Smith (ds) Share Discussion Threads

[heapos] 21/9/2018 10:08

just wondering if this is a good buy for me from my proceeds of the impending sale of harvey nash?

[churchtower] 21/9/2018 09:33

Well done GRS. Substantial volume yesterday. Looks as if you have chosen a good entry point.

[gettingrichslow] 21/9/2018 08:52

Dogwalker, Church,
As per my view in our debate in July, the share price has indeed drifted downwards steadily since the rights issue, I'm now back in using the sale of lapsed rights money, at a much lower price than if I'd exercised the rights.

[phillis] 04/9/2018 11:48

Nice firm statement
Continue to tuck away

[dssmith51] 28/8/2018 11:16

LOL. O Phillis, you certainly know how to treat "church" with a deep honesty. I am also an admirer of churchtower and the information he/she provides om here.

[phillis] 28/8/2018 10:29

tx Church
A bit more accurate than your previous post

[churchtower] 20/8/2018 09:03

Trading statement due on 4th September.

[ygor705] 15/8/2018 19:58

Opened a position here today. The price is bang on the bottom trend line of the 3 year chart which hardly makes sense for a company in the booming box sector that has recently made an earnings enhancing European acquisition.

[gettingrichslow] 30/7/2018 11:23

There is no £1.50 'profit' from the rights issue, no free money, no magic money tree! Same debate we had before about the 'discount' offered during a rights issue!

[churchtower] 30/7/2018 08:48

Once those who are choosing to bank the £1.50 profit on each share from the recent rights issue are disposed of then we should begin to see a steady move upwards.

[phillis] 26/7/2018 14:58

all over now
a lot of fuss about not very much

[losos] 26/7/2018 12:32

Mirandaj - Sustainability Review......too lengthy & convoluted for me haha. Will it help them to make more cardboard boxes and increase the divi ??? answers on a postcard please haha.

BTW Got my RI shares yesterday, share price up today, I'm showing a small cap gain, looking good so far.

[mirandaj] 26/7/2018 09:46

DS Smith publishes annual Sustainability Review, launching nine new, ambitious targets

[typo56] 25/7/2018 11:30

SMDS rump got placed at 500p.

If you sold your nil paid shares for 150p or less, you'd have done better simply letting them laspe. There's no guarantee of course, that's markets for you.

[gettingrichslow] 19/7/2018 17:02

DSSmith51, don't worry, that kind of thing is easily done. Only the other day I was trying to withdraw a few £k from an account and somehow managed to transfer IN the same amount again!

[dssmith51] 18/7/2018 08:49

Thank you to all you guys out there. I did speak with my online broker customer service. I panicked due to not understanding. All your comments are helpful in understanding my situation. I cannot thank you enough. Basically I incurred costs of only 50 quid (Stamp duty and fee) for buying rights in the market (my mistake. I was more concerned that I may be thousands out of pocket which is likely very unrealistic. Have learnt something. I believe my existing rights.. 5389 bought in the market by mistake + a balance of "my rights" of 1839 (5389 less 3550 being the rights I have taken up) means I now have 5389+1839 rights that I can if I wish sell by 23rd July or allow them to lapse and accept the lapse price paid on the 24th July. Does this make sense? Maybe a profit in it by my mistake in the region of £75 gain for every 1p increase in the rights increase on what I paid. Likewise a loss of £75 for every 1p drop in the price? I hope I make sense.

[typo56] 18/7/2018 08:18

Agree, talk to your broker and see if they can help. You never know, if you sell the extra rights today you might even end up in profit!

Another big rights issue announced this morning, this time FUTR. Here we go again!

[dr_smith] 17/7/2018 20:55

DSSmith51.
Phone your broker/online provider.
They may be able to do some swap or offset, as a goodwill gesture, hopefully with low/zero fee...Worth 2 minutes on the phone.

[kazoom] 17/7/2018 20:54

Hi DSS51 - if I'm reading correctly from here

The rights are exercisable up to 11 am on 24th July, so you should be able to trade them up to the 23rd, or presumably you get the cash value if you do not exercise them.

[dssmith51] 17/7/2018 20:06

Hi All! What a muck of it I made today (stress stress). I thought I was taking up my rights, but instead what I actually did on line was to buy rights in the market. My rights was for 5389, plus buying another 5389 rights in the market = 10,778 total rights held. It was so easy for me to make this mistake online by a newbie. Does anyone one what the final day of trading in rights is? I believe I can sell my rights or allow them to lapse and receive 150p or so for every rights share I do not take up. Any suggestions or whatever would be gladly appreciated, in particular the deadline date for trading in the the rights shares.

[typo56] 17/7/2018 08:16

The 'discount' isn't just there to persuade existing holders to part with more cash. It's required in order for underwriters to accept the risk of the rights failing, which they do for a nice fee of course.

It also engineers a dip in the share price. Like it or not, most of us look at historic price charts rather than market cap charts and consider a dip as a good time to buy. So the market cap can end up being higher than it would have done without the rights 'discount', rather than anything fundamental.

[gettingrichslow] 15/7/2018 16:30

Typo, exactly! And the answer to your question is that loads of investors would say 'hey, that's not much of a discount, I'm not buying!' which just goes to show how ridiculous the whole thing is - and which is precisely why I asked the question to Churchtower in the first place. Basically most people just don't understand what's going on and think they are getting some sort of bargain because of the way the RIs are structured and the terminology used such as 'discount' - comical really when you think about it...

[typo56] 15/7/2018 15:17

My understanding is the underwriters won't see the shares unless the rights issue bombs and SMDS trades below the 350p rights price. If that does happen, I can't see them being very 'delighted' to have to buy them at 350p.

Otherwise, all the lapsed rights (the rump) will be placed on 25 July, probably at a slight discount to the price prevailing at the time, and the proceeds (net of the 350p rights price) distributed to the holders of the lapsed rights.

Private investors are probably wiser to rights issues these days but I think even experienced investors can be seduced by the rights 'discount'. I wonder if the rights would be subscribed so keenly had it been, say, 2 for 11 at 525p rather than the 3 for 11 at 350p. If not, why not? In both cases you're being asked for about 95.5p per existing share, in order to maintain the same percentage stake in the company.

[gettingrichslow] 15/7/2018 12:33

Yes, reluctantly. They are hoping they don't need to take any. And you're not buying at 350p for god's sake!! It's 350p plus foregoing the value of the rights! So market price! The underwriters could have bought at market price and didn't, so yes it is 'reluctantly' as I said!