Smith (ds) Share Discussion Threads

[philanderer] 30/6/2014 16:08

Main support looks more like 250p.

Turning into a bit of a dog.

[matt123d] 30/6/2014 15:57

Next triangle 271p

[philanderer] 30/6/2014 12:24

Like it or not , top call from Goldmans a couple of months ago with their 'sell' and 267p target.

At this rate we`ll be there by friday :-S

[philanderer] 30/6/2014 09:14

Dead money here by the look of things until Euro picks up.

GBP/EUR = 1.2467

[philanderer] 27/6/2014 20:36

CNBC interview with CEO Miles Roberts:

[matt123d] 27/6/2014 18:53

Still have some short left, looking for a small flush lower at some point Monday to shake the last of the loose longs out then there should be some sort of bounce.

[broadwood] 27/6/2014 17:02

Might consider a jump in for a wee bounce after that precipitous two day fall.

[philanderer] 27/6/2014 16:57

The Times - Tempus column today

Shares of DS Smith have risen by quite a bit since the start of 2013, but now is not the time to go short. The maker of corrugated packaging saw annual pre-tax profits leap by 104% last year, to reach £167m, thanks to the acquisition of SCA Packaging, which increased its presence in Scandinavia and northern Europe. That transaction has met almost all of its financial targets, in terms of increasing organic sales, returns on sales and cost savings.

Furthermore, the stock's pay-out is set to track growth in earnings per share. Those are expected to grow by between 15% to 20% per year as additional cost savings kick in. For some analysts the current premium in the share price relative to the sector is only justified by further M&A, but at 11.5 times' this year's earnings and on a forward yield of a little more than 4% the stock remains a long-term buy, even if further progress may be slower.

[philanderer] 27/6/2014 13:28

DS Smith : * UBS cuts target to 340p from 357p - 'Buy'

updated:

27th june UBS buy tp 340p
27th june Davy underperform -
27th june Canaccord buy tp 370p
27th june Citigroup buy tp 350p
26th june Jefferies hold tp 335p
26th june JP Morgan overweight tp 367p
26th june Investec buy tp under review

[matt123d] 27/6/2014 13:07

Maybe worth noting to those buying that it's a new quarter and month on Monday.

[phillis] 27/6/2014 12:59

Davy were negative but they have always been close to Smurfitts - the Irish Mafia

[philanderer] 27/6/2014 10:26

Telegraph 'buy' article today:

Questor share tip: DS Smith a buy as profits double

The recycled packaging maker has benefited from "particularly strong" volume growth in Central Europe and Italy, but a weak euro could hurt future earnings

DS Smith
287.3p-18
Questor says BUY

It has been a strong year for DS Smith, the recycled packaging maker whose customers include Procter & Gamble, Nestlé and Unilever, which has reported a doubling in its pre-tax profits.

The FTSE 250 company saw its profits rise 104pc to £167m from £82m in the 12 months to

April 30, on revenues of £4.03bn, up 10pc from £3.7bn. Volumes grew 2.2pc ahead of the rest of the corrugated packaging market, in which it specialises, which was ahead of its target of 1pc.

The company said it has benefited from "particularly strong" volume growth in Central Europe and Italy, where it has won new customers and expanded services to existing clients.

Revenues were also boosted by Swedish packaging firm SCA Packaging, which DS Smith acquired in 2012. The latest results included 12 months of earnings from the Swedish company, compared with 10 in the previous year.

However, despite the jump in profits and revenues the shares fell 5.9pc yesterday after the company warned that results in the coming year could be restrained by a weaker euro and conditions in Europe, which it sees as remaining "challenging". DS Smith manufactures recycled cardboard boxes that are used to hold products such as washing powder and tinned tomatoes, on supermarket shelves.

DS Smith's fortunes are therefore linked to the sales of consumable products, or
fast-moving consumer goods.

"These results have been achieved despite economic conditions across Europe remaining challenging, with the significant pressure on household budgets affecting the entire supply chain," said Miles Roberts, chief executive.

The company generates about 65pc of its earnings in euros and more than 70pc of its revenue comes from outside of the UK.

DS Smith said a change of one euro cent in the pound/euro exchange rate affected pre-tax profit by about £1.2m.

Justin Jordan, analyst at Jefferies, estimated a 3pc to 4pc hit in the current fiscal year due to the strong pound, while maintaining a "hold" rating on the stock.Thomas Rand, analyst at Investec, said he expected the euro weakness to trim roughly 2pc of its forecast for earning per share, but said DS Smith remained a "top pick" for the year and maintained his "buy" rating on the stock.

Overall, the current financial year has "started well" and is in line with expectations, Mr Roberts said, despite anticipation that the "difficult consumer economic environment" will remain.

However, there are encouraging signs coming out of mainland Europe.
In the latest set of Purchasing Managers' Index (PMI) data from the region, "peripheral" Europe - including the countries that were hit the hardest by the global financial crisis - saw output accelerate and growth was at the strongest since August 2007. Across the whole of the eurozone, new orders showed the largest increase since July 2007.It is also worth noting that the company has raised its dividend again, up 25pc to 10p for the full year.

While the road to recovery in Europe and the UK may not be smooth, the encouraging manufacturing data and strong dividend growth make for a compelling investment.

Questor maintains its Buy rating.

[philanderer] 27/6/2014 10:24

Agree Ed, good value here for a well run company with good management.

In the price now..

Daniel Coatsworth ‏@SharesMagDan 2h

Davy slashes forecasts for DS Smith, Mondi, Smurfit Kappa because of weak containerboard prices & risk of lower corrugated prices

[ed 123] 27/6/2014 09:59

Bought at 283p.

Of course it may go lower, but this looks a good entry point and I can be very patient.

[philanderer] 27/6/2014 09:55

Canaccord reiterating today - still no sign of a Goldmans update of their 'sell' tp 267p from may 16th yet.

updated:

27th june Canaccord buy tp 370p
27th june Citigroup buy tp 350p
26th june Jefferies hold tp 335p
26th june JP Morgan overweight tp 367p
26th june Investec buy -

[philanderer] 27/6/2014 09:48

Exactly the same thing happened to Croda CRDA with their results on tuesday, citing the same currency worries, then suffering a 10% shareprice correction.

[emeraldzebra] 27/6/2014 09:46

i have hung on in there. and remember they were in the 3.50 region not so long back.

[philanderer] 27/6/2014 09:36

I`ve bought back another 10% at 282p that I sold yesterday morning.


SMDS has dropped nearly 11% in just seven days now.

[emeraldzebra] 27/6/2014 09:09

no, i would think the chances of a rise now are greater than a fall. expect a level out to about 3.30-40 in the medium term.

[matt123d] 27/6/2014 08:50

Have triangles at 280p and 272p now.

[philanderer] 27/6/2014 08:38

Chartwise 271p is now the next support - which was around Goldmans target.

If that goes 240p seems to be the next stop.

Reiteration today:

27th june Citigroup 'buy' tp 350p

[lateralam] 27/6/2014 08:26

I've been invested here in the past and the thing that always annoyed me was despite how solid the company is, how susceptible the share price is to currency fluctuations. The pound is quite strong right now. You've also got to think, where do they go from here? 104% growth is phenomenal so all the good news seems priced in. I'm not invested at the moment but the drop seems a bit overdone, so it's back on my watchlist.Well done to all the long term holders, I sold way too soon.

[philanderer] 26/6/2014 20:32

Investors Chronicle:

"Packaging specialist DS Smith (SMDS) enjoyed a strong performance in the year to April, boosted by the acquisition of SCA Packaging. Revenues rose by 10 per cent to £4bn and pre-tax profits more than doubled to £167m. Buy."

[philanderer] 26/6/2014 20:28

Financial Times

'Strong pound crumples shares in cardboard maker DS Smith'

....It plans to open three factories in Europe and one in the US towards the end of this financial year. It expects the biggest growth opportunities to come from central and eastern Europe, and in the recycling packaging market.

full article:

[philanderer] 26/6/2014 20:19

Totally agree Martin.

Best guess is that a broker / bank has been selling heavily today and will bring out a sell note imminently - they may even have told their clients today what`s happening.