Smith (ds) Share Discussion Threads

[alan@bj] 14/7/2020 17:08

Directors snouts in the trough.

[dondee] 14/7/2020 16:57

Bought and sold this share yesterday and did the same today. Both bath style in day charts. I can't do this every day of course and not always once in a week sometimes, but a great start to this week.

[fhmktg] 14/7/2020 13:57

Then there is the opportunity for 'paper bottles' for booze as featured in the press today, for wine and spirits.....Pepsi thought to be interested as well.....

[dondee] 14/7/2020 11:11

They keep churning out thousands of various sizes of cardboard boxes and other stuff that the ever increasing number of delivery vans entering my street bring all day every day, and that isn't going to change any time soon with the bricks and mortar high street retailers in their downward spiral.

[ygor705] 13/7/2020 14:43

I do not disagree with any of the previous 3 posts. SMDS looks to be a good company but my concern after the dividend cancellation is that our CEO looks to be more fitted for Whitehall than running a business. Perhaps we should give Dominic Cummings a call?

[2vdm] 13/7/2020 06:59

Agree DogW and Tom89. Happy to add on dips with a L term view

[dogwalker] 11/7/2020 17:19

I agree with ygor705 about the silly divi cut.It undermined the company by giving out a mixed message.
I like Tom89's technical take in the post above, too!

[tom89] 11/7/2020 10:50

A debacle; my goodness, what do you know? The low on 23rd March was 245. The low yesterday was 264.5 before the bounce creating a doji hammer (reversal signal that requires confirmation). The average volume before the gap down was about 5M/day. From 2nd July the average volume was about 17M/day. Aviva have increased their holding by almost 10M. I think we will see a reversal from here so I continue to hold. Producers of all sorts of goods will be forced to change their packaging to a more environmentally acceptable material and I think SMDS are well placed to satisfy this need.

[ygor705] 10/7/2020 14:08

Having looked at the results, I am very disappointed with the dismissive way that the lack of a dividend has been handled by the management and the judgement of the management in dismissing the dividend in the first place. Our Board seem to have got themselves into the mindset that equity can be conjured up at zero cost and that it is infinitely better to raise large slugs of it rather than debt. Others have commented on executive rewards/remuneration and in my view the Board should be taking a pretty hefty pay cut after this announcement. Investors have long memories and I certainly won't be forgetting this debacle any time soon.

[lyndon b] 08/7/2020 20:11

It seems the correction has already taken place and will be helped by China closing their doors to imported waste by the end of the year. More supply and less demand...happy days!https://www.letsrecycle.com/news/latest-news/waste-paper-markets-see-sharp-correction/

[scooo] 08/7/2020 18:05

The market was right to anticipate a good outcome from online activity, but greatly underestimated the knock from declining sales into a Covid ravaged industrial sector. The industrial sector was in turmoil in March and April but is now coming back and will restore further as Covid recedes. The downgrade is overdone.

[rhuvaal2] 08/7/2020 15:24

shares up today :))

[dandu69] 08/7/2020 11:31

Thanks for the posts, I`m a holder here and have no plans to sell anytime in the near future. gla.

[muzmanoz] 08/7/2020 08:46

Thanks for that Lyndon. The transcript of the investors call is available on the companys website in case people had not seen it.

[lyndon b] 08/7/2020 08:26

Reading the annual results there, their hesitation on the dividend was due to the double whammy of the paper sales price being low and probably more pertinent, the old corrugated cardboard (OCC to those in the know, not me)cost went from £20/mt in March to £70/mt in May.

You might not think that is a lot but SMDS BUYS 330,000mt OF OCC A MONTH!!! That was a £15-20m hit a month and was caused by recycling centres being closed.

If you can track OCC prices (there are some news stories available from searches, but most indexes are subscription only) then it will give a strong insight into the financial success of this company.

Thankfully the OCC price went back down to £50/mt in June, so the trend is right.

On the paper front, their US production facility will reduce their exposure to paper sales by 2/3.

The exact words of Miles Roberts on the annual call was "we can commence paying dividends, again, at any time"

Tick tock.....

[2vdm] 08/7/2020 06:59

I aagree leedslad and pkstrough. SMDS is well managed and will weather the current storm.

[leedslad001] 07/7/2020 13:22

Better sell then! Don't think so let's see what next year brings very comfortable with my holding

[husbod] 07/7/2020 12:57

Caused by weak demand from industrial customers the DT states enormous. Not entirely surprising given that most of them have probably been shut for a few months. This is a medium term buy for me although with Wuhan flu around we're all guessing to some degree or another.

[enormouswillie] 07/7/2020 12:42

Daily Telegraph says SELL, not least because revenues from non-online businesses are declining sharply and they make up 75% of revenues currently.

[peaksntroughs] 07/7/2020 11:21

Private equity might be interested here. E commerce is only going to grow and cardboard packaging is not going away anytime soon. PE don't have such a risk averse attitude to debt. I have a big holding here and am well down on my average but will sit tight with a longterm view. This will either come good again or get taken out. Just need to sit tight until it happens, albeit without the dividend to sweeten the current paper loss.

[marshyallan] 07/7/2020 08:43

As a shareholder the name of the game is averaging a sit tight.
The removal of the dividend allows reduction in gearing or dormant share buyback
So it’s a wait until late 2020 to finally judge if this company respects its shareholders, from pensioners to high flyers!

[yf23_1] 06/7/2020 19:53

Hammer bottom on the candles - a decent enough sign.