Mondi Share Discussion Threads

[redips2] 08/8/2014 09:56

Looks OK phil GL .

[philanderer] 08/8/2014 09:40

Oh, I`ve gone and done it , added at 981p :-)

[redips2] 08/8/2014 09:26

Appears to be top faller .

[redips2] 08/8/2014 09:22

Finding it v tricky to work out timing buys with all this geopolitical sh*t going on . Hey ho ---- morning lees :)

[enami] 08/8/2014 09:20

Downside target 947.5 if wave C=A. Wave B was 61.8% of wave A. Could well occur in ex dividend phase.

[leeson31] 08/8/2014 09:18

not sure mate.. euro zar graph above.. nothing massively changed.

[philanderer] 08/8/2014 09:07

I can`t work out why MNDI is the top faller in the FTSE100 this morning.

Is it a S African thing ?

[leeson31] 08/8/2014 09:06

between 960-970 id buy some..

[leeson31] 08/8/2014 09:03

down around 10pc in 10 session.. technically over sold.... most stocks are liek this, cheap PE's, id expect a technical bounce at the least .

[gbb483] 08/8/2014 08:48

It's broken out of the closing wedge by going down - 960 now the support level.

[leeson31] 08/8/2014 08:39

morning fellas. classic case of macros over riding charts. certain in bargain territory, just a case of timing for being optimum!

[redips2] 08/8/2014 08:37

morning---looking to maybe re-enter---watching and waiting .

[philanderer] 08/8/2014 08:34

Now the chart does look bad.

Morning all.

[philanderer] 07/8/2014 13:39

just in ..

7th august Jefferies buy 1325p

reiterates

[leeson31] 07/8/2014 13:08

spike emerging on the candle chart, looking encouraging so far for a support level to have emerged.. cheers

[philanderer] 07/8/2014 12:38

7th august Credit Suisse outperform 1215p

reiterates this morning

[leeson31] 07/8/2014 11:07

cheers Phil!

[philanderer] 07/8/2014 11:05

Many thanks Lees. I`m holding tight to these :-)

Here`s Davy:


Mondi

Reports growth in H1; strong cash flow supports higher dividend and capex; positive outlook as price increases announced

August 7 2014 Morning briefing

SECTORS: Paper & Packaging

COMPANIES: Mondi

DAVY VIEW

Mondi Group reported solid growth in its H1 profits, driven largely by its Packaging Paper and Fibre Packaging businesses. Its Consumer Products and Uncoated Fine Paper divisions continue to disappoint. Containerboard price increases announced by the company should help to drive further momentum in earnings despite the weaker divisions. Combined with on-going strong cash generation, this informs our 'Outperform' rating.

H1 results ahead of forecasts as Packaging Paper division and South Africa outperform

Mondi Group reported H1 EBITDA of €553m, in-line with our €554m forecast, and underlying operating profit of €377m, 3% ahead of our €366m forecast and 3% higher than the same period last year. Underlying EPS of 51.9c was 5% ahead of last year, and the company increased its interim dividend by 39%.

The Packaging Paper division recorded a strong performance with EBITDA of €209m, well ahead of our €176m forecast, driven by 2% growth in containerboard demand and recycled containerboard prices which were 10% ahead of the same period last year.

Performance of the Fibre Packaging division, which includes the corrugated operations, was also ahead of last year although slightly behind our forecast.

The South African division also continued to perform strongly. The Consumer Products business reported EBITDA of €60m, below our €64m forecast and the €63m reported in the same period last year.

This includes the Nordenia businesses, acquired in 2012, which have not performed as well as expected. Management indicates that performance is not expected to improve in the short term given the difficult trading environment.

The Uncoated Fine Paper business was also below forecast, suffering from lower volumes and selling prices.

Strong cash generation supports growth in dividends and capex

The generated cash from operations of €439m in the period represent a conversion from EBITDA of almost 80%.

This on-going strong cash generation is presumably the main driver of the 39% rise in the interim dividend and also the further increase in capex guidance to €550m from €500m for the next couple of years.

Outlook positive as containerboard price increases announced

The outlook, while vague, is reasonably upbeat.


Management confirmed plans to increase recycled containerboard prices by €60/tonne in August and kraftliner prices by €40/tonne in September. This announcement clearly raises the probability of the industry being successful in its attempt to increases prices and will continue to drive profit growth for Mondi Group.

[leeson31] 07/8/2014 10:15

actually, about 980-960p for area of support:

[leeson31] 07/8/2014 10:13

bit sever drop eh, given the vols so far:



IF it reverses today, it'll leave a short term double bottom on the daily candle chart... IF it doesnt reverse today and closes ~999p or less, then probably ~950p on the cards.

its on about ~15 x last FY earnings, but given that earnings this current Fy are up ~5pc at the half-way stage, id say the PE is probably now about ~14 x

Historically this sector has enjoyed mid/high PE's...

"Half-yearly results for the six months ended 30 June 2014

Highlights

* Steady improvement in all key financial metrics

*
+ Underlying operating profit of EUR377 million, up 3%

+ Underlying earnings of 51.9 euro cents per share, up 5%

+ Cash generated from operations of EUR439 million, up 2% "



cheers

[philanderer] 07/8/2014 10:08

Not able to hold 1000p.. looking a bit iffy now... 4 month low for FTSE100

Lees , would next support for MNDI be around 970p ?

[enami] 07/8/2014 07:34

The interim dividend of 13.23 euro cents will be paid on 16 September 2014 to those shareholders on the register of Mondi plc on 22 August 2014.

XD 20 August

[philanderer] 01/8/2014 17:29

Could have been worse I suppose. Big chart looking ok :-)

[philanderer] 01/8/2014 09:37

Jeez , I`ve nearly had enough of this. And this with a profits upgrade a few days ago as well !! :-S

[philanderer] 30/7/2014 20:58

Thanks for that Lees.

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Mondi Plc (LON:MNDI)'s stock had its "outperform" rating restated by Credit Suisse in a research note issued on Wednesday. They currently have a 1215p price objective on the stock.