Rexam Share Discussion Threads

[wad collector] 22/2/2012 08:32

Highlights

-- Underlying profit before tax GBP450m - up 15%
-- Strong free cash flow(2) of GBP277m - net debt reduced to GBP1.3bn
-- Return on capital employed improved to 13.7%
-- Efficiency savings of GBP35m
-- Total dividend up 20% at 14.4p
-- Beverage Cans underlying operating profit up 13%

Hitting a 4 yr high this morning ; patience being rewarded?

[broadwood] 22/2/2012 08:21

Market likes very much - so far.

I would guess the good news on the can division.

[broadwood] 22/2/2012 07:55

O.K. results. Record profits but still some problem areas, one of which will be sold soon. Should get a boost from that.

[broadwood] 21/2/2012 19:03

Results tomorrow.

Hopefully most of its troubles of the last three years are behind it now. I should say it'll be steady as you go - but they won't disappoint.

[wad collector] 20/1/2012 20:46

Tipped in IC this week- positive about its increasing profits in 2013.

[wad collector] 09/1/2012 09:14

£4 on the horizon now - it would be a 3 year high.About time.

[wad collector] 05/12/2011 10:45

2011 2012
Date Rec Pre-tax (£) EPS (p) DPS (p) Pre-tax (£) EPS (p) DPS (p)
Charles Stanley
24-11-11 ACCU 462.00 36.90 14.00 460.00 37.00 15.50
Seymour Pierce
17-11-11 BUY 448.80 35.90 14.20 483.60 38.70 15.40
The Royal Bank of Scotland NV
14-11-11 BUY 437.64 35.46 14.20 460.48 36.33 15.10

[wad collector] 25/11/2011 19:50

From last weeks Independent

Our view: Buy


Share price: 332.8p (+7.7p)

Rexam's shares were among the strongest on the FTSE 100 last night. The gains, achieved as the wider market headed south, came after Europe's largest manufacturer of beverage cans said it was trading in line with hopes, with strength in the cans division limiting the hit from weakness in its plastic packaging business.

There was, in other words, nothing eye-catchingly spectacular on the trading front – at least nothing that would explain the sharp jump relative to other blue-chips. To work out why the stock rallied as it did, we think it might be more useful to take note of Rexam's comments on the weaker plastic packaging division.

In particular, the company said it was "exploring all options" for the division's personal care arm, "including divestment". In English, this means the company is trying to get rid of the business, which, as Seymour Pierce points out, makes up around half of the plastic division's sales.

This is good. Getting shot of personal care would leave Rexam's plastics operation with the more resilient healthcare products business. Combined with the strong beverages arm, the company will be better positioned to deliver value to shareholders. And talking of value for shareholders, if Rexam does end up selling personal care, investors could be in line for "a major cash return", according to Bank of America Merrill Lynch. This is because the company is doing well with its debt target, and could afford to give shareholders a boost, which would come on top of the already very tasty 4.3 per cent dividend yield.

Now, before we come to our recommendation, we should admit that we bought in earlier this year, when Rexam was trading north of 370p. Since then, it has fallen back. Given the uncertain economic backdrop, we did think about sitting tight until our investment is back in the black. But the possible disposal changes everything in our view.

Rexam is a good business with a healthy yield and undemanding valuation multiples (which is why it's not a sell). It does, however, have its weaknesses. The fact that it is dealing with them, and the possibility of a further cash boost, makes its well worthwhile in these uncertain times.

[shuisky] 12/10/2011 14:11

Alcoa's results good indicate good news going forward for Rexam?

Article on it here..

[essentialinvestor] 09/9/2011 13:21

This is looking ugly imv

[wad collector] 07/9/2011 16:00

2011 2012
Date Rec Pre-tax (£) EPS (p) DPS (p) Pre-tax (£) EPS (p) DPS (p)
The Royal Bank of Scotland NV
05-09-11 BUY 437.64 35.46 14.20 460.48 36.33 15.10
Charles Stanley
19-08-11 ACCU 462.00 36.90 13.80 475.00 38.00 15.00
Seymour Pierce
03-08-11 BUY 448.80 35.90 14.20 483.60 38.70 15.4

Both RBS and Charles Stanley have adjusted their estimates upwards since July.

[deanforester] 03/8/2011 10:42

A good set of interims. Dividend up 18% and about 2.5 times covered.

[wad collector] 14/7/2011 12:37

He's a ramper - same entry other bbs.


Another broker buy -
2011 2012
Date Rec Pre-tax (£) EPS (p) DPS (p) Pre-tax (£) EPS (p) DPS (p)
Charles Stanley
08-07-11 ACCU 435.00 34.80 13.00 470.00 37.00 14.20
The Royal Bank of Scotland NV
05-07-11 BUY 417.84 33.80 13.00 467.84 36.80 14.50

[killieboy] 08/7/2011 19:36

10 - Am I missing something - what is that all that about?

[10] 08/7/2011 11:10

Before you click your mouse to buy another speculative oil stock...
Please consider the following...

* FACT: China will build another 90+ new airports over the next decade.
* FACT: World demand for roads, factories & buildings is increasing exponentially.
* FACT: One company owns all the global rights & patents to an energy re-use process that makes raw material & energy manufacturing processes up to 50% more efficient.. to repeat that.. they own the *global rights* to this process.

* FACT: This company is recently dual listed and is therefore now ISA eligible.
* FACT: This company (new to LSE) has just been awarded several multi £ million contracts to complete power plants utilising this new technology (Kalina® process).
* FACT: Still under people's radars due to only listing in the UK in Dec 2010.
* FACT: You should investigate WASABI ENERGY's future plans & potential returns.

LSE:WAS
July 2011 SP: 3 pence
Projected 2013 SP: 28 pence

[wad collector] 05/7/2011 13:04

Drought of Directorial buying continues, though share price is strengthening.
2011 2012
Date Rec Pre-tax (£) EPS (p) DPS (p) Pre-tax (£) EPS (p) DPS (p)
Charles Stanley
01-07-11 ACCU 435.00 34.80 13.00 470.00 37.00 14.20

[wad collector] 25/5/2011 12:15

2011 2012
Date Rec Pre-tax (£) EPS (p) DPS (p) Pre-tax (£) EPS (p) DPS (p)
The Royal Bank of Scotland NV
23-05-11 BUY 417.84 33.80 13.00 467.84 36.80 14.50
Seymour Pierce
10-05-11 BUY 434.10 34.70 12.90 475.20 38.00 14.10

[wad collector] 10/5/2011 12:38

Thanks for those

2011 2012
Date Rec Pre-tax (£) EPS (p) DPS (p) Pre-tax (£) EPS (p) DPS (p)
Charles Stanley
03-05-11 ACCU 435.00 34.80 13.00 470.00 37.00 14.20

I see none of the directors have traded any for a year or so .(except options)

[broadwood] 06/5/2011 07:53

LONDON (SHARECAST) - Rexam, maker of cans and plastic packaging for anyone from Coca-Cola and Heineken to US consumer products manufacturers such as Procter & Gamble, wants to achieve a return on capital employed of between 12% and 15% over the next three years. For 2010, the figure achieved was 12.3%. Rexam shares are on about 11 times this year's earnings and should have further to go in the long term, says the Times.

[broadwood] 05/5/2011 12:32

This'll do nicely.

Shares in Rexam (REX.L) climb 1.8 percent, among the top risers on Britain's FTSE 100 .FTSE leader board, after the drinks can maker reports first-quarter trading in line with its expectations, with Seymour Pierce repeating its "buy" rating.

Rexam, which makes cans for Carlsberg (CARLb.CO) and Red Bull, says it has seen a better than expected performance from its beverage can division, but the outlook for its plastic packaging division is now more cautious. [ID:nLDE73R1K3]

"We believe the company is well invested and ideally positioned to participate in the cyclical upswing with a balanced exposure to mature developed markets and emerging countries which now account for 30 percent of sales," Seymour Pierce says in a note.

The broker says the improving outlook is not reflected in the rating, with Rexam trading on a prospective price/earnings (P/E) for FY2011 of 11.1 times, at a discount to peer Ball Corp (BLL.N) and Crown, which both have a P/E of 13.3 times

[wad collector] 03/5/2011 08:31

Looks like £4 will be breached soon.And yet , how much has really changed since these were £3 six months ago? The nonsense of the market.

[broadwood] 16/3/2011 13:25

RBS has a buy for Rexam, raising target to 405p from 350p

[nellie1973] 24/2/2011 14:39

Another broker upgrade

[wad collector] 24/2/2011 10:47

I did.We now hold about 10% of our portfolio in rexam - far too big but not one I worry about .Looking for some short term gain on todays buy.