Rexam Share Discussion Threads

[lambeater] 02/6/2016 11:01

As we enter the final 3 weeks before REX is eaten up by Ball, I wanted to compare my take with others who still hold. I may be wrong on some points.

The default action is 407p in cash and 0.04568 Ball shares per REX share. An alternative is 610p with a meagre top up of an uncertain amount of cash/Ball shares.

I reckon that for anyone holding less than 2,000 shares it is not worth taking either offer and it is better to sell at best price in the market, reason being that you would end up with too small a quantity of Ball shares to be a viable investment. You have up until and including June 23rd to trade/decide.

I have 2,400 shares and it is my intention to take the default offer which will result in £9,768 in cash plus the cash that relates to a fraction of one Ball share in the offer, call it £32, totalling £9,800. It will also give me 109 Ball shares, currently worth USD7,848 (based on a Ball share price of USD72) which at the current rate of Cable (1.4430/0.693) equates to £5,438.

So that is a grand total of £9,800 + £5,438 = £15,238 compared to 2,400 x 627p (current sp) = £15,048, better by £190. Of course this will vary depending on the exchange rate and the future performance of Ball.

I think Ball is a good investment and good political and currency hedge.

I post this partially in order to help others and partially for others' advice as, despite thinking I understand the offer, I may not have done so!

[betman] 11/5/2016 10:23

Thanks, safely received now, was an issue with file transfer to platform

[solomon] 10/5/2016 15:37

I got my divi on 6th. Paid into my TDW account.

[betman] 10/5/2016 14:04

Did everyone get their dividend on the 6th May ?? Despite the takeover the REX website says the divi will be paid on the 6th

[dr_smith] 19/1/2016 17:17

My post 1020 was spot on.
Market dip on monday then up again today.
Though a monkey had a 1 in 4 chance of getting it right too.
This monkey is expecting market (exc. oil) to go up up up for rest of January.
IMO DYOR :-)

[dr_smith] 18/1/2016 11:01

Now sold, to take advantage of overall market dip.

[redartbmud] 16/1/2016 13:22

I had decided to cash in but then the market went against me, I am now tempted to hold to the bitter end.
Other stocks cheap today, maybe cheaper tomorrow. buying is still a lottery. At some point it will be lucrative. Good stocks look oversold, but economic downturn could hit profits where it hurts.

[dr_smith] 15/1/2016 17:58

Cheers Wad.
Still hold mine ftb, but have been buying elsewhere today to make most of dip.
I am guessing it will be another dip Monday, then start clibing quickly.
As Rex hasn't been knocked down like others, other things equal, to sell Rex and buy repressed share seems wise for us PI's.

I hope our paths cross many times, no doubt like a game of snakes and ladders with 'volatility' being one of the watch words according to the latest YouInvest video.
Best wishes.
Dave (Russell) Smith - I'm not a Doc but too many D Smiths' for simpler handle.

As always: NAI DYOR

[wad collector] 15/1/2016 17:15

All gone Dr Smith , bought some bargains in this weak market.
I don't think that the latest economic data really justifies such widespread share price weakness. But if someone wants to sell , then happy to buy.
See you on another BB!

[dr_smith] 12/1/2016 17:15

RNS * 2 for 8/1/16:
Morgan Stanley holding down from 10,281,259 to 5,652,757

UBS Investment Bank
UBS Group AG up from 35,487,746 to 42,702,509

Wad, even the institions are undecided, ;-)

[dr_smith] 12/1/2016 15:31

(whisper mode on) 611 now - holding another 3 hours would have covered stamp duty. Maybe re-invest in crystal ball ;-)

[wad collector] 12/1/2016 12:27

Sold another 1000 at 606. Almost gone....

[dr_smith] 12/1/2016 12:20

Thank-you Wad for calcs. I think you are right re looking for alternatives, especially at this time of year, but sentiment inconsistencies along with world markets volatile hinders decison making.
I used to be decisive, now I'm not so sure. ;-)

[wad collector] 12/1/2016 11:48

Ball 69.16 x0.04568 = $3.15 sterling usd 0.69 =£2.17
+£4.07 cash = £6.24
sp £6.04.5
so a 19.5p gap ; 3%
Brazil said yes 10 days ago but I see no other news.

[dr_smith] 12/1/2016 11:33

I need to liquidate some of folio in next few weeks so this a prime contender.
Let me know when you go, I don't want to be on my own. ;-)

[wad collector] 12/1/2016 11:19

Down to my last 2000 ; I think the opportunities elsewhere are for more than 2-3 %. Little more blip will see me out.

[dr_smith] 08/1/2016 14:48

Say 31/3/16 as an H1 average for purpose of an easy maths calculation and ignore other problems - that's my gut instinct :-)
I bet your motivation is more to do with tidyness like me.
I also have TCY awaiting t/o finalisation and a couple of rubbish oilers I could sell but hoping any rebound will outweigh possible gains elsewhere.

[wad collector] 08/1/2016 14:02

But the time-frame is uncertain;
"The deadline extended for the third time to Jan 22 from Dec. 23 after companies submitted commitments"
The most recent company statement was "early 2016" which could be months. And the possibility of further problems remains.

[dr_smith] 08/1/2016 09:35

I anticipated an end of year dip, so sold some 'toppy' shares and now looking to re-invest, yesterday or today...but probably wait for Monday morning to decide.
Re Rex, I guess the question is, will your alternative re-invest give >4% in same time frame.
Could make 2-3% (less 1% stamp duty) in a couple of weeks with a good buy elsewhere.

[wad collector] 08/1/2016 09:05

Offer now worth £6.25
Rex at £6.
So 25p for holding ..is it worth it?
It is about the same gap as a month ago . The question in my mind is what to do with the money. I suspect the market will bounce up again and soon wipe out advantages of hanging on for 4%. I may be proved wrong but I am selling some more if it touches 603 today.

[dr_smith] 15/12/2015 11:32

Nice one Wad.
I was employed by Nat west for 23 years.. man and boy, hardest job in the world ;-)
I had a staff house loan, which was taxed on benefit.
When I left and moved my mortgage I found I was paying less 'net' at commercial rates (with 'egg' at time).

[wad collector] 15/12/2015 11:18

Sadly I am not a youngster either ; when I opened my first bank account on leaving school , Nat West were paying 11% interest. Now I have a 30 yr business loan from them at 1.5% (Which they regret!).
Can't see 11% interest soon ; but you never know. Reichmarks.

[dr_smith] 15/12/2015 10:57

Yes, yes and yes. :-)
I see xmas period to mid feb as a time with lots of changes, and tomorrow we have Fed rate rise likely, which I see as minor consequence, though market no doubt will make big deal of it.
So an opportune period Wad for you to apply your cunning opportunistic plan.

I was reading yesterday there are a high proportion of youngsters in the markets who haven't experienced rate changes. Stand by for rattles to be thrown out of prams. ;-)

[wad collector] 15/12/2015 10:35

If you see it in isolation then it makes sense to hold for a few more pence , but if you think the wider market is under-priced , then better to see it as an opportunity. Of course the market could drop further and make it wiser to have delayed buying. I still have about 5000 REX.