Cadbury Schweppes Share Discussion Threads

[kumala] 01/10/2009 08:31

gregglucy:
off topic again sorry:
Hi buddy, ive been slowly looking around for the right company to use to spread bet, and although there are many about to speed up my reseasrch and narrow my choice hence why i asked the question. Ive been trading many years but the old fashion way, I buy stock with cash and sell when im ready and then the returned cash is deposited back to my account, ive done well over the years, but n ow decided to trade for a living so am looking to diversify a little and broaden my trading style gearing for larger and more trades, and although i am not a fan of the shorters, dare i say if the market were to change direction i will have the tools at my disposal to still make an income, I have pinpointed stock over the last 2 months that would have enhanced my profits if i had a spread bet account open.
Thanks for your thoughts and reply on the subject and indeed i will let you know which company i eventualy choose.
Good luck with your trading.
Regards
K

[gregglucy] 30/9/2009 20:06

Kumala.
Off topic:
Just like u Im a newbie to spread betting and 4 exactly the same reasons as yourself. Im still going thru the research process and so definetlty not an expert. Id agree with all of Talons comments espec ref Tradefair. Im not interested in research tools etc. Someone suggested to me "Natwest Index" its not exactlty mainstream and i was a bit dismissive. It doesnt have the bells n whistles of other platforms, but it is very user freindly. In many ways its a similar product to CMC's inc available instruments - (common ownership) but different look n feel to their mainstream platform. If u just need a platform 4 straightfwd dealing it ticks all the boxes. Margin req's (allthough recently increased) are still sensible. Back office staff are efficient and an emailed statement every morning. Its basic but works (especially for a simple bloke like me!) Id be interested to know which sb co you end up with. G.

[kumala] 30/9/2009 19:08

talon13:
off topic:
Thanks buddy for your reply, i will look into tradefair tomorow, and check out city index and Finspreads as well, Never done spread bets before allways used hard cash to buy the stock, but like the fact of the gearing and no tax. Have all me dosh tied up with various stock at moment and can see oportunities sliping by while iom waiting for things to pan out so to speak, so spread bets seam the way to go.
Thanks again buddy for your detailed reply.
Regards
K :)

[topicel] 30/9/2009 14:18

Yep wad collector - or not. But the market has hardly batted an eyelid, so they're comfortable with the somewhat extended timeline to settle things on Kraft's behalf.

If it drifts, be quick to move, but if it stays still or gains a little, maybe add!

Friend's Provident took over a month before Resolution came back with an improved offer, and then, after that, moved another ten percent or more in the following month!

So hold firm.

Topicel

[talon13] 30/9/2009 12:26

OFF TOPIC: hey kumala, re your question about spreadbet companies. I have accounts with CMC Markets and Tradefair. I find that CMC has a great range of markets to choose from but their trading platform isn't the most user friendly or naturally intuitive. But it's efficient. Tradefair's platform is much easier to use and it's ideal for the beginner spreadbettor. They dont' have quite the full range of markets as CMC but they do have all the main markets your likely to be interested in. I'd defintiely recomment Tradefair as a first spreadbet account.
If your likely to be interested in spreadbet options, have a look at either City Index or Finspreads. Regards.

[wad collector] 30/9/2009 10:52

So the Takeover Panel has, as expected , forced a put up or shut up clause with a 9th Nov deadline.Keeps the ball rolling.Or not.

[kumala] 29/9/2009 18:22

yea feel the same talon13 am looking to use the funds i have hear for another stock, be good to get the increase weve been waiting for, make a decent profit and pile in else where.

OFF TOPIC: any body have any thoughts on recomending a decent spread-bet company, ive been looking at a few and one stands out being CMC Markets, your feed back would be apreciative. Thanks.

K

[talon13] 29/9/2009 16:56

I hope something happens soon. All this hanging around waiting for this bid situation to progress is getting just a tad boring.

I wouldn't mind too much if there was a worthwhile payoff at the end of it, but there's no guarantee of course.

[kumala] 29/9/2009 10:12

zz zz waiting zz zz

[topicel] 29/9/2009 09:22

Cheaper doesn't mean it won't be appetising still!

Of course it will underperform or overperform until the situation is clarified by either Kraft walking away (unlikely imho) or another improved bid is made that may trigger further hostile action or a rival...

So we have a few more days to wait imho.

Topicel

[wad collector] 28/9/2009 16:17

It has underperformed the FTSE100 over the last week.

[nigelbarker] 28/9/2009 15:43

currency wise cadburys just gets cheaper whoever makes a bid

[kumala] 28/9/2009 12:25

Cadbury on defence as Kraft gets hostile
Daily Mail & This is Money
28 September 2009, 8:40am
Cadbury is ready to defend itself against an £11bn hostile bid from Kraft, but hopes that the Takeover Panel will issue a put-up-or-shut-up demand this week to force its rival's hand.
The chocolate firm has already rejected an informal 745p-per-share offer from American food group Kraft, but it expects it to remain persistent.
Cadbury shares closed at 800p last week. Analysts are speculating that Kraft may have to pay as much as 850p to gain control. Around half of the offer is expected to be in cash but Kraft is still finalising its financing.

Kraft is also said to be in the final stages of putting a financing package together which would enable it to offer around half the sum in cash.

It is thought rivals Nestle or Hershey may also come forward and table a bid for the group. It is understood that the Takeover Panel is this week preparing to set Kraft a 'put up or shut up' deadline, under which it must make a firm offer or walk away for at least six months.

A deal between Kraft and Cadbury, which is the world's second biggest confectionery firm behind Mars, would create a 'global powerhouse' with annual sales of around £30.5bn, according to Kraft.
The US firm has also sought to give assurances that a deal between the two would see jobs protected and possibly even created.

But Cadbury's chairman Roger Carr has said the offer 'fundamentally' undervalues the business and is of 'uncertain value' for Cadbury's shareholders.

He also dismissed the 'unappealing prospect' of Cadbury being absorbed into 'Kraft's low growth, conglomerate business model' in an open letter addressed to Kraft chief executive Irene Rosenfeld.

Meanwhile, it was reported that Cadbury is considering reducing the size of its chocolate bars to offset higher cocoa costs.

The company has already introduced smaller bar sizes abroad to keep prices below key levels which would deter buyers, according to the Independent on Sunday.

It quoted the group's finance director Andrew Bonfield as saying: 'In Australia, we've relaunched Cadbury's Dairy Milk in a new pack size.

'We were able to use price points and the promotional strategy as a way of actually realising higher prices without necessarily a headline price increase.

These are the sorts of things we'll continue to look at as we go into 2010

[kumala] 28/9/2009 11:32

mmm looking good for a higher share price

[gorse] 28/9/2009 11:20

£ falling against the $ must help the bidder.

[kumala] 28/9/2009 11:16

still edgeing up.....^ ^ ^ ^ ^

[kumala] 28/9/2009 08:29

Bloomberg news this morning mentioned an expected ( up to )£8.50 hostle bid iminent from kraft. and an expected counter bid expected from nestle & Hershey combined.
K

[topicel] 25/9/2009 15:26

And now Bloomberg has Stitzer saying he sees 'no benefits' either strategic or financial' to a deal with Kraft.

Those Yanks must be hopping mad by now. Bloomberg analysed it as Cadbury sayibg again - "show us the money"...

Not long.

Topicel

[kumala] 25/9/2009 14:55

Cadbury boss Todd Stitzer is not exactly mounting a Churchillian defence of the confectionery company's independence and is giving every indication of talking the price up for an inevitable capitulation to a foreign predator. He admitted in an interview that a tie-up with US processed foods maker Kraft makes 'some strategic sense' while comments he made at an investor conference were interpreted – incorrectly the company later claimed – as putting a 900p per share price tag on the company.

Stixner reportedly observed at the investor conference that previous takeovers in the sector had gone through on EBITDA (earnings before interest, tax, depreciation and amortisation) multiples in the mid-teens, and this prompted a Merrill Lynch number cruncher to postulate that 900p would represent an acceptable offer price for Cadbury. (Read more: Cadbury admits Kraft deal may make sense)

Taken from Digital look.com 250909

K

[kumala] 25/9/2009 14:51

Kraft, owner of Maxwell House and Kenco, is not short of feehungry bankers keen to underwrite the deal and has good banking relationships.
It has been in negotiations with financial institutions since it made its Cadbury interest public almost three weeks ago, and is now at the stage of asking banks for their best offers. Kraft said at the time of its approach that the possible offer was preconditional on it raising the funds, but most observers mistakenly thought it had already made inroads with the banks.
Kraft's initial offer was a mixture of cash and equity, valuing Cadbury at 745p-a-share.
But analysts believe Kraft could stretch to 800p with some suggesting the deal could top 900p a share, or £12.2billion.

the above is an extract from the full article
K

Read more:

[kumala] 25/9/2009 13:56

Topicel: where did you see that info, cheers
K

[topicel] 25/9/2009 13:53

Stitzer has given the nod it seems, £8.50-60 is coded in his support teams denials that he wishes Cadbury to remain independent.

The Kraft deal will be given next week to put up or shut up by the Takeover Panel and by then they'll have the financing to go all cash if necessary.

Clearly the City is also anticipating fresh moves elsewhere - Hershey/Nestle - in Stitzer's comments too. He's basically inviting the rivals in to take a gum/choc split. All nice and gooey!

Topicel