Smith (ds) Share Discussion Threads

[marksp2011] 25/6/2019 07:48

I am buying these again gently having sold out at RI time. Not crowing but I have never had a good experience with RIs and tend to exit as policy and wait for the dust to settle

The results were OK and I have a MACF holding too so have theme exposure - I use MACF as a supplier so know them. They are good so someone will buy them I expect.

I think there is a general down on companies that do acquisitions and so have foggy accounts - we live in nervous times

[moorsie2] 21/6/2019 12:56

Nickname27 - your posts 3030 and 3032 are factually incorrect as I stated at the time.

Took the two minutes to get the facts on ROCE

DS Smith - 13.6%
Smurfit kappa - 19.6%
Mondi - 23.6%

Mondi is a slightly different business model as it is more large mills and less small converting businesses so not directly comparable on ROCE but Smurfit Kappa is and DSS trails significantly....

[heapos] 20/6/2019 13:48

At least I'm pleased to know that as I don't do any technical analysis at all that somebody does on here to help me out :-)

[heapos] 20/6/2019 10:48

I got into GOCO at 65p so pleased as punch. Hope DS does as well as I'm going to hold on for the ride.

[fhmktg] 20/6/2019 10:24

Couple of nice buys there!Interest growing.

[heapos] 19/6/2019 15:57

I know this is a ds smith site - but just wondering if anyone bought some go compare last week after my request for advice as a newbie? Up 16% since then and 11% today alone. Chuffed to bits.

[gabsterx] 19/6/2019 13:09

Mr Market:

Thursday: Hooray, we love DS Smith!
Monday: Oh wait, no we hate you DS Smith
Wednesday: Sorry, sorry, we love DS Smith again!

What a load of BS short term trading is. I wish I could just turn off the stock market and come back in 10 years!

[phillis] 19/6/2019 09:32

Jeff
A lot of costs are one off - just part of running and growing a business
Had they needed enhanced software because their base business was growing fast, would this have been an "adjustable" item?

[ygor705] 19/6/2019 08:40

Looking at this year's chart suggests a very gentle uptrend punctuated by a hiccup down to the 300p level. The news background has improved and absent a general market fall I'm not convinced that the shorters are going to see 300p in the near future. I'm anticipating a slow improvement over the next 6 months with the top of the trading range being just under £4.

[philanderer] 19/6/2019 00:06

Questor: a sound set of results confirms DS Smith as a solid choice for income seekers

[jeffian] 18/6/2019 17:29

I'm no lover of "exceptionals" myself, but I suppose the answer to your question is that if they are deemed to be one-off non-recurring items, then theoretically the "underlying" profit should be revealed when this cost drops out in the current year.....except that they had a similar figure in for the previous year! The item you highlight represented £20m out of £90m "exceptional" costs, so not too fundamental. I don't like it much but they all seem to do it (as we know from our dealings at RPC).

[phillis] 18/6/2019 17:12

So the Company makes a couple of large acquisitions which requires a significant investment in new software

Why is that. An adjusting item...

[moorsie2] 18/6/2019 16:39

Not the numbers I remember - mondi and skg around 18% and 17% respectively and smds around 14.5% ... I will dig further

[nickname27] 18/6/2019 16:07

Well, skg's is negative. pkg's is about the same: ~14-15%. Mondi's looks higher in 2018 but I can't find anything newer.

So not higher no, but not radically different.

[moorsie2] 18/6/2019 14:06

Their ROCE last time I looked was below main competitors. Happy to be corrected on this nickname if you have upto date data to hand.

[nickname27] 18/6/2019 11:44

their roc is way better than the industry average. i can't see that being a reason to short. Esp when you have things like kier around thay you can short to zero instead.

[jeffian] 18/6/2019 11:23

Re the reaction to brokers' notes, it may be a reflection on human nature but I can't help noticing that whilst buy/upgrade notes produce little or no impact on the share price, sell/downgrade notes seem to generate disproportionately large downward movements! Same thing happened to me at GNK recently.

[fhmktg] 18/6/2019 11:11

The Company's positioning in FMCG, wide market presence, innovative technology and the 'Loop' recycling offer auger well for future growth potential. Delivery through the economic cycle will be the test, together with a progressive dividend policy.What's not to like!

[loganair] 18/6/2019 10:49

Yes....negative sentiment towards plastic, much will be replaced by paper and cardboard packaging.

[zicopele] 18/6/2019 10:42

Has the market in packaging changed fundamentally since last recession?

E commerce is thriving.

Maybe the acquisition prices reflect long term trends.

[loganair] 18/6/2019 09:28

My understanding of Buy/Sell recommendation is...

Buy if expecting share price to rise by more then 10%
Add share price to increase by 5% to 10%
Hold share price plus or minus 5%
Reduce share price to fall by 5% to 10%
Sell share price to fall by more than 10%