Rpc Share Discussion Threads

[jeffian] 27/4/2017 12:13

Whilst I didn't 'buy' the Northern Trust scare stories, there is no doubt that it had an impact and the shares seem to have gone into 'wait and see' mode. If that is the case, it would be nice if the Board directly addressed the issues raised when the full year results come out on 7 June.

[fez77] 27/4/2017 11:13

Well, I'm doing ok with this one (at present!).

Latest Broker forecast - Credit Suisse 19/04 Reiterates Outperform 1,175.00p.

Final results 7 June.

[jeffian] 13/4/2017 17:47

This is the latest Hargreaves Lansdown view -

"RPC Group - down 20.8% (3 months to 31 March 2017*)

There’s plenty happening at plastics manufacturer RPC.

The group’s updates on current trading belie the share price fall. Although RPC hasn’t given much detail, it has consistently said trading is ahead of previous management expectations. However, organic growth is not the cause of concern. While acquisitions have always been a big part of the growth story, the pace of expansion is testing the market’s resolve.

The Letica business is RPC’s first major step into the US market, and the group took in the region of £550m from shareholders in a rights issue in order to fund the deal. Other recent acquisitions are not yet fully integrated, including BPI (£261m) and GCS (€650m).

These deals have led to an improvement in buying power, and other benefits, such as cost synergies, are being realised. However CEO Pim Vervaat has alluded to the potential for further deals already.

There will be a limit to how many plates the group can spin at once, so we’re not entirely surprised to hear a few disgruntled rumblings. We wouldn’t mind the group completing a few smaller bolt-on deals here and there, but we’d rather it put major acquisitions on the back burner until the current batch have settled.

There has been some speculation that the constant flow of deals is being used to hide a lacklustre underlying performance. With little operating detail announced since Christmas there’s no evidence to support that supposition yet, but it has clearly spooked the market, contributing to the steep share price fall.

All this means that we’ll be paying particular attention when full year results are released in June. These results will provide an opportunity to demonstrate the current acquisitions are bedding in nicely, and show the doubters there are no cracks in the plastic. The shares currently offer a prospective yield of 3.2%.

*This price change assumes that investors took up their rights in full in the 1 for 4 rights issue earlier in the year."

[alastair33uk] 07/4/2017 13:57

I wonder whether we're going to see a turnaround in the near term.

[mfhmfh] 06/4/2017 12:28

rated as a buy in IC today quoting 'Credit Suisse's sector guru'

[phillis] 03/4/2017 08:47

have a look at the retained earnings progression

[jeffian] 02/4/2017 11:38

What? Sell at the bottom and buy at the top?

;-)

[from8to800] 02/4/2017 07:33

Price peaks before fundamentals. Trust the price, not the story - that's my rule anyway.

[mellorscarthwaite] 01/4/2017 13:36

Mauricemonkey "I can't see that anything's changed here except the price."
Neither can I

[cheshire pete] 31/3/2017 23:12

It seems that the analysts are struggling to keep pace with this rapidly growing company. It does not follow that the company's 2020 growth strategy is flawed or that the management have misjudged their recent purchases. Yes there will be uncertainty while the new businesses are assimilated and this has helped the bears to profit short term. Bought in at c£4 a few years ago and, given the management's track record, I remain confident in the company's longer term prospects despite the current share price volatility.

[mauricemonkey] 31/3/2017 15:58

Doubled my holding to 20% of portfolio @ £7.54 (before fees). I can't see that anything's changed here except the price.

Time to buckle in for the ride :)

[pdriccio] 31/3/2017 15:54

I saw this happen to DCC late last year / earlier this year.

Price fell from £72 to £58 taking out many P.I's stop losses.

Since then institutions have been piling in and is now at £70.

As Invisage says if you've done your homework and trust the management then this could truly be a great opportunity.

[cashcow5] 31/3/2017 14:45

my thoughts exactly Invisage

[invisage] 31/3/2017 13:55

Worth bearing in mind RPC have 22 years of consecutive dividend growth.One has to look at the track record and back the management based on their history tbh.Investing is not suppose to be easy, volatility is inevitable. If you have done your homework then all this volatility is simply short term noise IMO. People appear to be panicking and as usual the city will clean up cheap shares.

[shauney2] 31/3/2017 13:07

I like hindsight trading 3rd eye.
Look at MCGN and ZYT.You want find me on them threads at all;-)Both broken out today.

[alphabeta4] 31/3/2017 13:02

I spoke to the CEO on an analyst/investor call on the day of the last acquisition asking him if that was it for now and how did they plan to integrate smoothly what had been a significant number of acquisitions in a short time. The response was that he wasn't done and viewed there to be a big consolidation opportunity in the sector and said they kept the management of the acquisitions on board when they acquired.

This left me nervous for a couple of reasons. Firstly there must become a point where too many are being done at once. Secondly this seemed to over rely on the old management to integrate into the new business but presumably the reason they've been able to buy them is because they're not viewed as well run as RPC are and I would doubt are always experienced in carrying out these sorts of integrations.

I subsequently sold and then bought back lower down where I thought this was properly discounted. Kicking myself a bit because all the analysts were talking about things like CAGR and it's my straight forward question which has been the one that has spooked the market! Should have followed my gut instinct and left this alone for longer.

[3rd eye] 31/3/2017 12:38

AND in the last 48 hours.

[spoole5] 31/3/2017 11:38

You mean the same brokers with buy recommendations and 12 quid price targets?!!

[ed 123] 31/3/2017 11:26

Yes, Spoole5. "Five Shares to Watch in 2017"



Also, I expect we'll see those broker targets being reduced over the coming months.

[spoole5] 31/3/2017 11:18

Says HL who had RPC as one of their shares of 2017 a few months back!!