As for why they fell today - it will involve reading what margins either were , or were expected to be - something they have decided not to publish the comparison for but I guess the professionals were already aware of ...
thus this innocuous looking sentence seems to be the culprit...
"we remain on track to meet our full year guidance to grow Group Adjusted Operating Margin to c.16.5%. This includes a H2 margin performance in Hygiene & Wellbeing in excess of 19.0%," |
"mortal1ty
19 Oct '23 - 09:03 - 1187 of 1200
Well given this is a bond proxy with slowing growth and bond yields roofing it, in suprised this hasn't fallen a lot already."
Define slowing growth.....
because from the RNS "Revenue growth of 59.9%" yeah that's a disaster practically moribund , clearly management did nothing about that .
or "31 bolt-on acquisitions in the nine months to the end of September" standing still is their weapon of choice ?
But you may say - all they have done is just bought turnover -
"on course to deliver our full year pre-tax net cost synergy guidance of $60m year over year." says that they are doing something about that as well.
Guess you will remain pretty fixed with your ideas despite evidence to the contrary though..... |
BBC:
"
Pest control company Rentokil said it saw a 65% jump in cases of bedbugs in the UK in the second quarter of 2023, compared with a year earlier.
And Luton Council issued guidance to local residents this week on how to handle an outbreak, after dealing with an "alarming number" of calls about bedbugs.
" |
Tristel:
"
Strongest ever outlook in Tristel's 30 year history driven by key North American regulatory approvals
Tristel plc (AIM: TSTL), the manufacturer of infection prevention products for hospitals, announces its audited preliminary results for the year ended 30 June 2023, showing strong revenue growth from continuing products well ahead of internal
"
Rentokil next! |
Tristel is flying (hygene) |
"if" any sort of outbreak of covid or pests or flu in USA or Europe this winter this stock might well fly.... |
Trestil hygiene up 8% today (aim ) hygiene is back in vogue |
Yes in all seriousness RTO is at the forefront of saving humanity from extinction. With viruses and pests the right balance of hygiene and exposure to potential diseases is really important.
RTO is the only company that can save humanity from extinction. We will have all sorts of pandemics in the next ten years. RTO is our shield |
Yup... The COVID effect equivalent share.. |
Come on you bed bugs. 😀🕺🌶️€526;🎂㈊4;🌾🥵 |
You're right though, a gradual and hard fought grind up can disappear in an instant and then some. Come on bed bugs get spreading |
A bond proxy is basically defined as a company with very stable revenues, low growth, sticky customer base. This means they generate very predictable cash flows.
Things which generate predictable cash flows are bonds (like a savings account).
The valuation of bonds go up when yields (interest rates go down) and vice versa.
Rentokil is a classic bond proxy, and its valuation has benefitted from lower rates over many years. The reverse should have happen recently, but as far as I can tell, Rentokil's valuation has stayed pretty high.
I think this move lower is just a catch-up... inspired by a mixed trading result. |
I'm guessing the bed bug story and others like it will slowly drag this baby back up... |
mortality: "bond proxy" - can you translate for people like me who dont do rocket science finance?? Thanks 😃 |
Well given this is a bond proxy with slowing growth and bond yields roofing it, in suprised this hasn't fallen a lot already. It has come catching up to do. |
Too bad they don't have a service for the elimination of short sellers |
Absolutely. Market completely over punishes. Now RTO have seen huge increase in bedbug work recently however. Surprised they didn't highlight that.But bedbugs have made a resurgence thanks to Britons' love of international travel leading to holidaymakers bringing the insects home with them. In fact, Rentokil alone treated 65 per cent more bed bug infestations in the second quarter of 2023 compared to the year beforeDaily mail article today |
Shares take for ever to rise then fall - splat - in an instant.
Its such a soul destroying game... |
got to be worth a punt for a quick 20% at these levels.
Can't see any reason for sell off. |
USA softening is what did the fall. |
18% arghhhh
when will it stop???
what has happened? |
Can’t see any bad bit net |
Blimey its 17.1% now...
Can someone tell me what the problem is?
Sorry, I just can't see it..
Thanks |
joshuam: I'm reading the update and can you tell me (or anyone) where the bad bit is that made it fall 13%+?
Apologies if its obvious I just cannot see it. |
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