Rpc Share Discussion Threads

[esther1975] 31/3/2017 11:15

You make some interrstingpoints jeffian. And as NT have tried to cast doubt on figures do you think that people will be looking at the statutory EPS figure with more scrutiny.

[philanderer] 31/3/2017 11:10

RPC has too many plates spinning, says Hargreaves Lansdown


RPC Group (RPC) is expecting revenues to be ‘significantly ahead’ and is planning more acquisitions but Hargreaves Lansdown has warned that the plastics company may be spinning too many plates.

Investors appear to agree, with the shares slumping 7.7% to 801.5p despite the positive update, on fears it is gearing up for more acquisitions.

The company issued a brief trading update for the year to 31 March 2017 that showed revenues would be ‘significantly ahead’.

Analyst Nicholas Hyett said following its rights issues earlier this year, RPC had ‘reloaded the war chest and looks prepared to return to the market’.

‘However, with several pretty sizeable plates already spinning we would prefer that the company sticks to smaller bolt-on deals for a while, at least until the newly enlarged group is properly settled,’ he said.

[wobaguk] 31/3/2017 10:58

I am a holder of RPC, not too much but am now almost 20 % down. I was 9% down prior to the recent drops, and now wish I had sold. I also took out a small long SB after the 10% drop of yesterday thinking it was an overreaction. How wrong could I be, got stopped out.

Now undecided if I should wait for some stability then cut my losses on the shares, or just ditch now

[essentialinvestor] 31/3/2017 10:55

Early investors here have made a packet, no pun intended.

[ganthorpe] 31/3/2017 10:52

I am not a holder of RPC but was looking at a buy following the rights issue , which often weakens a share price and gives a good entry level.
However the relentless acquisitions and fund raising is not for me. Even after today's falls the shares don't look cheap on P/E or dividend yield and as a former FT250 FD and analyst I would not be happy with the accounting treatments.
One poster mentioned that it was his second biggest holding - I think I would be trimming it if it was mine.
Regards- hope all goes well for holders

[qs99] 31/3/2017 10:28

agreed and useful posts all the above. This could be below £7 at this rate and as you say, until they rebutt some of these issues, it will be in the hands of the shorts IMO....but look at PAYS, hit £2.60 in an intra day low when hit by short attack, now sitting at £4.60.....sometimes these days provide opportunities....I'll hold on for somewhere in the £6 territory before dipping in, may not get the chance, but that will be around 50% of broker TP's....DYOR

[jeffian] 31/3/2017 10:24

Most of the market reports in today's Press attribute the fall to the NT note, with one I saw referring to a 'lack of detail' in the trading update. Someone above says "just watch the eps when we get new numbers" but, of course, this is exactly the area where NT are trying to sow doubt. Analysts' forecasts (Source: Yahoo covering 9 analysts) are for 57.53p this year and 67.44p nest which, on the face of it, make the shares look good value but those are "adjusted" eps figures stripping out all the costs of acquisitions etc. Last year's 43.3p (adjusted) was 19.4p on a statutory basis! I'm not saying I buy the NT argument (I don't), but in volatile markets the seeds of doubt can be exploited. I agree with Ed123, this smells like a concerted attack.

[ed 123] 31/3/2017 10:17

Yes, true, EI.

If the share price is taken down low enough, it could make the funding of acquisitions by rights issues uneconomic. So, maybe the decision to stop will end up being made for them?

I'd like to see RPC issue a statement to the effect that they were going to place a two year moratorium on takeovers. If management are confident about their adjusted costs, they can afford to do this = face down the sellers.

[3rd eye] 31/3/2017 10:16

Sorry youve lost a few bob shauney even tho you looked like you would make a nice profit yesterday.

Its about time the FCA grew balls and started to get a grip on situations like this.

[3rd eye] 31/3/2017 10:10

Shauney and others last audited accounts............

INDEPENDENT REVIEW REPORT TO RPC GROUP PLC

Report on the condensed set of financial statements

Our conclusion

We have reviewed RPC Group Plc's condensed financial statements (the "interim financial statements") in the half year financial report of RPC Group Plc for the 6 month period ended 30 September 2016. Based on our review, nothing has come to our attention that causes us to believe that the interim financial statements are not prepared, in all material respects, in accordance with International Accounting Standard 34, 'Interim Financial Reporting', as adopted by the European Union and the Disclosure Rules and Transparency Rules of the United Kingdom's Financial Conduct Authority.

PricewaterhouseCoopers LLP

Chartered Accountants

Birmingham

30 November 2016

Responsibilities for the condensed financial statements and the review
Our responsibilities and those of the directors.

The half year financial report, including the interim financial statements, is the responsibility of, and has been approved by, the directors. The directors are responsible for preparing the half year financial report 2016 in accordance with the Disclosure Rules and Transparency Rules of the United Kingdom's Financial Conduct Authority.

Our responsibility is to express a conclusion(ABOVE) to the company on the interim financial statements in the half year financial report based on our review. This report, including the conclusion, has been prepared for and only for the company for the purpose of complying with the Disclosure Rules and Transparency Rules of the United Kingdom's Financial Conduct Authority and for no other purpose. We do not, in giving this conclusion, accept or assume responsibility for any other purpose or to any other person to whom this report is shown or into whose hands it may come save where expressly agreed by our prior consent in writing.

[spoole5] 31/3/2017 10:07

When every broker is bullish on a stock i worry. The lone dissenting voice is sometimes the correct one. E.g. Enron.

[essentialinvestor] 31/3/2017 10:04

Ed, they did themselves no favours by once again mentioning
opportunities for further acquisitions, is it possible they could release
one statement without a reference this.

[shauney2] 31/3/2017 10:01

They all make money from deals and research.
Do you think Northern Trust are a charity?

[ed 123] 31/3/2017 10:00

I'm not holding any RPC (used to be a holder) but even I, without any skin the game, think I see a concerted attack. It's tactics like waiting for what was always expected to be a bullish trading update and selling then. They wanted some buying strength to get their shorts away.

To my mind the short sellers are not waiting for the market to discover the true value of RPC, they are actively taking the share price down.

There are no short disclosures yet (ie. >0.5%). Maybe several institutions having a go at less than 0.5% each?

RPC is not yet in its close period (begins end of next week). The directors have a few days to go into the market and buy shares. Significant buying by directors could make a statement - though it may not be enough to stop this train?

At some point it will reach the bottom and bounce. Where that will be I don't know and I won't be putting any money into guessing it. This is a high rollers den, out of my league.

[spoole5] 31/3/2017 09:54

Don't forget northern have no vested interest here. The other mostly supportive brokers benefit from the deals RPC are doing and will want to continue to benefit from the fees that flow from them.

[qs99] 31/3/2017 09:43

wow, that is still some sell off....brokers all appear positive and likely following management meetings....wonder where it will settle? and if it does, may provide a buying opportunity IMO.....at this rate below £7! ouch ....personally think the team have continued to deliver over last 2-3 years....DYOR

[cyberian] 31/3/2017 09:33

The non Ex Dir. appointment yesterday appears to have been overlooked...she has an outstandong pedigree even with one of the UK's key Ministries. Doubt whether she would have joined if any doubts on financial integrity of the Board, The Nothern Trust comments were out a few days before the company trading update so not sure why the delayed trigger yesterday in such a negative manner...NT are not a major name compared to others who appear more supportive.

[ed 123] 31/3/2017 09:27

Ta, 3rd eye. :-)

On the face of it, the numbers are indeed supportive. However, there are concerns (Northern Trust) about the adjustments used to arrive at adjusted profit.

If RPC were to run what it has for, say, two full years without any acquisitions, then all the exceptional costs should just about have disappeared and the market would be able to see the true underlying performance. I can't see RPC doing that, though. Why would they let an attacker deflect them from their business plan?

So, everyone is left in uncertainty and that is ideal for the short sellers to go to work. A burst of selling to take out stops and the price settles lower, so it goes down in steps ... 777p as I type, down another 33p so far today.

[shauney2] 31/3/2017 09:24

Well done for getting that note 3rd eye.

I doubt ft.com will publicise that as they did for Northern Trust note from the 22nd March.

JP Morgan Cazenove reiterates their overweight stance and target of 1250.00

Ps the Northern Trust note runs to 38 pages.Call me an old cynic but you don't put in that much work unless you intend to benefit in some way.

[invisage] 31/3/2017 07:54

Debt will fall as some of the placing funds used to pay down debt. Worth watching 2020 vision video on rpc website as to what they are looking to achieve long term.This is a highly cash generative business providing a product for everyday essentials. I expect it to do well overtime.What's important for me is investing in a quality business and ignoring short term noise in the share price. The business appears to be delivering according to the RNS statements so the share price will sort itself out with time.

[esther1975] 31/3/2017 07:50

Sorry 3 time

[esther1975] 31/3/2017 07:48

EPS is forecast around 57p. Rpc is now trading on PE of just over 14 which is about sector average. Pre tax profits forecast is for 253 million. Net debt from interims was 888 million. Which is about 4 times. Be interesting to see whether net debt is falling in finals

[essentialinvestor] 31/3/2017 07:45

Nimble traders can probably get in/out quickly. DON'T bet the farm on this if
you decide to buy, just my take.