Reckitt Benckiser Share Discussion Threads

[sojourno] 15/2/2004 19:59

From The Telegraph (Money) 15th Jan 04

Keep buying Reckitt Benckiser

We last tipped Reckitt Benckiser, the household cleaning products group, at £11.07 in August 2002. The shares have since risen to £13.48. Last week the company posted a 21 per cent rise in pre-tax profits to £660m for 2003, thanks to a strong performance from key brands, including Dettol and Harpic.


The business is throwing off so much cash that Bart Becht, the chief executive, has around £1.3bn to spend on acquisitions despite Reckitt's commitment to buy back up to £150m of its shares each year. Becht has also set Reckitt the target of growing sales by at least 5 per cent in 2004 and reckons the group can deliver a double-digit percentage rise in profits.

With the shares trading at 14 times earnings, Reckitt is still cheaper than its US rivals. Keep buying.

[sojourno] 13/2/2004 21:17

From Digital Look:-CURRENT FORECAST FIGURES       EPS (p)EPS Growth (%)P/EPEGDividend (p)Dividend Yield (%)Year Ending Dec-0366.40p17.77%20.31.1427.61p2.08Year Ending Dec-0474.77p11.97%18.031.5130.43p2.29Year Ending Dec-0582.68p11.20%16.31.4634.21p2.58  Profits (35>Profits (£)Sales (£)Sales/Share (£)Price/Sales per share Year Ending Dec-03£468m£3,807m£5.402.46  Year Ending Dec-04£527m£3,967m£5.632.36  Year Ending Dec-05£583m£4,160m£5.902.25  COVERING BROKERSWilliam De Broe, WestLB Equity Markets, Deutsche Bank Research, CA Indosuez Cheuvreux, Panmure, Morgan Stanley, Schroders Salomon Smith Barney, UBS, JP Morgan, ABN Amro, ING Financial Markets, Dresdner Kleinwort Wasserstein, Merrill Lynch, Investec SecuritiesFORECASTS AND RECOMMENDATIONS - TRENDS       current1 week ago1 month ago3 months ago6 months ago1 year agoNumber of Brokers1515161407Sales (£ million)      Year Ending Dec-04£3,967£3,997£4,003£3,978£3,997£3,891Year Ending Dec-05£4,160£4,179£4,182n/a£4,179n/aEarnings (p)   ;   Year Ending Dec-0474.77p74.31p74.31p72.68p74.31p70.00pYear Ending Dec-0582.68p85.27p83.58pn/a85.27pn/aDividend (p)   ;   Year Ending Dec-0430.43p30.51p30.45p30.38p30.51p27.21pYear Ending Dec-0534.21p33.91p34.01pn/a33.91pn/aRecommendations     ; Strong Buy766603Buy434202Neutral466602Sell000000Strong Sell000000Average Rec87.57.57.507.86       

[aposto] 13/2/2004 10:46

Now these recommendations do make sense! I would like to know based on what but I would also like to know who the h... is listening to them anyway!

[a4] 12/2/2004 11:37

Goldman Sachs and JP Morgan today gave an price target of £15.

[brain smiley] 11/2/2004 14:59

Broker opinion appears to be mixed.

Barclays,Cazenove and Panmure say hold...but Investec and CSFB say buy.


Aposto

I agree with you,it seems as all the news is in the price.

[a4] 11/2/2004 13:50

my believe is based on broker upgrades, price target of £15 plus and share buybacks. however i do agree it will eventually drift down.

[aposto] 11/2/2004 10:52

Were do you base your belief that it can go to £14? The results are now out and they do not seem more significant than the current evaluation will justify. Personally I think it will now simply drift lower as a whole without any momentum by itself to do something different than the overall market.

[a4] 11/2/2004 09:52

i believe it still has momentum behind it. i can see it going up to £14, but not £15 plus.

[brain smiley] 11/2/2004 08:30

Results as expected,apparently.RB.is supposed to have outlined what the results would be in November at a briefing. Any guesses were we go now ?

Next years forecasts don't look that great...sales 5% and profits low double digit...compared to sales this year of 7% and sales of 20%.

Can't see any broker opinion yet.

[21tigers] 06/2/2004 20:56

Gradient you can make money on RB. long or short
at the moment its a great trading share ( make hay while the sun shines)
Good trading

[kaffee] 06/2/2004 20:55

Shorts in the airing cupboard and ready to be donned next Wednesday then.

Cannot beleive they will surprise to the upside but the broker upgrade has sucked a few buyers in before next week.

Looking for a quick push to £14 now and then I'll smack it in the chops !! ;-)

[gradient] 06/2/2004 20:45

results out next wednesday.

this one can go higher if the shorters have to cut their losses and activate their stops.

[a4] 06/2/2004 09:49

bailed out with a massive loss, couldn't take it anymore. Got a new price target of £15.40 this morning,. too much upside. good luck to all who are still short.

[21tigers] 05/2/2004 20:46

Covered 2 shorts today on RB. +11.6 & +10.6 awaiting
next entry point.
How high can RB. go before we get a good pull back that sticks?????????????

[a4] 05/2/2004 16:47

The ratio of buy to sell was 1/2, sellers outnumbering buyers but still ended flat. What will it take for RB's share price to fall?.

[ps499] 05/2/2004 12:25

bouncing off 1338 levels which is acting as support.Nededs to break through this and we could see 13.00 levels very quickly

[a4] 05/2/2004 09:30

Risen again this morning on very light volume. Where are all the sellers?.

[onlyme] 04/2/2004 17:24

-- aposto

There is a great free PC Program that works out SPAN Margin, for UK Shares and Options and Futures.
I would be well in trouble with Margin, and don't know how people trade without knowing what their Margin is likely to be!!

You can download the Program from the people who set the SPAN Margin...
The London Clearing House:


Difficult to understand at first!

Good luck

[aposto] 04/2/2004 17:17

onlyme

I have to say that at least from margin point of view all these deals should not be heavy at all. I am always getting caught out with margin issues. I have nibbled some June 1400 when it went to 1357. I already have few April 1350s. My target of around 1350 was fully realised. Lets see what is around the corner. The problem with this one is that we have not got the results out of the way as yet.

[onlyme] 04/2/2004 16:49

-- Hectorp

Hi!
That trade incurs margin but I like the no downside loss potential of these sorts of Time Diagonals.
It's not alone either, I have the 1200/1250 & 1300/1350 and some sold Puts.
If RB. continue to rise I will add the 1400/1450 too.
If RB. drop some, I'll add to the Put side.
Plenty of time!

Good trading.

[a4] 04/2/2004 16:45

Quite a few big sell orders went through after the close of bell. Is there any significance?.

[hectorp] 04/2/2004 16:32

Mr Only - an interesting and inexpensive trade. I'll see how its doing for you in a couple of days
cheers
Hector

[onlyme] 04/2/2004 13:24

-- aposto

It's difficult to say how much I would make at June expiry
because of the changes in Implied Volatility that may occur
to the Sept Options.
Plotted on a chart the Max Profit is at 1350.
Profit would be around £1,300 if closed then.
Profit range is from zero to 1420 ish.

[aposto] 04/2/2004 13:03

So obviously you think it will go up.

Out of interest, how much do you think you will make if at June expiry the price is 1380. I usually do a covered writing like that but on the same month, so I realise some gain upfront. However if during June expiry the price was 1380 I will be loosing that initial gain.