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REX Rexam

645.00
0.00 (0.00%)
28 Mar 2024 - Closed
Delayed by 15 minutes
Share Name Share Symbol Market Type Share ISIN Share Description
Rexam LSE:REX London Ordinary Share GB00BMHTPY25 ORD 80 5/14P
  Price Change % Change Share Price Bid Price Offer Price High Price Low Price Open Price Shares Traded Last Trade
  0.00 0.00% 645.00 - 0.00 00:00:00
Industry Sector Turnover Profit EPS - Basic PE Ratio Market Cap
0 0 N/A 0

Rexam Share Discussion Threads

Showing 1326 to 1347 of 1425 messages
Chat Pages: 57  56  55  54  53  52  51  50  49  48  47  46  Older
DateSubjectAuthorDiscuss
24/3/2015
16:37
just a waiting game, slowly rising, still big difference between share price and offer price so potential hay to be made by those picking up the shares with of course downside risk should deal fall over. For me happy to sit and wait, if share price nudges over £6 they will be welcome to mine... I think that gives a fair reward / risk level......
simon8
23/3/2015
11:24
Wad - Now I see what you mean too. I don't tend to use the forum charts.
I wondered if it could be daily figures versus weekly/monthly but it isn't.
Putting the 2 side by side, above 5Y and google, above shows share price fluctuating around 500 but google shows 550-600 as the norm.
Difference is also too big for buy price V sell price.
Conclusion, don't rely on advfn charts...IMO

dr_smith
23/3/2015
10:00
I see what you mean ; I am a bit confused as the advfn site does not show that spike (It sometimes misses very transient spikes but seems to completely miss last years peak - look at the 5 year graph above) But clearly you are right .

Sample Period † High Low
1 week 577.50 555.50
4 weeks 577.50 549.00
12 weeks 577.50 424.60
1 year 577.50 424.60

I was recalling the 2006/7 peaks.

wad collector
20/3/2015
18:15
Wad - are we talking at cross purposes?
Rexam chart here showing 600 29/5/14 :


click on 1Y within chart.

dr_smith
20/3/2015
17:53
Hi , I had forgotten those heady days. But it was 2006 not 2014.
wad collector
20/3/2015
16:03
Popped out for an hour and missed it smaahing through the 7000.
For Rexam I see the high was 600 29/5/14 currently 576.

dr_smith
20/3/2015
15:38
Heading to a new closing high as Wall Street opened ........is the deal moving towards a yes?
wad collector
09/3/2015
17:45
Ball share price continues to fall , now 70 cents , but the market seems curiously muted with Rexam. Presume due diligence is progressing , not sure when the next news will appear...
wad collector
23/2/2015
13:28
Wad:
Hard to solder aluminium!

The only timed I've joined aluminium (bookshelf made at school) I used rivets.
You may well be right for can industry, but see here it can be soldered:
hxxp://www.wikihow.com/Solder-Aluminum

I'd expect the tooling to be minimal, though economies of scale must be key, and personally find it quite amazing there are so few manufacturers of one of the most common forms of packaging.

In your linked artice Balls comment:
"After 200 miles it becomes uneconomical to be shipping air",
which re-enforces my expectation of localised production.

dr_smith
23/2/2015
12:35
Hard to solder aluminium!


There was a questor article yesterday that seems to me to be missing the point. I am sure we would happily accept 628p ; the question is whether it will happen rather than whether we would accept it!



Rexam
565p
Questor says ACCEPT OFFER
Playing ball

Shares in the drinks can maker Rexam [LON:REX] rose 5pc last week after it recommended investors accept a 628p offer from US rival Ball. Questor would agree with the board of directors and take the cash and run. The deal comes at a near 40pc premium to the 448p share price before news of the talks was leaked in early February. And there is no guarantee that the company would be able to offer investors a similar return during the year ahead. Rexam said it had a “difficult year” in 2014, with sales down 3pc to £3.83bn. The company was grappling with weak pricing in end markets and volatile currencies. Pre-tax profits edged up £4m to £343m for the year ended December, largely on cost cuts.

Take the cash

Investors would be wise not to look a gift horse in the mouth as Graham Chipchase, chief executive, warned that the year ahead presented a “tough trading environment” with rising metal prices, foreign exchange volatility and pricing pressure. Drinks can makers are having to deal with record-high aluminium prices, and the cost of storing the metal is also expected to carry on rising in the coming six months. The company was also hit last year as all three of the major currencies it trades in, the US dollar, euro and Russian rouble, fell against sterling, which impacted reported results. Finally, in the highly competitive markets in which Rexam operates, prices for cans were falling.
Combined Strength

The logic behind the deal is that divided they will have to face these challenges and fight each other on price. If the two largest can makers combine forces, they can become a one-stop shop for providing the world’s largest drinks companies, such as AmBev, Heineken, PepsiCo and Red Bull, with cans across the world. Together, the two drinks can companies would account for 60pc of the beverage can supply in North America, 69pc in Europe and 74pc in Brazil, according to Morningstar analysts. The combined entity would also be able to reduce costs in many of the duplicated areas of the business such as sales, marketing, management and accounting.


Questor recommended Rexam’s shares twice last year (Buy, 500.5p, August 4) and again at 527.5p on June 26. The shares were a classic value pick trading on a reasonable earnings multiple of about 13 times, falling to 12 times and offering a decent dividend yield of 3.3pc. In the absence of this deal the market consensus was for profits and earnings per share to go sideways for the next two years. Investors wouldn’t necessarily lose anything if the deal falls through. That said, Investors are now being offered a chance to cash out while also holding Ball shares if they want further benefits. Questor thinks that is the best of both worlds, and we agree with the board and would accept the offer.


The telegraph had a relevant article yestrday also pointing out the break fee deal



Not surprisingly the Ball share price has dropped 5% since then.

wad collector
19/2/2015
15:29
I accept what you say, but it's not like say BT where existing infrastructure gives edge over competition, anyone can roll up a tin and dab some solder. As such, they are not preventing competitors from entering the market, so I expect the authorities to be satisfied. IMO ;-)
dr_smith
19/2/2015
14:41
The issue which will exercise the authorities is that the merged enterprise will control so much of the can market that it could be anti-competitive, especially is specific regions.
grahamburn
19/2/2015
14:25
Thank-you GB.
The regulatory aspect is the biggest unknown to me, in my naive thinking, they are not household names, therefore monopolies and mergers folks won't get too excited. Thet's my gut thoughts rather than logic/wisdom.

dr_smith
19/2/2015
13:55
The current difference between the notional offer price and the market price is (probably) due to:

- uncertainty that the bid will get regulatory clearance (and the offer states categorically that if either business is obliged to divest too much the bid will not become a reality)

- the possible year-long process to get to a firm offer (which is confirmed by Ball agreeing that Rexam shareholders can receive any dividends which the company declares for the next six months and even the next financial year - the one declared today is also obviously in Rexam shareholders hands; after ex-div date of course)

- the mix of cash and shares in Ball Corporation (ie a US listed stock) which is effectively a fixed ratio even though there will be a mix and match choice for shareholders, because the actual quantity of cash and shares remain fixed (ie if you choose all cash, then you'd only get that if someone chose more all shares, and you won't know the outcome until after the transaction is concluded)

grahamburn
19/2/2015
13:27
Hi Wad,
Can you...err wad that out a bit.
Each party seems happy with the proposal and I pondered the long time to complete.
In my limited experience, these things go though quickly on paper, though practicalities take much longer.
I took the longer than personally expected completion time to be a 'do it once do it right' attitude.
Do you have any reason for suspected uncertainty, other than it is long time?

dr_smith
19/2/2015
12:49
I think the (currently 70p ) discount to the offer price reflects the uncertainty that it will be completed rather than trader's short term risk ratio. (sorry posted before the above post - got delayed)
wad collector
19/2/2015
11:32
Results not outstanding, long time for deal to complete and a high probability of regulatory interference; I'm out. I suppose that's what makes a market.
ianood
19/2/2015
10:33
I agree with 'hold' as I see see it as a co with value with or without offer.
I guess 'low' share price to offer implies short term traders reckon they can do better - say 10+ deals with 1%+ gain in same time frame. It just depends where you are on the risk/reward scale.

dr_smith
19/2/2015
09:53
I am inclined to agree, share price still 10% off actual 610 agreed bid price, whilst won't complete until 2016 I think that is still quite a margin to give your shares away for even with potential risk of regulatory issues etc and time to completion. If this moved to a more sensible range of say 590 MMs can have mine now and make the profit on the balance for themselves.
simon8
19/2/2015
08:48
Back up today with results (Which are not particularily inspiring in themselves) ; I note with interest that they point out that the Ball offer is worth 628p at today's price.(Ball that is)
Time to hold in my view , though may all turn to dust.

Rexam delivers good performance in difficult conditions

19 February 2015

Rexam, a leading global beverage can maker, announces its unaudited results for the full year 2014.


2014 2013 Reported Organic
change
------ ------
change(5)
------ ------
Continuing operations underlying performance(1)
Sales (GBPm) (3) 3,832 3,943 (3)% 4%
Underlying operating profit (GBPm)
(1) 418 449 (7)% 2%
Underlying profit before tax (GBPm)
(1) 360 372 (3)%
Underlying earnings per share (pence)
(1) 37.2 35.3 5%

Total dividend per share (pence) 17.7 17.4 2%


Highlights

-- Beverage can volumes up 4%
-- Underlying organic operating profit up 2%
-- Underlying earnings per share up 5%
-- Return on capital employed 14.9% (2013: 15.5%)
-- Strong free cash flow from continuing operations of GBP225m
-- Final dividend of 11.9p, taking total to 17.7p (up 2%)

-- Recommended offer by Ball Corporation announced today of 407p in cash and 0.04568 of a new Ball share, representing in aggregate 628p per Rexam ordinary share

wad collector
09/2/2015
13:00
Or is he sanctioned by advfn?
Filtered too.

Sp suggests falling confidence in this bid.

wad collector
06/2/2015
14:50
I've opened a short position on BLL, can't figure out how the NPV of the taxed synergies accrued to Balls's shareholders can justify Ball's share price reaction. Earnings where uninspiring if one reads the earning call report.

1. The deal gets through and Ball's 10% spike (+600m in Gbp) needs 500bp in ebit margin improvement over ten years to justify Ball's share price. Antitrust concerns and forced disposals may dilute the synergy potential.

2. Crown joins the dance floor and Ball gets under pressure, good for Rexam


3. No deal, Balls gets back to mid 60s.


4. Edit: The BoD tells Ball to raise the bar or pick up the ball and play somewhere else.

A case may be to be long Rexam short Ball?

alphahunter
Chat Pages: 57  56  55  54  53  52  51  50  49  48  47  46  Older

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