Smith (ds) Share Discussion Threads

[fhmktg] 03/7/2020 07:48

I'll still be buying too much stuff from Amazon, trying to help SMDS!But a cut, rather than a total suspension of the dividend would have been a smarter move, rewarding patient small holders for their continued faith.Not only have I no income from my holding, but a capital loss to boot.

[2vdm] 03/7/2020 06:59

It remains a well run company with a strong position in the market, using sustainable products with good reserves. Shame about the dividend, but where will we be in a year from now. Possibly a vaccine. More and more people buying online which requires packaging.

[redartbmud] 03/7/2020 06:31

Alternatively:

SMDS Smith (DS) PLC Peel Hunt Buy Buy 360

[redartbmud] 03/7/2020 06:07

Numis seems to be thinking along similar lines to EJ. Hmmm....


Numis: don’t be fooled by DS Smith’s ‘optical’; attraction

Numis remains cautious on DS Smith (SMDS) as the packaging business expects Covid-19 to hit next year’s figures.

Analyst Kevin Fogarty retained his ‘hold’ recommendation and target price of 300p on the shares, which fell 6.9% to 296.7p yesterday.

‘The more cautious outlook for full-year 2021 provides support for our neutral stance on the shares ahead of results, which were principally around the operational impact of volume sensitivity to the macroeconomic cycle and the risk that Covid-19 poses to this,’ he said.

Volume declines of 1% and 4.5% in March and April, respectively, have already proven Fogarty’s point.

He said as full-year 2020 results come in lighter than expected and cost risks remains, he has maintained his ‘hold’ rating on the stock ‘despite the optical attractions of a full year 2021 price/earnings of 10.5 times’.

[dbaker1980] 02/7/2020 23:03

I think in the next tidy up this could be out of the 100.

[ianood] 02/7/2020 22:43

EJ - I don't think the Co is in a rut. I would agree the share price is, however, the Company's performance is good in the current climate. Much as it hurts me to say it, I think that passing on the div is probably the correct thing to be doing particularly as gearing is on the high side.

[suetballs] 02/7/2020 19:49

Drabble can't come soon enough.
Takes over as Chairman on 03/01/21.
Suet

[lyndon b] 02/7/2020 19:25

If anyone at ADVFN is reading this, the snippet above on DS Smith needs updated....their annual revenue is £6bn, not £2bn.....let's not kick a man when he is down!

[togglebrush] 02/7/2020 14:49

Heavy Trading TODAY
'
Stats for this year from 31/12/2019
Stats__________Daily Volume
'
Maximum_________19,851,210 23 March 20
NOW Today_______17 million plus so far
Onein100 day____14,746,360
Q3 High__________7,697,657
Median___________5,611,316 NORMAL DAY
Q1 Low___________4,364,723

[jeffian] 02/7/2020 14:05

#3460,
"I daresay that the well paid managers in their elevated positions do not really understand the importance of dividends from boring companies."

Well, EJ, they pay lip service to it -

"The Board considers the dividend to be a very important component of shareholder returns............... Recognising the importance of dividends to all shareholders, the Board will actively consider the resumption of dividend payment, when we have greater clarity over outlook."

[lyndon b] 02/7/2020 12:58

Back in December when they published their H1 results, their H1 profit was +30 yr on yr. Full year results out this morning was +5%. Clearly there are multiple reasons for profits not holding up to the same extent, but I was thinking overall it would have been in better shape given the increase in e commerce.

I bought in 2 days ago hoping for a continuation of their H1 results, but that never came to pass and the dividend announcement was the final nail in the coffin. Now all the analysts are predicting doom and gloom...thanks for the insight once the horse has bolted!

Final comment.....the trend was downwards just before the end of play yesterday and it did get me thinking if the news was going to be good or not.....

[ny boy] 02/7/2020 12:56

Bought a pile, just over 290p, a tad over cautious on not paying a divi but I take it as a temporary measure, onwards & upwards, a good buying pull back imo dyor as usual

[irenekent] 02/7/2020 12:49

And have the directors & senior management taken a pay cut to mirror the loss of dividend by the owners of the company? You know which way to vote at the AGM (if you are on the register of course).

Irene.

[dondee] 02/7/2020 12:44

5,000 just added.

[dondee] 02/7/2020 12:43

Down nearly 30p today, and no real substantial reason for that. I expect a reasonable bounce from here.

[dogwalker] 02/7/2020 10:25

We saw all that earlier on when the interim was axed. Most of the beneficiaries here - if we can call them that - will be ordinary citizens with pensions to try to grow & so on not just 'wealthy individuals'.
Cutting dividends for politics' sake adds to the downward spiral, of contraction & deflation. If there is a 'special dividend' it'd better be a big one.

[alan@bj] 02/7/2020 09:41

I agree with you mleedslad. A lot of companies, I suspect, feel it's politically imprudent to take the government's cash, reduce capex, lay off employees, and then be seen to fill the coffers of the "wealthy".

[leedslad001] 02/7/2020 09:36

Its all about public image. They could have a special divi when all this covid hype is over

[dogwalker] 02/7/2020 09:28

Quite so jeffian. The decision here, to axe, seems unnecessary. The future isn't so unknowable for the company not to know that it will continue to peddle cardboard enough to maintain the model its owners bought into. I think the decision to axe was a bit 'flimsy' or 'damp'.

[jeffian] 02/7/2020 09:15

#3447,

I really, really hope that they don't go down the share buyback route. Yes, I understand the argument about less shares in circulation boosting NAV and earnings per share but, time and again, that doesn't get reflected in the share price. You can't dictate to Mr. Market. The worst example recently was Whitbread which, having sold its Costa Coffee business 'returned' £2.5bn(!) to shareholders via buyback - equivalent to about £12/share I think - and the share price has slumped from £45-odd to £23.

As a buy-and-hold investor, I like dividends. They give a reason to hold on to the shares and ignore short term fluctuations in the share price.

[dogwalker] 02/7/2020 09:07

Maybe every company should stop paying dividends since it's such a wheeze to boost the share price? After the value's dropped 10 % first of course .