Smith (ds) Share Discussion Threads

[wynmck] 06/7/2020 19:08

was downgraded to Hold by Jeffries today

[husbod] 06/7/2020 17:32

Thanks again ej - a useful site to know about. Won't look at it too often as the word short and my blood pressure don't get on well. In this Wuhan flu world the blond bomber could do no better than banning shorting...... permanently......... imo but then I have this rather naive view that the stock market is not fundamentally a casino.

[scooper72] 06/7/2020 14:10

Seems pretty much being held back in the low 280s. Looks like it will take some serious buying to get it back over 300 and probably a few people trying to short it.

[leedslad001] 06/7/2020 13:58

Yes they do

[redartbmud] 06/7/2020 11:05

I would imagine that Amazon has negotiated a very good price for the contact, but volumes must be very good for DS Smith.

[husbod] 06/7/2020 10:50

Think and hope you might be right red - just ditched an underperforming uranium share (the future is not nuclear I suspect) and bought in here.Have to say that judging by the number of cardboard boxes that have arrived in my porch over the lockdown I am amazed these shares aren't flying. Does DS supply Amazon by any chance or do they own their own cardboard facility?

[redartbmud] 06/7/2020 10:00

Yes, I am not crowing now, on the timing of my entry.
Analysts have it by the throat, for now, but as EJ says, a purchase in the mid 285's may prove to be an opportunity taken, sometime down the track.

[lyndon b] 06/7/2020 09:15

Suet....totally agree.

Profits up 5%....nice job, especially during these times.

What do you mean you are not even paying a small dividend!??....oh... share price down 15%.

Well done, Great Job.

[solarno lopez] 04/7/2020 11:29

You cant beat the analysts !!

[scooo] 03/7/2020 21:50

UBS today reaffirms its neutral investment rating on Smith (DS) PLC (LON:SMDS) and cut its price target to 320p (from 335p).

JP Morgan Cazenove today reaffirms its overweight investment rating on Smith (DS) PLC (LON:SMDS) and raised its price target to 340p (from 330p).

[jeffian] 03/7/2020 15:27

It's a 'core holding' for me too. I moved here when I was reluctantly forced to sell my RPC shares, one of my largest holdings, and reinvested half those proceeds into SMDS - one reason being the dividend! Still, as you say, it'll come back one day.

[jeffian] 03/7/2020 12:09

"As I posted before, will they take the opportunity to rebase dividends, as the bank base rate is so low."

And as I have posted before, it is a huge mistake for companies to think they can 'set' the yield on their shares. The market decides that. Famously, many years ago when Aviva was Norwich Union, they objected to having a 6% yield when their peer group was on around 3% so they announced that they would be "rebasing" their dividend in line with the others. They halved their dividend....and the market halved their share price so the yield was still 6%!

[redartbmud] 03/7/2020 11:55

More interesting will be the coupon they attach, when dividends resume.
As I posted before, will they take the opportunity to rebase dividends, as the bank base rate is so low.
There is an argument that tge risk/reward ratio of dividens on equities is currently disconnected from that of cash. Agreed, real cash returns are currently negative, taking into account inflationn, but they aren't likely to recover anytime soon.
In a worst case scnario, if the economy tanks and the banks incur significant losses through the 20% part of hasty loans issued as a result of Government demands, the banks' capital may be constrained. Better to have your own supply of cash, than be dependant on meagre handouts from that quarter.

[scooper72] 03/7/2020 11:40

Seems to all depend on whether one is a half glass full or a glass half empty sort of person. Not really where one wants to be when looking ahead. I think I will be hanging on for now but maybe put in a stop loss.

[jeffian] 03/7/2020 11:11

"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."

Although they have become unfashionable since being taxable like ordinary dividends, scrip dividends might be a way of rewarding shareholders whilst conserving cash.

[scooper72] 03/7/2020 10:59

Patrick Hoskin in The Times business section commented that it was unfair and irrational for the market to react the way it did yesterday to the lack of a div. seemed to generally give the company the thumbs up while saying they could have given less of a mixed message about what the future plans are for the div. but like many he doesn't see cardboard packaging facing a decline in demand