Smith (ds) Share Discussion Threads

[jeffian] 07/1/2020 23:17

Bareknee,

Agreed about the past couple of years but I don't think in those terms. I mainly buy for income with capital growth a nice bonus. I first bought SUS in April 2001 for £4 on a 6%+ yield, so stellar enough for me. As I said, it does have periods "in the doldrums", but as long as it keeps going up in the long term, I'm happy. Avon +720%, Diploma +375%. To get back on topic, I made quite a lot on RPC and SMDS is the replacement for that. I am expecting it to do well over time.

[bareknee] 07/1/2020 20:28

jeffian

Re "It has worked very well for me with companies like Avon, Diploma and S&U, all of which had periods in the doldrums but have shown stellar returns in the past couple of years."

I hold S&U, and have done for many years, but it's return over the last couple of years has been lacklustre rather than stellar.

I'm also a holder of Diploma, which is doing nicely, havn't a scooby about Avon though.

[moontheloon] 07/1/2020 09:39

In for a few waited for around 380 mark. Good luck all

[dr_smith] 06/1/2020 12:28

Cheers!!! :-)
You have beaten me by around 8,000 years!:
"There is evidence that beer was produced at Göbekli Tepe during the Pre-Pottery Neolithic (around 8500 BC to 5500 BC)"

[jeffian] 06/1/2020 12:17

"I can't think of any other products that have stood up to time as well."

Beer?!

[dr_smith] 06/1/2020 11:17

>Paper’s been around since ancient China
and
"a tall, aquatic plant, Cyperus papyrus, of the sedge family, native to the Nile valley: "
Is the Nile in China?
So were the Chinese producing knock offs even back then? ;-)
I can't think of any other products that have stood up to time as well.
It's so simple we take it for granted and essential when IT fails and I'm not aware of any non-(green)plastic paper replacement.

[moorsie2] 06/1/2020 10:45

Hargreaves Lansdown


2. Paper

Paper’s been around since ancient China, but we think it presents a very current opportunity for investors.

While retailers have suffered from the rise of e-commerce, it’s been good news for packaging companies. Add in a consumer base that’s more environmentally-minded, it’s particularly good news for paper packaging companies. Paper packaging is a growing market, and something we kept in mind with our choice of DS Smith in our five shares to watch for 2020.

Apart from the growing sector, we’re fans of DS Smith’s position in the market. Packaging volumes will ebb and flow depending on how well the economy is doing. But DS Smith’s many consumer goods customers, add a layer of protection, as these revenues can be more reliable, even if economic waters get a bit choppy.

There’s a little more debt on the balance sheet than we’d ideally like. This is expected to start coming down though. Still, for those that fancy a balance sheet in ruder health, Mondi’s the other UK player in paper.

Mondi comes in a bigger package, and has more exposure to emerging markets than some, which could be a source of longer-term growth. It’s worth keeping in mind though, Mondi’s customer base is more industry-focussed. That gives it an advantage when economies are doing well, but means it could be hit harder by a slowing economy.

All major packaging companies feel this to some extent. And volumes have been sluggish lately, which has contributed to lower valuations for some of the big names in the industry. Overall though we think the structural growth opportunities make the sector attractive.

[alan@bj] 05/1/2020 20:34

EJ - completely agree with those comments. Haven’t received mine yet.

[dr_smith] 05/1/2020 15:05

On investor/journo/hack opinions, I use them for links to verfiable facts, but pay no credence to their hunch/opinion, but do take tangible data/facts to form my own opinion.

Jeffian. My approach shares commonality with yours but differs slightly.
I work off expected EPS (+divs) expressed as a percentage of share price
If expectations come true, market will recognise, buy in, increase sp, and in meantime the share price value (if not market sp) will increase in line with those profits and prospects. I do not hold forever though, if I think market gets ahead of itself, I may sell.
I have bought and sold here a couple of times over 7 years, with good profit in interludes.

Folio wise, I have bought/sold very little since I battened down the hatches pre Brexit vote, as too much fog to make sound decisions.
Now..or in coming weeks, I am hoping to regain a sense of where economy is, given we are post brexit fog, post election, we should see this leading to companies plans being anounced, adding to clarity.

[jeffian] 05/1/2020 14:34

#3286,

"Now look at the 5 year chart. There is zero correlation.
I normally finish with IMO.. but the evidence makes it a fact.. unfortunately for us holders.
Baffling."

That's rather what lies behind my "buy and hold forever" strategy mentioned earlier. If you can find a share which is on a lowly PER and pays a decent dividend, it is very easy to sit back and let the market come round to your way of thinking, even if that takes a year or two. It has worked very well for me with companies like Avon, Diploma and S&U, all of which had periods in the doldrums but have shown stellar returns in the past couple of years.

[moorsie2] 05/1/2020 14:09

Guys he writes for Motley Fool. Same article as my posted link in comment 3275.

This is still undervalued IMO - should be 430 or so based on earnings and cycle etc

[alan@bj] 05/1/2020 13:44

Googled Edward Sheldon. The summary on Linkedin says, "Based in London, I am a CFA-qualified freelance investment writer. I currently write and edit investment content for asset managers, wealth managers, hedge funds, private equity firms, research firms, investment publications, and fintech startups across the UK, Europe, the US, Australia, and Asia."

[dr_smith] 05/1/2020 12:51

loganair. I have no idea who Sheldon is, but... I bought in to SMDS for those 2 specific reasons, growing ecommerce and green issues.
It is baffling that this has not led to marked increases in the share share price
How long have green issues and ecommerce been gaining traction?
Now look at the 5 year chart. There is zero correlation.
I normally finish with IMO.. but the evidence makes it a fact.. unfortunately for us holders.
Baffling.
Dave

[loganair] 05/1/2020 10:08

Welcome to 2020! Here are 3 FTSE 100 dividend stocks I’d buy and hold for the next decade by Edward Sheldon:


DS Smith:

Finally, check out sustainable packaging specialist DS Smith (LSE: SMDS). It specialises in manufacturing cardboard boxes (the type Amazon deliveries come in).

To my mind, DS Smith looks set to benefit from two powerful trends in the years ahead. Firstly, there’s the growth of e-commerce. These days, more and more consumers are shopping online and this is a trend that looks set to continue. According to Statista, global retail e-commerce sales could climb to $6.5trn by 2023, up from around $3.5trn today. This means that demand for packaging is only likely to increase over time.

Secondly, there’s the focus on sustainability. Increasingly, consumers are ditching plastics and looking for sustainable packaging solutions. Given that sustainability is at the heart of DS Smith’s philosophy, I see an attractive long-term growth story here.

DS Smith shares currently trade on a forward-looking P/E ratio of 11.2 and offer a prospective yield of a healthy 4.3%. Looking at those metrics, I think the stock offers a lot of value right now.

[dr_smith] 03/1/2020 19:24

Jeffian. I recall reading yonks ago that the most succesful portfolios are deceased folks estates - left for many years to accumulate.
Though there could easily be just as many - or more - dormant folios that dwindle, but they don't grab the news.

[moorsie2] 03/1/2020 18:05

Each to their own :)

Good luck

[jeffian] 03/1/2020 17:39

To be honest, not really. I adopt a Buffetesque technique of buy-and-hold forever. It's a "rabbit caught in the headlights" style of investing!

[moorsie2] 03/1/2020 17:24

I hear you.

But the week ahead will quite possibly determine its price action for the whole of 2020 and I am sure that is of interest to you

[jeffian] 03/1/2020 17:10

This is one of the stocks I moved a significant sum into following the lamented takeover of RPC, with the intention of holding long term for dividend income and growth. To be honest, I couldn't care less about the week ahead.

[moorsie2] 03/1/2020 17:04

Year end stock levels should be released next week. A big level on upward or downward price action as it will heavily influence paper prices in the first half of 2020. Gamble of a week ahead..

[ianood] 03/1/2020 10:59

EJ - job done, credibility intact :)

[joshuam] 03/1/2020 07:09

And we keep trending up just need to break 400 ASAP