Rexam Share Discussion Threads

[thehoops16] 11/8/2009 15:33

maybe a silly question and i don't know much about or hold this share but can someone answer - If the price of aliminium continues to rise how will that affect this share price?

[kiwi2007] 11/8/2009 12:58

View: Rexam is a value call. We believe the share offers limited downside
risk trading at attractive multiples on cyclically depressed earnings and a
34% upside looking into economic recovery and normalised earnings. Why
little downside? 1) Consensus earnings have been downgraded to
depressed and realistic levels post results and Rexam's cautious
guidance. 2) Rexam's end markets are stabilising which together with £75m
in internal cost cutting should greatly reduce the risk for sequential earnings
erosion in H2-09 and looking into 2010. 3) A return of economic growth
should reverse the cyclical pressures adversely impacting Rexam in 2009
(H1 organic EBIT -20%) 4) The £350m rights issue should have removed
concerns about the balance sheet. 5) Reduced capex and an adjustment of
the dividend policy to a sustainable pay-out with a dividend cover of 2-2.5x
should see Rexam returning to solid cash generation and debt reduction
throughout our forecast horizon. The upside potential is significant, in our
view. In a scenario with the economy returning to trend growth we see
Rexam delivering normalised EPS of 37.1p by 2012.

.........Credit Suisse

[pidgeon2] 11/8/2009 09:59

the times pushing them too. why dont people ever learn?

[betman] 11/8/2009 09:50

Credit Suisse upgraded its rating on Rexam from neutral to ­outperform with a 300p price target, ­arguing that there was little ­downside in the company's depressed market value, while cost‑cutting and stability in end markets should boost its earnings prospects

[pidgeon2] 11/8/2009 08:59

wise move. 244 max IMO

[elderberry4swineflu] 11/8/2009 08:49

sold out..took my profit

[pidgeon2] 11/8/2009 08:19

and too much debt, this rights issue only reduces it by 350

[engineer66] 10/8/2009 21:59

If you into sustainability then you would see reduced packaging as a good thing. However, I dont think think they have a demand problem, a weak share price seems more to do with competition and misplaced adventure in Russia.

[pidgeon2] 10/8/2009 17:11

no that the swedes. but they do some plastics stuff

[elderberry4swineflu] 10/8/2009 16:48

so what about cartons?

[pidgeon2] 10/8/2009 16:46

afraid not these guys are cans

[elderberry4swineflu] 10/8/2009 16:43

well ive just bought 30 amber bottles for swine flu remedy...that should help

[little beaker] 09/8/2009 22:48

I think 1fox's point is just fine, many other competitors are close to year highs, and britvic does have a vertically integrated manufacturing aspect to the business. Other international competitors are also doing just fine, e.g.:



Rexam has clearly underperformed both its peers and the market.

[jimsbest] 08/8/2009 22:03

Lighten up guys

You may appreciate this

Went to the bank today to get some money out a message came up on the screen insufficient funds..........Then I got to wondering is it them or me

[pugugly] 08/8/2009 14:40

1fox1:

Please write out multiple times.

I must do my research before posting:-

Britvic are not peers. They make the gloop you drink from the can or bottle.

rexam could make the can or bottle for Britvic amongst others

Totally differentproducts and markets.

The only linkage is that one is packaged in the other BUT one is a consumer product and the other a packaging component.

[jimsbest] 08/8/2009 01:45

It seems that this management have let the investor down, they buy Rostar and expect big things, then the packaging has changed and metal cans are out of fashion, it seems that one word through all this is missing


RESEARCH


Some rights issues this year have not worked out how the companies concerned expected, and I think this will be another one added to this list,its down again today. only .75 away from the rights price! and still falling

[1fox1] 07/8/2009 19:58

Very disappointing performance when you consider that peers such as Britvic are trading near year highs.

I think management are being disingenuous when they blame performance on weak global markets - in my view, they have executed poorly and are losing market concentration vs their competitors.

[hvs] 07/8/2009 13:27

Did anyone ask you to ? Kiwi ?

[kiwi2007] 06/8/2009 16:57

Well the RSI is now down at 20 again but I've to admit to not finding it tempting anymore. I had a little dabble on REXN earlier last week when it hit 20 first time but bottled out and took a few pence profit. I won't be chasing this one up anytime soon.

[pidgeon2] 06/8/2009 16:26

big selling today, largest vols in a long time

[pidgeon2] 06/8/2009 09:35

probably more like northern rock

[barniebear] 06/8/2009 07:09

people will always buy cars and look what happened to GM

Their entire range in the USA were Gas Guslers/ Take a look at Hondas results

Now that begs the Q is REX more like GM or Honda!!

[pidgeon2] 06/8/2009 00:57

people will always buy cars and look what happened to GM. so what

[deanforester] 05/8/2009 16:55

Engineer66 - 5 Aug'09 - 11:59 - 464 of 465

If you think that people are going to stop drinking Coke and Stella, and that women are going to stop buying cosmetics, then perhaps Rexam is a spent force.

I suspect that the third world will prove you wrong.