Rpc Share Discussion Threads

[ed 123] 09/2/2017 10:33

Agree, some companies have been hiding underperformance through acquisitions.

I can't really answer where they would be since so much changes. What I do know is that the market for plastic packaging is growing due to a shift from glass and metals to plastics. Also, the number of middle class people in the world is going up as a long term trend and they are more likely to buy packaged products. So, RPC operates in a market in long term growth. Also, I know that RPC can use its bulk buying and savings on central overheads to improve the earnings of its acquisitions. The acquisitions can also bring new processes and new customers, to benefit the core Group. FWIW, I've spoken to some of the directors at RPC and they impress me. Nothing flash, they focus on steadily raising RPC's earnings. A good pension holding for me. (No advice intended.)

[typo56] 09/2/2017 10:21

Ed123, that's an interesting point you make about the FTSE100. The next review is due on 1 March (based on market caps at close 28 Feb). That might explain why this rights issue is being processed so fast!

[typo56] 09/2/2017 10:13

I'm normally wary of a company that grows this much through acquisition and has annual rights issues. There's always scope for them to mask underlying poor performance. That may not be the case here but it would be interesting to try and analyse where they'd be now, had they not been through so many acquisitions and rights issues.

[ed 123] 09/2/2017 10:01

Hi Typo56,

Yes, maybe there is too much enthusiasm overall to taking up rights. In the case of RPC, however, there is a history of rights issues to support acquistions and those acquisitions have done well for RPC and its shareholders. So, for me here, I thin out my less well performing shares and take up my rights.

With the Letica buy and some share price appeciation due to the Group performing well, RPC may not be far off entering the FTSE100 at the year end reshuffle?

[phillis] 09/2/2017 09:58

Dozey
Either sell the nil paid rights or sell sufficient of your holding to take up your rights in full (tail swallowing)
These are your simplest options

[dozey3] 09/2/2017 09:54

Thank you 18BT, but I do realise that. Looking at past RPC rights 143p Nov 2011, 320p Jan 2015, 450p Jan 2016, my records show that in each case I subsequently sliced at more than double the rts price, mostly within 12 months, so my earlier post was not completely correct (sorry).
That suggests that RPC acquisitions (so far) reward holders who back management, and full take-up has proved the most rewarding. My intention this time (provisionally) is to take-up and go well overweight for a while, aiming to return to earth when the market latches on. And, btw it won't involve a mortgage!
No advice intended of course.

[18bt] 09/2/2017 09:18

Dozet, if you don't take up, you will get the value of the nil paid rights. You could sell sufficient of the nil paid rights to pay up the remainder.

[shauney2] 09/2/2017 09:18

Expected timetable of principal events



Record Date for the Rights Issue


Close of business on 7 February 2017

Admission and commencement of dealings in Nil Paid Rights on the London Stock Exchange


8.00 a.m. on 10 February 2017

Latest time and date for acceptance and payment in full and registration of renounced Provisional Allotment Letters


11.00 a.m. on 24 February 2017

Commencement of dealing in New Ordinary Shares fully paid, New Ordinary Shares credited to CREST stock accounts


8.00 a.m. on 27 February 2017

Expected date of completion of the Acquisition


by the end of March 2017

[miti 1000] 09/2/2017 09:16

Cheers, as I thought. Doesn't help my long though as piled in earlier this am !!

[typo56] 09/2/2017 09:14

My reading of it is they commence trading ex from open tomorrow. i.e. on admission and commencement of dealings in nil paid shares.

These announcements seem to almost be designed to confuse retail punters, with terms like 'record date', which to me should only concern back office clerks, especially if you have a nominee account and don't have to deal with the administration.

[miti 1000] 09/2/2017 09:10

Typo....can you confirm that the ex-rights date is tonights close from your understanding ? It looks like a poorly worded rns to me.

[typo56] 09/2/2017 08:57

I've never understood people's enthusiasm to take up rights. Apart from stamp duty and dealing costs (which are noise level) you don't really get a special deal over anyone else buying in the market. The cost of taking up rights isn't just 665p, it's also the value you've given up in the nil paid rights (current estimate about 295p per rights share if RPC trade at 960p ex).

[panic investor] 09/2/2017 08:53

Love the last line on that !

[ed 123] 09/2/2017 08:46

Well done on your winning strategy.

You won't have time to remortgage! Last day for payment is 24 February 2017.

Bank loan now and clear it later with a remortgage.

(Definitely no advice intended!)

[dozey3] 09/2/2017 08:42

This is today's rns:



Having a few years back, and not before time, adopted a policy of ditching losers and running winners, RPC is my largest holding. That makes the Letica acquisition a bit of a problem, because 1 new share for every four at £6.65 amounts to a considerable additional investment.
The announcement says "...· a discount of 37.2 per cent. to the middle market closing price of 1,059 pence per Ordinary Share on 8 February 2017, being the last business day before the announcement of the Rigts Issue; and a 32.2 per cent. discount to the theoretical ex-rights price of 980 pence on that closing price." Which makes it sound compelling.
In addition, not only have past purchases and rights issues by RPC been very rewarding, but Letica appears to be in the right place, at the right time and at the right price.
My feeling at this early stage is to remortgage and take up the rights. What do you think?

[wallywalrus] 09/2/2017 08:32

When do you think brokers will start offering the rights shares?

[ed 123] 09/2/2017 08:04

Another acquisition, plus ...

The adjusted operating profit for the period was significantly ahead of last year and also better than management's expectations, ...

I'm a happy holder will take up rights.

[mfhmfh] 31/1/2017 08:30

23rd February 2017.

hxxp://www.rpc-group.com/corporate/investors/financial-calendar/2017

[from8to800] 31/1/2017 07:12

When will there be an update/results?

[jeffian] 06/1/2017 23:46

If you go back to post 1029, press "edit" and change the t's as I said, it will form a link!

[mfhmfh] 06/1/2017 19:12

hTTps - thanks for letting me know

[jeffian] 06/1/2017 18:49

I saw that. I thought the writer missed a trick because he cited the threat of rising polymer prices as a potential problem for RPC whereas us old RPC hands know that they are able to recover these increased raw material costs via price adjustments, albeit with some lag (in both directions).

(Edit: by the way, if you replace the 't's with capitals so that it starts hTTps, it will override ADVFN's silly filters and form a link)

[mfhmfh] 06/1/2017 18:07

hxxps://www.hl.co.uk/shares/five-shares-to-watch-2017?utm_source=Silverpop&utm_medium=email&utm_campaign=EOWSI_NEW%20Weekly%20shares%20email_47_four%20articles_opted%20in_LEADS%20(1)&utm_content=Article%201&theSource=EOWSI&Override=1&sp_mid=53143730&sp_rid=ZmFyYXpfaGFxdWVAaG90bWFpbC5jb20S1

[broadwood] 05/1/2017 07:23

Nice TP increase.

Peel Hunt
RPC Group PLC
05/01/2017
Reiterates
Buy
Buy
0
1,140.00
1,225.00
1,069.00

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