will be lucrative. Good stocks look oversold, but economic downturn could hit profits where it hurts.|
Still hold mine ftb, but have been buying elsewhere today to make most of dip.
I am guessing it will be another dip Monday, then start clibing quickly.
As Rex hasn't been knocked down like others, other things equal, to sell Rex and buy repressed share seems wise for us PI's.
I hope our paths cross many times, no doubt like a game of snakes and ladders with 'volatility' being one of the watch words according to the latest YouInvest video.
Dave (Russell) Smith - I'm not a Doc but too many D Smiths' for simpler handle.
As always: NAI DYOR|
|All gone Dr Smith , bought some bargains in this weak market.
I don't think that the latest economic data really justifies such widespread share price weakness. But if someone wants to sell , then happy to buy.
See you on another BB!|
|RNS * 2 for 8/1/16:
Morgan Stanley holding down from 10,281,259 to 5,652,757
UBS Investment Bank
UBS Group AG up from 35,487,746 to 42,702,509
Wad, even the institions are undecided, ;-)|
|(whisper mode on) 611 now - holding another 3 hours would have covered stamp duty. Maybe re-invest in crystal ball ;-)|
|Sold another 1000 at 606. Almost gone....|
|Thank-you Wad for calcs. I think you are right re looking for alternatives, especially at this time of year, but sentiment inconsistencies along with world markets volatile hinders decison making.
I used to be decisive, now I'm not so sure. ;-)|
|Ball 69.16 x0.04568 = $3.15 sterling usd 0.69 =£2.17
+£4.07 cash = £6.24
so a 19.5p gap ; 3%
Brazil said yes 10 days ago but I see no other news.|
|I need to liquidate some of folio in next few weeks so this a prime contender.
Let me know when you go, I don't want to be on my own. ;-)|
|Down to my last 2000 ; I think the opportunities elsewhere are for more than 2-3 %. Little more blip will see me out.|
|Say 31/3/16 as an H1 average for purpose of an easy maths calculation and ignore other problems - that's my gut instinct :-)
I bet your motivation is more to do with tidyness like me.
I also have TCY awaiting t/o finalisation and a couple of rubbish oilers I could sell but hoping any rebound will outweigh possible gains elsewhere.|
|But the time-frame is uncertain;
"The deadline extended for the third time to Jan 22 from Dec. 23 after companies submitted commitments"
The most recent company statement was "early 2016" which could be months. And the possibility of further problems remains.|
|I anticipated an end of year dip, so sold some 'toppy' shares and now looking to re-invest, yesterday or today...but probably wait for Monday morning to decide.
Re Rex, I guess the question is, will your alternative re-invest give >4% in same time frame.
Could make 2-3% (less 1% stamp duty) in a couple of weeks with a good buy elsewhere.|
|Offer now worth £6.25
Rex at £6.
So 25p for holding ..is it worth it?
It is about the same gap as a month ago . The question in my mind is what to do with the money. I suspect the market will bounce up again and soon wipe out advantages of hanging on for 4%. I may be proved wrong but I am selling some more if it touches 603 today.|
|Nice one Wad.
I was employed by Nat west for 23 years.. man and boy, hardest job in the world ;-)
I had a staff house loan, which was taxed on benefit.
When I left and moved my mortgage I found I was paying less 'net' at commercial rates (with 'egg' at time).|
|Sadly I am not a youngster either ; when I opened my first bank account on leaving school , Nat West were paying 11% interest. Now I have a 30 yr business loan from them at 1.5% (Which they regret!).
Can't see 11% interest soon ; but you never know. Reichmarks.|
|Yes, yes and yes. :-)
I see xmas period to mid feb as a time with lots of changes, and tomorrow we have Fed rate rise likely, which I see as minor consequence, though market no doubt will make big deal of it.
So an opportune period Wad for you to apply your cunning opportunistic plan.
I was reading yesterday there are a high proportion of youngsters in the markets who haven't experienced rate changes. Stand by for rattles to be thrown out of prams. ;-)|
|If you see it in isolation then it makes sense to hold for a few more pence , but if you think the wider market is under-priced , then better to see it as an opportunity. Of course the market could drop further and make it wiser to have delayed buying. I still have about 5000 REX.|