Rpc Share Discussion Threads

[gettingrichslow] 06/6/2018 15:52

Jeffian, you're probably right on that - I'm going to mow the lawn!!

[jeffian] 06/6/2018 15:38

#1848,

Sorry to flog a dead horse but, even if that were so, they can only be talking about 'organic growth' from the existing businesses ("underlying organic growth ahead of GDP and to improve the adjusted operating profit of the core businesses") whereas the greater part of their growth has come from acquisitions and that is likely to continue ("The strategy combines a focus on organic and acquisitive growth"). They can't be forecasting profits from businesses they don't even own yet!

[asturius101] 06/6/2018 15:06

well done to those who held / added today

[asturius101] 06/6/2018 15:05

go mow the lawn grandpa

[jonwig] 06/6/2018 14:57

Having read the FTMarketsLive column, where Northern Trust says "the most aggressive accounting we've ever seen" and Panmure says buy up to 1200p, what to do? One way is to spend hours over past years accounts.

Another is to go away and mow the lawn.

[sogoesit] 06/6/2018 13:21

True, the direction of travel is to impoverish the western populace by the do gooders, like energy policy, while the far eastern populace benefits and grows richer by not heeding any of this guff.
Reminder, growth rates are greater than 6%pa in China and have been for a while versus Europe growth rates of practically zilch. What’s the point? China isn’t going to listen and then, hypocritically, when China produces dirt cheap solar panels the EU call it dumping.
These folks are mad.
Rant over.

[gettingrichslow] 06/6/2018 12:19

Just because RPC don't make any of the things covered by the EU directive doesn't change the general direction of travel surely? There could be more directives over the next few years couldn't there? When the first clampdown on tobacco advertising happened in the 1970s - it wasn't the last was it?!

[jeffian] 06/6/2018 12:16

I'm afraid I'm a bit of a pedant, but whatever they meant to say, I still think it actually says >GDP growth plus £50m otherwise why mention at all "We target through the cycle underlying organic growth ahead of GDP" rather than just saying an extra £50m by 2021 full stop?

[bouleversee] 06/6/2018 12:14

Sogoesit -

Anyone who can read knows that so still don't understand the big drop in share price Am seriously considering topping up all the family's holdings which I manage even though we are already slightly overweight. In the end you have to back your own judgement.

[jeffian] 06/6/2018 12:03

Indeed. I wonder if any clarification will come out of the results presentation?

[sogoesit] 06/6/2018 12:01

The interactive investor put this out today.
RPC don’t even make any of the stuff the EU is going to regulate!
FFS!

“RPC GROUP down 15%. The plastics company reported a doubled pretax profit of GBP316.6 million for the year to the end of March from GBP154.7 million the year before, on revenue that grew by 36% to USD3.7 billion from USD2.7 billion. However, RPC noted that on late May, the EU Commission proposed a ban on Single use Plastics, which includes plastic straws, cutlery, plates, cotton buds and balloon sticks. RPC said it "does not manufacture any of the items that will be restricted under the proposed EU directive, and is proactively working with the policy makers and industry bodies to best achieve their wider goals".

[bouleversee] 06/6/2018 11:43

Jeffian -


From ADVFN's morning markets bulletin:


"RPC Group continued to melt lower amid market worries about the crackdown on plastic waste, despite a successful year turning plastic into cash and dividends, with management trumpeting the "unprecedented" opportunities for growth in the market. Impatient investors may be displeased that RPC expects adjusted operating profit in the core businesses to improve by 'only' £50m by the financial year to March 2021."

Looks like they took it the other way.

[asturius101] 06/6/2018 11:39

#1838 not at all biased, ofcourse

[justiceforthemany] 06/6/2018 11:26

Trading at just 9x earnings

[zho] 06/6/2018 11:12

According to Northern Trust analyst Paul Moran, RPC management has been encouraged to pursue value-destructive acquisitions by “innovative” bonus schemes and “some of the most aggressive accounting we have seen”.

[asturius101] 06/6/2018 11:10

#1833 agreed.

[bouleversee] 06/6/2018 11:03

Jeffian -

I'm usually like your Mum. Already regretting selling one of my SKY holdings at more than the Comcast bid, with a good profit but it would seem lots more to come. Thought I was being clever but doesn't look like it.

[jeffian] 06/6/2018 10:51

bouleversee,

Re cash, they seem to be generating it OK and, as I said before, you have to decide for yourself whether they are spending it wisely! Net debt in the period increased by £90m after they chose to spend £163m on acquisitions and share buybacks.

My Old Mum used to operate an investment policy of Masterly Inactivity - I don't think she ever sold a share - and, whilst I teased her for it at the time, over 60 years of holding mainly blue chip shares did her very nicely indeed (even factoring in the GEC/Marconi fiasco). I regret selling shares more times than I call it 'right' and I gave up running a dummy portfolio of those shares I had sold because, depressingly, it was consistently my best-performing portfolio! Funnily enough, your favourite FSJ was in it - I got stopped out on some short-term and unexplained dip only to watch it subsequently rise about 5x. Like you, I shall be sitting this one out calmly.

[bouleversee] 06/6/2018 10:49

One certainly needs an interpreter, Jeffian. Communication is not their strong suit. I'm not sure you are right, though that's also how I read it first time, but hope you are. It could be taken either way, however. How about asking them? We shouldn't need to be debating this point, should we?

It's about time they provided links one could click on as well.

[jeffian] 06/6/2018 10:40

#1809 & 1820,

I saw that bit but are you sure you interpreted it right?

"We target through the cycle underlying organic growth ahead of GDP and to improve the adjusted operating profit of the core businesses, including the contribution from the recent Nordfolien acquisition, by at least £50m by the financial year ending March 2021."

Maybe I misunderstood, but my interpretation of that is that they are targeting an additional £50m over and above "underlying organic growth ahead of GDP".

[skinny] 06/6/2018 10:40

Not a bad philosophy!

[bouleversee] 06/6/2018 10:31

gettingrichslow -

Well that might come down to whether it's better to be a lemming or a contrarian. I think I'll go and do some gardening while the dust settles. I have no need to sell and can afford to take the long view. Am not a trader and just want a reasonable income without losing my capital. Am still up a lot on my average price. When in doubt, do nowt is my usual position.

[asturius101] 06/6/2018 10:30

agreed - there is no good reason for the drop...have also added further in the 650'sas the saying goes, buy when everyone else is selling....

[hatfullofsky] 06/6/2018 10:26

Great opportunity to top up / open a long spread bet. Massive over reaction as is normal nowadays (SGE a good example). MCAP now c2670M @ 655p with statutory profits of £316M and Op Profit of £425M, puts it on a multiple of x8.5 / x6.3 respectively. Although the expected growth is 12% over 3 years it is still fantastic value.

Buy the dip, I expect this to be back over 700p in short order, if not today, in a matter of days if not today.

Intersting what IC will make of it tomorrow, currently have a Hold rating at 792p (7th Feb) based on 4% organic growth. 2.8% reported today.