Smith (ds) Share Discussion Threads

[ygor705] 08/9/2020 07:59

As most sensible people anticipated, the performance of the company has proved to be resilient. That only reinforces my view that we have a senior management problem here. The last major acquisition has proved to be a disaster for shareholders and that alone should see them gone. I agree with Moorsie's comments on the dividend position which provides further evidence of management's complete lack of judgement.

[moorsie2] 08/9/2020 07:50

Don't get me wrong - I believe in the intrinsic value here being significantly more than the share price at present.

But I would also wager that if Roberts "retired" the share price would shoot up by 5 to 10%...

[moorsie2] 08/9/2020 07:45

Wallywoo - the industry knows Roberts overpaid for Europac by a large amount. Then did not raise enough to pay for it properly or put the balance sheet in a strong position. Moreover Interstate was over paid for as well as the returns coming from that have been slower than predicted, hence the poor ROCE.

Their last calendar year was affected only by 4 weeks of Covid so it is totally disingenuous to withhold a dividend for that period and blame it on Covid.
I was in agreement that it should have been delayed pending clarity on future trading. But that has now happened and trading is strong enough to say that liquidity issues are not there . so then pay the dividend from the last period! Or man up as a CEO

[wallywoo] 08/9/2020 07:41

Not sure I agree, the Europac acquisition was at £1.6B in late 2018. I know they had a £1B RI (at £3.50 per share) to help finance it, but covid has given them the excuse they needed to pay off a chunk of debt. The acquisition was ambitious but not poor imo. There seems to be great economies of scale in this industry, so once debt is under control, margins should stroll ahead.

I expect half year results will look healthy, and share price will move up to 320 resistance over the next week or 2.

[redartbmud] 08/9/2020 07:10

Absolutely.

[moorsie2] 08/9/2020 07:03

Wallywoo - yes I understand that. But their net debt has zero to do with Covid and all to do with poor return on Investment! That is a management issue 100%. It is disingenuous of them to pin the non payment on Covid when the true issue is their poor management decisions and actions.

[wallywoo] 08/9/2020 07:00

They did leave the chance of paying a divi for the fy 19/20. But when you look at the net debt creeping up, I think they have done the right thing. It has given the chance of getting net debt back under £2B, missing the final divi. They should be on a firm footing going forward.

[moorsie2] 08/9/2020 06:49

I am disappointed. They left the door open previously to backdate the previous dividend or issue an exceptional one. But all they have done is say this period will get one.

Mgt have badly messed up here over the last twelve months. People need to change..

[redartbmud] 08/9/2020 06:42

I hope it singes the backsides of the shorters, two of who have recently increased their positions.

[wallywoo] 08/9/2020 06:10

Yep this should be back over 300p, in the next few days.

[games] 08/9/2020 06:05

Decent update, and div reinstated.

[moorsie2] 07/9/2020 09:43

Trading update should be reassuring to the market and they should reinstate dividends now that SKG and MNDI have done so. Would be very disappointed if not trading in 300s rest of this week

[wallywoo] 04/9/2020 08:45

fhmktg, the odds are firmly on the side of the divi being reinstated. But it all depends on the trading statement. Will be a interesting week. I have heavily bgt in from 255-260, on the basis that will will rerate next week. Time will tell

[fhmktg] 04/9/2020 07:10

Tuesday next AGM and trading update.....time to reset dividend policy?

[moorsie2] 02/9/2020 19:30

Redar - no more so or less so than anyother share...

[redartbmud] 02/9/2020 18:32

Is the Smds share price being manipulated by algos set up by the shorters?

[moorsie2] 02/9/2020 18:12

Maybe, who knows? But I doubt a big transatlantic bid now considering the uncertainty etc...

I just think Mondi and SMDS have been overly punished and will bounce back , hence value in their present prices..

[essentialinvestor] 02/9/2020 18:00

Moorsie, quite incredible when you consider SKG has about 1 Billion more
on net debt than Mondi, also lower ROCE, earnings etc.

Perhaps a bid premium on SKG.

[moorsie2] 02/9/2020 17:55

EI - SKG has done well compared to the other big 2. Both have been hammered and look value compared to long term valuations and multiples

[essentialinvestor] 02/9/2020 17:07

Morsie, if you are around, SKG is now valued at more than £1 billion more
than Mondi?.

[moontheloon] 01/9/2020 10:16

We have been hammered since the divi decision .. Apparently theres a divi in charge

[essentialinvestor] 31/8/2020 15:50

Watched the latest Mondi corporate presentation last week, impressive.

The attraction SMDS arguably has over Mondi, is the chance of receiving a bid.

[yf23_1] 31/8/2020 15:17

UT trades bounce the price around all over the place and IMO shouldn't be included in charts.