Rpc Share Discussion Threads

[1corrado] 06/6/2018 10:25

so do i at 657.

[skinny] 06/6/2018 10:24

Well I've taken a punt @658.

[bouleversee] 06/6/2018 10:22

redartbmud -

Agree that that doesn't seem to make sense and the one thing that worries me is whether the buybacks were more to do with directors LTIPs (not that I have studied them) than the interests of shareholders and whether the increase in dividend is sustainable.

[gettingrichslow] 06/6/2018 10:15

Bouleversee, I think "I'm happy to wait and see" is the key bit I take from your post just now. You might be but looks like others aren't and they're getting out now! I suspect many of them are piling in to DS Smith instead, judging by their recent surge...

[bouleversee] 06/6/2018 10:09

gettingrichslow -

I did take that on board but I can't see that it justifies a big drop in share price in addition to 20% previous drop. It's not as if they forecast no growth or the PER is high and yield low. How many other companies are consistently increasing their dividends and by l7% this year? If the cashflow situation supports this and the div. is well covered, I'm happy to wait and see as regards future growth which could be a conservative estimate and be much improved in the event. Could also be worse, of course, but that applies to all forecasts and the present situation is better than most. Seems to me that it's either a screaming buy or there is something that we still don't know, but what do I know?

[redartbmud] 06/6/2018 10:00

They knew the guidance, but they still bought back shares at up to 20% above the current market price. Enlightened board of directors. Hmmm....

[skinny] 06/6/2018 09:52

Sorely tempted at these levels..

Final dividend of 20.2p giving a full year dividend of 28.0p, representing an increase of 17% on last year and the 25th year of consecutive dividend growth

[bouleversee] 06/6/2018 09:51

Plootocrat -

How does 6.74% short rate? Heavy or light?

[gettingrichslow] 06/6/2018 09:50

Sorry everyone but I think a lot of you on here are missing the key issue here, which 'hatfullofsky' correctly identifies about 10 posts ago! It's all about the future growth guidance which I'm afraid is rather hidden but rather important! See post 1809.

[billywhizz1] 06/6/2018 09:46

Average share price yearly target - 11.92
EPS forecast - 0.64
Cash flow forecast - 1.23
S/M response - 100+ share price Drop.
Is there something going on that we all don't know about ? Can someone please let me know !

[plootocrat] 06/6/2018 09:40

Anybody interested in the latest short position should have a look here:

[pre] 06/6/2018 09:38

Looks like some panic sold this morning with stops being hit.

Also in the rns today:

The FTSE 250-listed plastics products manufacturer company said it "does not manufacture any of the plastics products that will be restricted" under the new proposed directive by the EU commission.

[plootocrat] 06/6/2018 09:37

The EU's intentions with regard to single-use plastics have been known since January so how do they explain today's sudden share price fall?

[pre] 06/6/2018 09:21

Peel Hunt buy rating 1250p target.

[ali47fish] 06/6/2018 09:20

Here's the answer as to why the share price dropped

Alliance News

RPC Profit Doubles But Shares Down In Fear Of EU Commission Directive
Wed, 6th Jun 2018 09:52


LONDON (Alliance News) - Shares in RPC Group PLC dropped on Wednesday despite profit for its recently ended financial year doubling on the back of revenue growth as the EU drafted a directive banning the use of certain plastic products in late May.

Shares were trading down 12.3% on Wednesday at market open at 678.60 pence as the EU Commission launched a new directive on the single use of plastics worrying shareholders.

The FTSE 250-listed plastics products manufacturer company said it "does not manufacture any of the plastics products that will be restricted" under the new proposed directive by the EU commission.

The group posted a doubled pretax profit of GBP316.6 million for the year ended March 31 compared to GBP154.7 million year-on-year.

Revenue amounted to GBP3.7 billion up 36% from GBP2.7 billion the year before driven by several acquisitions including the latest buy of German packaging firm Nordfolien GmBH in mid-March for EUR75.0 million.

"The responsible use and disposal of plastics received an increasing amount of attention during the year, and recyclability and reusability have become key design criteria for our customers, RPC is committed to working with its customers to improve the environmental sustainability of products and, through its focus on innovation, coupled with in-house recycling facilities, it is well positioned to do so," the company said.

The company issued a final dividend of 20.2 pence per share, taking the full-year dividend up 17% to 28p from 24p the year before.

By Elena Cherubini; [e-mail].

[discodave4] 06/6/2018 09:13

Had these on my watchlist for a while, will have to review again.Only negatives IMO, they are selling Companies that contribute 6% of revenue and unless they acquire more astutely to fill this gap then earnings growth will / could decline as organic growth is minimal. Going on the fact they have spent £1.5bn on acquisitions over the past two years and ROCE has been falling doesn't inspire confidence or future growth IMO.DD

[pre] 06/6/2018 09:10

100k buy just went through..

[bouleversee] 06/6/2018 09:07

Jeffian -

Would appreciate your comment on the cash flow situation quoted in FT article above.

[hatfullofsky] 06/6/2018 09:03

Reaction is possibly due to the future growth guidance. FY18 Op Profit £425M targeting and increase of £50M by 2021. 12% over 3 years.

[jeffian] 06/6/2018 09:00

#1795,

No offence taken! Do feel free to put me right, though.

[riverman77] 06/6/2018 08:59

This is frankly one of the most bizarre market reaction I've ever seen. Perfectly solid results, and bear in mind the share price was already bombed out. Can't see anything of concern in these numbers.

[bouleversee] 06/6/2018 08:50

I give up. What's the shorting situation?

[melody9999] 06/6/2018 08:45

RPC should speak to SYM. Posting this on the SYM thread too! Disclosure: I hold SYM but not RPC

[hatfullofsky] 06/6/2018 08:43

RPC.L is looking to sell
non-core assets with total revenue of 209 million pounds ($280
million), as the British packaging company seeks to sharpen its
focus on higher-value plastics that can be recycled or reused.

Surely good news !?