Smith (ds) Share Discussion Threads

[alan@bj] 10/10/2018 08:10

From today's Times:-
Britain’s paper and packaging makers were put through the shredder yesterday after fears were raised that the supply would increase.

Shares in Smurfit Kappa, Mondi and DS Smith were all sent lower after Nine Dragons, a Chinese paper maker, said that it was investing $300 million in its recently acquired mills in the United States so that it could boost output.

Smurfit Kappa fell 124p, or 4.3 per cent, to £27.36; DS Smith crumpled 11¾p, or 2.6 per cent, to 447p; and Mondi edged down 23p, or 1.2 per cent, to £19.46.

The paper and packaging sector has presented a starry investment case as the trend for online shopping drives demand. British packaging stocks were weaker at the end of last week, which analysts at Jefferies said was down to market weakness and speculation about a future decline in the paper price. “We believed this is misplaced, with EU containerboard prices unchanged [according to the paper and packaging intelligence company Risi] in September.”

Investors will be watching the broader sentiment in the sector when Mondi issues a trading statement tomorrow.

[ianood] 09/10/2018 07:56

Moorsie2 - take a look at the Capital Markets day presentation slides, they may change your opinion

[moorsie2] 09/10/2018 07:29

move away from plastics will be a benefit but only over a 10 year period and if people genuinely turn away from plastic use

[ianood] 05/10/2018 17:38

And the move away from plastics not in the equation?

[moorsie2] 05/10/2018 13:24

Santar - p/e/ depends on visibility of future earnings

Next two years earnings could be considerably lower than forecasted if demand slows down and paper prices drop due to such a slow down and over capacity.

This is why the US firms have fallen by so much since Q1 2018

To be clear demand has not slowed down or prices dropped it is just the market pricing in the likelihood of it happening or taking a more cautious view of the future than this year

[santar] 05/10/2018 09:24

Moorsie2 - why do you see this drifting down to circa 400?

Broker consensus EPS for this year is 37.28p and Div 16.61p. An share price of 400 would give a P/E below 11 and yield over 4% - more than twice covered. For an FTSE 100 company strongly growing both top and bottom line that would be the bargain of the century.

[moorsie2] 05/10/2018 09:01

Kraftliner prices have not fallen

Rather new capacity was announced in USA on Tuesday. This knocked 8% off the big US players.

Consequently European companies corrected by 6% on Thursday

DS are more exposed due to their US acquisition so I could see this drifting down to circa 400 here

[churchtower] 05/10/2018 06:29

There are 113 pages on the company website (investors section) setting out details in an easy to absorb format of the presentation yesterday. If you are sufficiently interested in this Company and their strategy to deal with the changes taking place in the packaging industry it is well worth a visit.

[marksp2011] 04/10/2018 18:20

So what did they say on the Capital markets Day?
looks like it must have been a cracker.

[brain smiley] 04/10/2018 18:04

Kraftliner prices have fallen - according to CNBC.

[losos] 04/10/2018 15:50

churchtower - 9.8p only about 2% of SP yet they are down 6% today. Must be nerves about Italy (And maybe Spain) Looks like we are in for some vary tempestuos times in the markets until all the BREXIT malarky is sorted. What do you think ???

[typo56] 04/10/2018 15:16

Those who shunned the rights issue have come out rather better than those who took it up. They're a bit of a con IMO. But you knew that already!

[churchtower] 01/10/2018 09:23

9.8p dividend, goes XD on Thursday.

[churchtower] 21/9/2018 13:25

Heapos - If you are investor with a medium or longer term view then I would recommend a purchase. Be aware it goes XD soon.

[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