Smith (ds) Share Discussion Threads

[bscuit] 11/7/2018 12:20

Typo,

I was looking at the figures on a pure investment basis. How has the net value of my holding adjusted between the date prior to the announcement and now - all other things being equal? Just my way of looking at the benefits.

[bscuit] 11/7/2018 09:52

etome,

If you're still here. The link to the company site in the header appears to have been hijacked by a US company. I clicked to logon to the company site to check a detail and was puzzled.

Looks as if the reference to UK in the webpage address is erroneous -certainly now.

[losos] 11/7/2018 09:28

Typo56 - Ref post 2382 well luck or not you got it just about right :-)

Also I have to agree with you and others that these 'rights issues' are kind of 'swings & roundabouts' in that you could just buy in the market today at an equivalent price but I'm a tight git and don't like paying commission haha.

Good luck to all, let us hope it's onwards and upwards for SMDS :-)

[typo56] 11/7/2018 09:25

If you let them lapse you'll still receive payment (unless SMDS bombs below 350p). It may be more or less than 137p - rather depends on the market price on 25 July.

[santar] 11/7/2018 09:16

Don’t let the rights lapse - you can sell them, currently for 137p each.

[typo56] 11/7/2018 07:38

Bscuit, quite right. I should have added there's no commission on taking up rights.

I'm not sure what you mean by "pre-announcement price reduction". If you mean the ex-rights dip (which took place yesterday), this loss in value in SMDS is effectively transfered to the nil paid rights (SMDN). You could realise this by selling the rights or letting them lapse. Currently that would mean about 146p per right. However, if you pay 350p to exercise the right you forfeit the 146p.

As gettingrichslow pointed out, there's not really any special deal for loyal holders. Anyone could buy in the market at 496p, the same as it costs to take up the rights (ignoring the dealing costs and stamp duty).

[dssmith51] 11/7/2018 07:23

Thank you so much guys. This is most helpful. I wish you all the best in your endeavours to make a profit. I will let you know my decision. At the moment I thinking on taking up 50% rights and allowing 50% to relapse.

[bscuit] 11/7/2018 00:25

There is no commission on taking up rights.

[dssmith51] 10/7/2018 23:09

Great! Thanks Typo and Bscuit. I think is kinda confirms my thinking on this matter. My rights is for 5376 shares I believe @ £3.50 costing £18,818 to take up my full rights plus the cost of commission which in likely to be minimal. Options 2 and 3 are I believe exactly as indicated by you Typo. Fortunately I have a build up of cash of a little over £19,000 which I can use if I wish to take up all the rights issue. However as some stage I do need to release 50% of my shares, as the holding is a lot to me. Other shares I have are in the low hundreds. I can see the shares trading at 520 to 530 following a soft brexit or no brexit. I dread to think what will happen if a solution on brexit is not agreed between UK and the EU. Cheers. John

[gettingrichslow] 10/7/2018 23:07

As is so often the case with rights issues, many people seem to think they are somehow 'better off' by taking up their rights, because they are 'discounted'!
Unfortunately, it doesn't work like that. The term 'discounted' is very misleading. Typo explained it well a couple of weeks ago. There is rarely a compelling reason to take up rights rather than let them lapse. After all, if you wanted to enlarge your holding, why would you need a rights issue to prompt that? Why wouldn't you have just bought more shares beforehand?

[bscuit] 10/7/2018 22:34

typo - surely part of 1 is slightly inaccurate as the CASH cost is the 350p is the price to be paid as the rights price has in effect been paid already by having the holding and the pre-announcement price reduction.

Also a current year ISA subscription could be made - if not already used.

[typo56] 10/7/2018 21:34

You can:

1) Take up your rights, in full or in part. This will cost you 350p per right and on that sort of holding you'll have about 5,400 rights. You may not have sufficient cash in the ISA to do that. (Bear in mind the total cost of taking up your rights isn't just 350p, it's 350p plus what you could have got selling the rights - this amounts to the price of buying SMDS in the market like anyone else!)

2) Sell your rights, in full or in part. The rights trade under the ticker SMDN (which will track about 350p below SMDS). You'll pay broker commission.

3) Let the rights laspe and receive your share of the proceeds from the rump placing. You may get a bit less than you might have received selling the rights, but that's not always the case. If you do this you won't pay commssion.

[dssmith51] 10/7/2018 18:38

Hi! I'm new here. I know very little about buying shares and rights issues. I bought DS Smith shares in a single share ISA years ago. I have almost 20,000 shares bought over 6 years £2.29 down to below £1. Can anyone please tell me what my options are concerning the rights issue. 1. What happens if I do not take up the rights issue and I allow it to lapse? I know I can take up the rights. I am unsure if I can sell the rights? Any help would be very appreciated.

I did not know what shares to buy at the time for a single share ISA. I asked a work colleague and he said "my wife works for a good company, D S Smith, so I invested £3000 in the ISA and repeated it over 6 years. Help on my options would be appreciated and advice which I can at least consider.

[laugh1] 10/7/2018 14:38

WARNING FOR :   financial institutions and business partners of DS SMITH
Based on undeniable facts, we regret to inform about unethical acts of DS Smith Board in their newly purchased plant in the US.
It is highly immoral when the Group Chief Executive of DS Smith - Mr. Miles Roberts tries to hide the theft of the trade secret in Reading Mill, Pennsylvania and accepts false testimonies of its Managers.
Notification of the committing crimes:DS 20180619

[typo56] 10/7/2018 14:26

I've just looked back and I see that last month I suggested TERP would be around 490p, but only based on the price SMDS was trading at that time (which was possibly around 525p).

The fact it's around 490p today is really only down to luck that SMDS was trading at a similar level yesterday to what it was back then. With all the things going off in the market it could have been very different. Based on close last night of 518.2p I reckon TERP to be about 482.2p, so it's actually risen a bit today.

Stay safe. Most 'experts' are out to fleece you!

[losos] 10/7/2018 12:23

Typo56 - Was it you who calculated the TERP as 494p ?? If it was then well done 'cos looks like you got it exactly right.

[typo56] 10/7/2018 08:16

If you were a new investor, would you want to buy the ex-rights shares today at around 483p? If not, don't take up the rights.

[churchtower] 06/7/2018 13:04

Loses - like you did not vote on proposal. Will be taking up my full entitlement of the rights issue. I regard this as a solid and productive investment for the next three years.

[losos] 06/7/2018 12:14

churchtower - Did you vote on the proposal ? My broker sent me an e-mail and I had the option but passed on it, what's the point haha will take up rights on or shortly after the 10th.

[churchtower] 06/7/2018 11:31

Rights Issue Expected timetable of principal events -

9.00 a.m. on 6 July 2018
4.30 p.m. on 6 July 2018
Provisional Allotment Letters despatched (to
Qualifying Non-CREST Shareholders only)(3)
9 July 2018
Admission 8.00 a.m. on 10 July 2018
10
Dealings in New Ordinary Shares, nil paid,
commence on the London Stock Exchange
8.00 a.m. on 10 July 2018
Ordinary Shares marked "ex-rights" by the London
Stock Exchange
8.00 a.m. on 10 July 2018
Nil Paid Rights credited to stock accounts in
CREST (Qualifying CREST Shareholders only)
Nil Paid Rights and Fully Paid Rights enabled in
CREST (Qualifying CREST Shareholders only)
8.00 a.m. on 10 July 2018
as soon as practicable after 8.00 a.m.
on 10 July 2018
General Meeting 11.00 a.m. on 10 July 2018
Recommended latest time for requesting
withdrawal of Nil Paid Rights or Fully Paid Rights
from CREST (i.e. if your Nil Paid Rights or Fully
Paid Rights are in CREST and you wish to convert
them into certificated form)
4.30 p.m. on 18 July 2018
Recommended latest time and date for depositing
renounced Provisional Allotment Letters, nil paid or
fully paid, into CREST or for dematerialising Nil
Paid Rights or Fully Paid Rights into a CREST
stock account
3.00 p.m. on 19 July 2018
Latest time and date for splitting Provisional
Allotment Letters, nil paid or fully paid
3.00 p.m. on 20 July 2018
Latest time and date for acceptance in CREST
and payment in full and registration of
renounced Provisional Allotment Letters
11.00 a.m. on 24 July 2018
Expected date of announcement of the results of
the Rights Issue
by 8.00 a.m. on 25 July 2018
Dealings in New Ordinary Shares, fully paid,
commence on the London Stock Exchange and
New Ordinary Shares credited to CREST stock
accounts (uncertificated holders only)(3)
8.00 a.m. on 25 July 2018
Expected date of despatch of definitive share
certificates for New Ordinary Shares in certificated
form(3)
not later than 3 August

[churchtower] 04/7/2018 09:21

Market cap marked down 1% on 132000 shares traded, majority buys this morning. The manipulation continues.