Rexam Share Discussion Threads

[wad collector] 23/2/2011 17:48

That sort of irrational market response tempts me to buy some more.

[broadwood] 11/2/2011 16:51

There may be more news in the papers this week end about the sale of the loss making subsidiary.

[cw2000] 11/2/2011 16:48

A nice breakout here - looking for good results in 2 weeks time.

[wad collector] 07/2/2011 10:43

Most recent brokers guesses;

2010 2011
Date Rec Pre-tax (£) EPS (p) DPS (p) Pre-tax (£) EPS (p) DPS (p)
The Royal Bank of Scotland NV
25-01-11 BUY 396.43 31.66 12.00 429.03 33.76 13.00
Charles Stanley
20-01-11 HOLD 407.00 32.50 12.00 432.00 34.00 13.00
Seymour Pierce
10-01-11 BUY 395.60 31.60 12.20 423.00 33.80 12.50


The share price appears to making a sustained recovery now .I've not lost sleep over my holding here as confident long term , but will be pleased to be back in the blue soon at this rate.

[nellie1973] 17/12/2010 08:20

Broker upgrade today

[brain smiley] 15/12/2010 12:13

apparentlyNHWould be a key positive
Closure sales have continued to decline for Rexam in 2010 following a painful
2009. We do not have a depreciation estimate, but we estimate that Rexam's
beverage and specialty closures business is generating £325-350mn of run rate
annual revenue (30% of the Plastics division) with EBITA of roughly £20-25mn
(7% EBITA margin). We would view a divestiture at a reasonable price as a
positive. Rexam would free itself of the weakest link in its Plastics portfolio that is
unlikely earnings its cost of capital. This would leave Plastics with reasonably
attractive, niche positions in Heathcare and Personal Closures (both profitable
and growing) to complement the Beverage Can business.
NHIn line with our thesis
A divestiture of Closures would be the first step in boosting the company's return
profile. In our September 20, 2010 piece Deep Value, Overhangs to Lift, we
said that Rexam's likely establishment of long term ROCE objectives in early
2011 would prompt some hard decisions on the fate of the Plastics unit. Rexam
needs to decide where, how, and if it wants to compete in Plastics. While a
divestiture of Closures is not guaranteed, we have greater confidence that Rexam
is taking an open minded approach to its portfolio, and the company's long term
strategy is being rigorously evaluated. If the business cannot be sold, we would
expect a more aggressive restructuring of the Closures division.
NHLong-term upside still far outweighs the downside
Rexam shares are up roughly 11% YTD on a total return basis, but have still
lagged peers significantly. Shares trade at 9.2x 2011E EPS. We continue to see
60%+ potential upside on a three year basis if the company can boost ROCE to
15% with downside to the 270p level assuming worst case earnings of 30p and a
9x P/E. A sale of Closures could be the first step in unlocking value amplified by
the expected issuance of long term ROCE targets in early 2011.
BESuch an idea's been kicking about for a while, as it happens.NHand another quick think on RexamNHapparently they have lagged their US peersNHand a re-rating is dueNHcatch-up trade in Rexam.
* The stock has really underperformed the market over the last 6-months. Mkt has been concerned about: debt
& US beverage can renegotiations (+ been ignoring value/ EM growth here):
(i) (i) investors searching around looking for cheap emerging plays..Rexam trades on 9.5x 2011 has 12% sales
exposure to Brazil, 7% to Russia and is expanding capacity heavily in EMs,
(ii) (ii) people are also looking for safe yield, Rexam has a divi yield of nearly 4% and a FCF Yield of 12%,
(iii) (iii) Buyers in mkt, stock up in decent volume.

[wad collector] 16/11/2010 11:11

Results look OK .

Rexam Sees Second Half Results Similar To First Half


Rexam PLC (REX.LN), the world's largest maker of drinks cans, Tuesday reported trading since July 1 in line with expectations and said that it anticipates results in the second half of 2010 will be similar to those in the first half, and that it will continue to invest in additional capacity to meet demand in the Americas.

MAIN FACTS:

-Beverage cans and plastic packaging were performing as expected and the execution of its cost reduction initiatives remained on track.

-In beverage cans, volume growth in Europe was driven by specialty cans, although, as expected, the growth rate in the period was somewhat slower than in the first half. In North America, specialty cans made good progress, while the business in South America continued to grow strongly.

-In plastic packaging, volumes in personal care continued to recover, health care volumes were up versus last year, but demand for closures remained soft.

-It continues to invest in additional capacity to meet strong demand for beverage cans in South America and specialty cans in North America.

-Total installed capacity in South America will increase from 11 billion cans in 2009 to 14 billion cans by 2012.

-In North America, Rexam will increase its capacity of 24-ounce cans by 400 million cans, or 13%, by 2012.

-Net debt at September 2010 was GBP1.7 billion, and the ratio of net debt to earnings before interest, tax, depreciation and amortization on a reported basis fell to 2.2 times from 2.9 in the third quarter of 2009.

-"We are investing in carefully selected, high-return projects in emerging markets and higher growth segments that will improve our overall growth prospects while keeping capital expenditure under tight control," said Chief Executive Graham Chipchase. "We continue to expect our results in the second half of 2010 to be similar to those of the first and remain focused on cash, cost and return on capital to ensure our business is in good shape

Latest broker guesses -
2010 2011
Date Rec Pre-tax (£) EPS (p) DPS (p) Pre-tax (£) EPS (p) DPS (p)
Charles Stanley
12-11-10 HOLD 407.00 32.50 12.00 432.00 34.00 13.00
The Royal Bank of Scotland NV
05-11-10 BUY 396.43 31.66 12.00 429.03 33.76 13.00
Seymour Pierce
01-10-10 BUY 395.60 31.60 12.20 423.00 33.80 12.50

[antreg] 02/11/2010 16:34

Anybody interested go to £1 site and see finger chart analysis. Looking good.

[antreg] 29/10/2010 11:46

Appears to a big seller in the market.

[antreg] 26/10/2010 12:29

It's in the right direction though.

[wad collector] 04/10/2010 23:01

Wow thats some adjustment!

[betman] 21/9/2010 08:29

snippet from FT - Rexam rises after speculation about break-up returns.
Could explain rise from 302 to 314p

[wad collector] 29/7/2010 13:50

This is safe enough in the long term ; might take a couple of yrs to tickle £6 again but I can wait.
The results are solid but below those broker guesses,so it is dipping today but it's no lemon.

[pidgeon2] 29/7/2010 13:16

agree, very risky


Investors BAD-Intelligence are fools buying at the top

[trendfloor] 28/7/2010 07:52

Excelent results.....

RNS Number : 0335Q
Rexam PLC
28 July 2010



Strong profit growth and improved returns

Rexam, the global consumer packaging company, announces its results for the six months to 30 June 2010.

Underlying business performance1



Six
months to 30.06.10


Six
months to 30.06.09





Sales (£m)
2,491


2,516





Underlying operating profit (£m)1
266


218





Underlying profit before tax (£m)1
198


135





Underlying earnings per share (pence)1,2
15.9


13.0





Interim dividend per share (pence)
4.0


-








Highlights

• Organic3 sales up 2% as volumes begin to recover

• Organic3 operating profit up 25%

• Strong free cash flow of £130m

• Return on capital improved to 12%

• Beverage Cans volume growth of 2% driven by strong recovery in specialty cans

• Plastic Packaging performance in line with expectations

• Interim 2010 dividend of 4.0p

Commenting on the 2010 half year results, Graham Chipchase, Rexam's Chief Executive, said:

"We are pleased with our performance in the first half. There has been some volume recovery as well as pricing improvement. Our relentless cost control has driven strong profit growth. Tight management of capital expenditure and working capital has yielded good cash flow, and our return on capital has improved significantly.

In most of our businesses, the trading environment is stabilising and the outlook for Beverage Cans has improved since the start of the year. However, uncertainty persists about the global economic outlook and visibility remains low.

We expect our results in the second half of the year to be similar to those of the first. We are confident that our focus on the fundamentals of cash, costs and return on capital will continue to strengthen our business and improve shareholder value."

[killieboy] 27/7/2010 13:13

Mainly banks/miners up today remainder of market down slightly.

[trendfloor] 27/7/2010 11:02

Would have thought this would be moving up to results.

looks like we should get some good ones.

[trendfloor] 26/7/2010 16:45

Cheers Dean, should have checked but been too busy moving holiday home.

[deanforester] 26/7/2010 16:41

Results are out on Wednesday, 28th July.

[trendfloor] 26/7/2010 15:29

Well the brokers are backing this one.......

derd cheap historicaly trading on a P/E of just 11.5 to 2011


REXAM PLC

FORECASTS 2010 2011
Date Rec Pre-tax (£) EPS (p) DPS (p) Pre-tax (£) EPS (p) DPS (p)

Charles Stanley
23-07-10 HOLD 345.00 27.60 12.00 371.00 29.30 12.60

Oriel Securities
23-07-10 BUY 373.50 29.80 13.20 420.20 33.50 13.50

Seymour Pierce
22-07-10 BUY

The Royal Bank of Scotland NV
08-07-10 BUY 324.80 25.10 12.00 389.80 30.13 13.50

2010 2011
Pre-tax (£) EPS (p) DPS (p) Pre-tax (£) EPS (p) DPS (p)

Consensus 345.00 28.94 12.00 389.80 30.13 13.50

1 Month Change 2.07 1.50 -0.07 0.28 -0.55 0.90
3 Month Change 8.60 2.09 0.00 1.46 -0.54 0.30


GROWTH
2009 (A) 2010 (E) 2011 (E)

Norm. EPS -9.68% 5.92% 4.11%
DPS -40.02% 10.09% 12.50%

INVESTMENT RATIOS
2009 (A) 2010 (E) 2011 (E)

EBITDA £584.00m £738.80m £803.80m
EBIT £357.00m £m £m
Dividend Yield 3.14% 3.46% 3.89%
Dividend Cover 2.51x 2.41x 2.23x
PER 12.69x 11.98x 11.51x
PEG -1.31f 2.02f 2.80f
Net Asset Value PS -18.36p 263.28p 274.67p