Reckitt Benckiser Share Discussion Threads

[pkvidean] 22/2/2002 16:23

Thats the intra-day high it reached earlier today!

US appears OK at the moment and, according to Teletext, there are no major corporate announcements due today. Think it will only take one more "upset" for the, though. Do RB. sell Condoms (no SSL) because I feel like I am using it for protection! IMRO.

[mayjuli] 22/2/2002 15:54

A strong rise today. up 30p at 1135 last time I looked. Getting very close to the 1140.5p level. Where does that figure come from pkvidean?

[pkvidean] 22/2/2002 13:49

In this market, I reckon 1140.5p could be the pinnacle (for H1 2002). I'm afraid even RB.'s defensive attractions will not cut any ice once the Dow starts to collapse. Longs - suggest you take your profits now. I've gone short again as the upside seems limited and the downside could be large! IMRO.

[pkvidean] 18/2/2002 00:43

1111.5p and starting to look a bit posh! Reckon you guys need to wait for about 1175p for your optimum initial entry level. Me, I'm unlikely to be able to afford it - having been severely damaged by the anti-growth spiny gardening club!

[pkvidean] 12/2/2002 23:12

RB. closed @ new 4ish year high of 1100p. Looks like there;s still a fair bit left in the tank! IMRO.

[pkvidean] 31/1/2002 22:22

mayjuli,

Yes, ranked about 40 in FTSE100. RB. already touched 1090p on 24/01 and I feel confident this will go higher. Proctor & Gamble beat expectations in US and consequentially today's 1019.5p may be a new base with a 12% mini-rally to follow. That would take it to 1141.75p which would probably be a good initial entry point for a short. I must confess to pulling out of this one a few days back, as it is far too dangerous, especially in a defensive mini-bubble environment. IMRO. DYOR.

[mayjuli] 31/1/2002 16:53

pkvidean

Thanks for a good reply. I'm sorry you feel a little lonely on this BB. For a large company RB keeps a very low profile. I take it that with a capitalisation of over £6Billion that it's in the ftse100.
I'm an amateur chartist, (if I made money I could call myself a profesional) and I think it will not rise above it's 1070 level achieved a few days ago.

[bigbrother] 28/1/2002 11:43

Where is this share heading ?

anyone

[pkvidean] 26/1/2002 17:44

Colgate/Palmolive up 52 cents, to -08.6% short of high.

[pkvidean] 26/1/2002 04:09

Pseudoname

I'm averaging about 2.5 "investments" on about 27 companies and view that as an operational necessity!

Depends on the level of stake, I suppose. Reckon one way of doing it is to think about the highest it could possibly go from your initial interest level and divide your pot into say 4 equal chunks at strategic points leading to the projected super-high e.g. 1050p, 1150p, 1250p, 1350p etc. etc.

Bottom Fishing (my preferred strategy on Longs) becomes Top Fishing! Not good for instant returns, however!

Do not like the momentum thing as valuations tend to become skewed!

IMRO

[psuedoname] 25/1/2002 14:06

I actually closed one of my shorts 1043 at a loss. The other remains open. I closed the 1044 bet as the price looked to be accelerating upwards and two bets for me on the one share (which is new to me) starts to get worrying.

Chartwise the RSI is high and its at its 12 mth high too. Stochastics also look due to fall.

My view for what its worth

[pkvidean] 25/1/2002 06:16

Can I have some company please?

Anybody else got a 2002 target for RB.?

[pkvidean] 24/1/2002 19:33

Thats the 3.5 year high (1090p) out of the way then!

[pkvidean] 23/1/2002 04:56

mayjuli,

Back in 1998 Reckitt & Colman (as RB. used to be called) registered a high of 1300p (its pedigree!). Business must have been poor as on 22/01/1999 it had descended to 716.5p, giving a capitalisation of 2,916m (currently capitalised @ 6,663m). Later on that year it merged with Dutch company Benckiser and hence the RB. we know today.

Acquisitions and mergers tend to distort a company's share price so I considered it necessary to determine what the 1300p equated to in today's money. This had to take into consideration the value of Benckiser at the time of the deal and the overall capitalisation after the merger. My research, albeit far from perfect, led me to consider that the 1300p achieved in 1998 equated to approximately 1211.5p in todays terms. DYOR.

Following the bedding in of the merger RB. has started to produce vg results and appears to be growing nicely - beating and matching targers etc - hence my reference to good company.

The key question now is whether the share price is getting ahead of itself after 6 quarters of upside which is probably about to turn into 8 quarters (following the slight blip in Q4 2001) when the price rises beyond 1089p.

I certainly think it will weaken from Q2 onwards as, in common with retailing, the personal care market may well come under pressure as the slowdown intensifies. Currently I am looking to add to my short at somewhere between 1095p and 1150p.

[the councillor] 22/1/2002 15:51

rb gone into xenova

[mayjuli] 22/1/2002 14:40

Can you explain how you came about the figure of 1211.50 pkvidean and what you mean by a Good company, RB. and has a 1300p pedigree.

Personally I don't think it will go much higher than where it is now, seems to be a well run company, gets a good return on capital and has a fairly high PE ratio. Any surprises would be on the downside in my view. Mind you I could be wrong, I often am

[psuedoname] 18/1/2002 00:00

Additionally, RB seems to have peaked on RSI over 80 and is turning down.

P

[pkvidean] 17/1/2002 19:55

Glad of some company, Pseudoname. Thanks for the info.

No, I am still short on RB. and would not dream of going long until Q3 at the earliest (barring disasters),

Registered 1070p today but whether its got the guts to exceed the Q3 high of 1089p is very much in the balance.

Your initial entry point of 1033p is fine but is it not better to stagger your short adds a bit more???

RB. could go as high as 1350p so staged increments selecting from e.g. 1083p, 1133p, 1183p, 1233p, 1283p & 1333p would seem to me more appropriate (assuming sufficient funds are available). Going again @ 1043p is a bit like using up a lifeline on the £100 question!!! IMHO.

[psuedoname] 17/1/2002 11:43

pkv

I've just shorted RB. at 1033 and again at 1043, but despite this no one has told the share it's time to fallback. It's up another 10p today.

Have you closed your short or have you turned it to a long ??

P

[pkvidean] 15/1/2002 20:59

Colgate/Palmolive up 57 cents, to -09.6% short of high.

Good company, RB. and has a 1300p pedigree. Arrived at a historic target of 1211.50 by analysing restrucuring etc.

Looking for about 1095p next.

[pkvidean] 13/1/2002 18:38

Colgate/Palmolive off 13 cents to -10.5% short of high. Histroric P/E allegedly 29.6.

[pkvidean] 13/1/2002 14:23

Oops! - Tipped as a buy in the Independent today.

[pkvidean] 12/1/2002 16:15

I was well wrong with this long-term outperfomer.......but I still think its relatively expensive.



!

[the councillor] 28/12/2001 18:02

rb has gone into omh @14.75 target 20p s/l 13p....omh is one of his selections of 2002....regards TC

[the councillor] 24/12/2001 16:58

rb just posted his five selections for good growth in 2002 on the website, makes interesting reading. dyor etc etc...regards TC