Smith (ds) Share Discussion Threads

[fairtrader66] 22/8/2020 09:18

They just sold the plastics business and invested in US plant & equipment which should pay off (ROCE). I think they are perfectly positioned to move quickly (even though a billion £ operation) out of the Covid period. Some big and carefully thought through positioning and impact already made. Capitalising on this foundation through continuity of senior management is a more than valid way forward also.

[redartbmud] 22/8/2020 08:12

ygor

Very good point.
I thought that the new chairman of Marstons would be that man, but I have become very disillusioned in that direction.
At his first AGM, he made all the right noises about debt reduction. That should have been the first 5 items on the agenda for every board meeting, but he has sadly failed to deliver. The next item was getting rid og the CEO and FD, but the outgoing NED in charge of the remuneration committee has merely relaxted the already soft remuneration targets!!
And so it goes on, and on and on.

As a recent shareholder to this business, it would appear that a major overhaul of senior executives is well overdue.
Let us give him the time to review and change the business strategy and management, but not too long.

[ygor705] 22/8/2020 07:59

I think that you are missing the point FT66: anybody, even multi-multi nationals, can run what looks to be an excellent business. The trick is to make a proper return out of it and this is where DS Smith has been sadly lacking (see Moorsie's comments below on poor ROCE etc). The new Chairman is ex-Ashstead which is an out-and-out growth company. Unless he does something quickly to sort out this Board I will be looking for the exit door.

[fairtrader66] 21/8/2020 18:14

I'm actually quite impressed with the board's business plan. It's a well crafted strategy

[fairtrader66] 21/8/2020 16:56

Recycle the board. They're thinking in nothing but box's right now

[moorsie2] 21/8/2020 12:15

But their ROI and ROCE have been terrible.

Time to stand aside and hand over the reignstonew management. Chairman changing at the end of this year . The CEO must change by end of Q1 2021

[fairtrader66] 21/8/2020 10:00

They have been managing their margins, on paper, well

[essentialinvestor] 20/8/2020 20:12

Appreciate the reply,many thanks.

[moorsie2] 20/8/2020 19:44

EI -

Outlook would appear to be relatively stable from this point as long as demand does not drop further.

Moreover the spread in price of recovered paper to price of containerboard is still very favourable to the big 3 so I would not be surprised to see the usual seasonal improvement in stock valuation from now to Dec ( look at the charts for this period over previous years)

[essentialinvestor] 20/8/2020 15:50

Added some more Mondi before the close, unfortunately it's not in the FTSE
Green index, SMDS and SKG are both constituents. This area will be increasingly
important to inventors over the next few years.

[fairtrader66] 20/8/2020 14:59

Haha.. there was a palpable dip. Profit margins are also currently paper-thin.

[cousin jack] 20/8/2020 14:33

Whoops forgot the link !

hxxps://www.euwid-paper.com/news/singlenews/Artikel/german-recovered-paper-prices-drop-again-in-july.html

[cousin jack] 20/8/2020 14:32

Thanks Moorsie. The link below gives a bit more information - I am reassured to see it also talks of stable prices in August and good demand from the paper industry.

[essentialinvestor] 20/8/2020 12:59

Moorsie, you clearly read the trade press, do you have a view on potential
further weakness hitting the sector this autumn, thanks.

[essentialinvestor] 20/8/2020 12:53

Appreciate the inside track. Added a few Mondi on the XD.

[moorsie2] 20/8/2020 12:47

France and Germany markets showed a 20 euro per ton reduction in testliner prices this morning. This is the reason.

[leedslad001] 20/8/2020 12:14

Shorters at work

[cousin jack] 20/8/2020 12:01

Thanks EI. I’ve added as I remain confident about medium term prospects. And well done on your Derwent trades - very well timed.

[essentialinvestor] 20/8/2020 11:41

Jack, sector often tends to be disproportionately hit on risk off days.
There is a lot of press comment on COVID cases rapidly escalating in
multiple Europe countries again - what's not mentioned is hospital admissions
numbers remaining low atm. Hopefully that continues.

[brassgemini] 20/8/2020 11:36

I agree its extremely odd. I have searched for any kind of chatter on why this has happened and for such a hugely traded share its also odd that there is very little discussion on any investment site forum boards in general for SMDS. I might average down today

[cousin jack] 20/8/2020 11:29

I continue to be puzzled at the way this moves. Down 5% today for no clear reason and after seeming to firm recently. Perhaps some investors are reading across from the Mondi fall - but that is mainly due to it going xd.

[fairtrader66] 19/8/2020 12:57

Any billion £ business which has a strong enough balance sheet to weather this pandemic is okay in my books. This is a good buy which has a good business plan for capitalising on current and future industry/social trends and will be able to boost, at scale, out of the tail-end of Covid.

[ygor705] 19/8/2020 07:12

Quite a good spread of comment on this Board now. Looking at the stats on this company (dire), brings me to the conclusion that there has to be some kind of shareholder reaction to what has been going on. The management is incredibly poor in my view and it is clearly there for all to see. There has been an over dependence on equity to fund acquisitions and a generally overly-conservative approach to the management of the business that has totally screwed the interests of the shareholders. Yes the company operates in a cyclical industry but within that there is a discreet growth element driven by the growth of internet selling. Where is that reflected in the performance of DS Smith? The possibility of a private sector buyout has been mentioned on this Board. How is that going to help the interests of long suffering shareholders? We are here to enjoy the benefits of a growth sector ......the Board must go!

[essentialinvestor] 18/8/2020 20:16

I think you sound like a complete c*nt. No question.