Rpc Share Discussion Threads

[steverabet] 31/8/2018 12:13

beckers, scrabbling around trying to adduce old bad news as an arbitrary explanation for an unexplained price drop doesn't really help. it's a bit like a drunk's relationship with a lamp-post - used more for support than illumination.
daily, weekly, monthly share price fluctuations are of no great import to a long term investor, depending on the type of company in which you invest.
actual news and actual profits are the only real metric for an established business.
no-one can really claim that RPC has got it 100% right, but the furore over plastics is overplayed. our 21st century lifestyle would collapse without them.
some of the portfolio elements are performing poorly, but thats what management is paid to focus on - improve the performance or get rid.

[beckers2008] 30/8/2018 20:45

Steverabet - Some very good points you make, especially churning out profits, albeit slowing growth. I did say, someone may?


The drop in the share price over the last two days could be due to the following;

Extract of RPC reported RNS “The preparations for the sale of the European injection moulding automotive business (comprising of operations at Zevenaar, The Netherlands, and at Rongu, Estonia) have started. It should be noted that there is a continuation of the significant under-performance at the operation in Zevenaar as a result of cost inefficiencies arising from last year's new product launch”

Car manufacturing in Britain fell by 11% in July, reported SMMT.
The British car industry is concerned about the possible impacts of Brexit because of its heavy reliance on the European supply chain and the EU’s status as Britain's biggest car export market.
This will hurt RPC's ability to sell the already under-performing European injection moulding automotive business, as Sales maybe falling through the floor?

[jeffian] 30/8/2018 19:16

Aye, and a nice 20.2p/share will be nestling in our bank accounts tomorrow!

[steverabet] 30/8/2018 19:12

beckers, not entirely sure what your point is. a 60p drop in 2 days is not exactly front page news. to insinuate that people are trading on inside information is scurrilous. shorters do exacerbate share price volatility, just look at interserve - from 55p to 110p and largely back down again. that is how markets work - share prices bouncing around on no real news is driven by greed/fear/risk/opportunity but RPC keeps churning out profits regardless

[mauricemonkey] 30/8/2018 19:08

So you’re again speculating that people are insider trading. Interesting.

As for “don’t know how the market works”, it was you who said if you borrow a £1M of stock to short, at the end of the borrow you owe the original owner £1M. Or that time you said stated wrongly what happens if you’re borrowing stock and the company goes bust. Clown.

[beckers2008] 30/8/2018 16:35

M,

The share price did breach 7.20 today as I indicated could happen this morning. Next target £7.00.

The share price has gone from 774.6p on the 28th August to a low of 714.6 this morning.

A drop of 60p in just two trading sessions tells me someone may know something is untoward and/or, there is a fair chance that the Shorts are increasing their position. Let's wait and see if they report any position changes?

You clearly do not have a clue on how the market works, you are 'Comedy gold' old chap lol.

[mauricemonkey] 30/8/2018 15:27

“Shorts are tightening their grip”
“Short position unchanged”

Comedy gold.

[beckers2008] 30/8/2018 10:58

Currently RPC down over 2% again. FTSE 250 down over 0.3%.
RPC is down over 5% in the last month and going by the SP, the recent RNS stating they are buying another 'Plastics' company has not gone down well.
It seems the Shorts are tightening their grip to squeeze this lower, will it breach 7.20 today?
Short position unchanged at 9.19%, maybe there will be a reported increase in the next few days?

[sogoesit] 29/8/2018 17:32

Well, I'm just posting market info. steve, without comment.
Lots of people don't think brokers get it right and fair enough.

Anyway, like you, I'm here on 2-5 year view. I think there's value here and my loss capacity is about 50%.
With a tendency to be contrarian the poor sentiment is in my favour.
Meanwhile I will be collecting my 20p or so on Friday!

[steverabet] 29/8/2018 17:15

i presume it's you, sogoesit. anyway, broker price targets are not a 24hour thing. i am up 12% in 3 months - without factoring in the div - so i am pretty relaxed about riding out the short attack. if any nasty news or bad numbers arrive, i may cut and run, otherwise status quo.

[sogoesit] 29/8/2018 14:50

Which "S" are you chatting with?

[beckers2008] 29/8/2018 12:49

S,

Numis and PH are not doing any good to the share price Sentiment prevails here.

To top it off RPC then go and buy another 'Plastics' company!!
Why not expand the successful China business, but could be a Trump tariff problem?

Over 1 million shares traded today, RPC currently down over 2.5%. FTSE 250 down over 0.3% seems the shorters are selling RPC down again. We will know in 5 days.
The rinse and repeat continues on a southward trend.

Britishbulls issued 'SHORT' yesterday so I got a AT Sell at 7.70p after the spike up to 7.74p.

SP has burst down through the 20 and 50 MDA, maybe support at 7.20 then 7.00.

[sogoesit] 29/8/2018 09:10

Numis and Peel Hunt re-iterated their Buys yesterday, TPs 1130 and 1230 respectively.

[steverabet] 24/8/2018 19:54

beckers there is no investigation. the FRC ask questions and conduct reviews as part and parcel of their remit. the only cases open, per the FRC website, pertain to (no surprise) carillion; mitie; BT; rolls royce; redcentric and sports direct. not RPC.
shorters will do what they will, the louder they shout and the more selling pressure they can exert, will inevitably lad to a drop in the share price, which is how these scavengers feed. ultimately, as long as the company isn't concealing anything nasty, this will blow over and as the shorts get closed, the buying pressure will restore the share price

[jeffian] 24/8/2018 19:38

You don't need "extracts", you can have a look at the whole thing immediately above. You are relentless, Beckers, and I'm not sure what you think you are achieving. If you don't like what you see, don't buy the shares or short it if you go in for that sort of thing.

[beckers2008] 24/8/2018 19:33

Page 76 of the RPC Annual report, Extracts;

"This letter has again been considered and an appropriate response was drafted and sent to the FRC on 28 May 2018"

The FRC have not responded or concluded their investigation.

Have a good look at the annual report and make your own mind up.

Dan McCrum of the FT merely pointed out that some in the market had read page 76 and not liked what they read as the share price fell 6%.

I'd like to see some evidence that the FRC have concluded their investigation and that RPC have answered all questions put to them and that the FRC are satisfied and conclude no more questions are required for this FY from the group.

[jeffian] 24/8/2018 19:17

This is the full section on the subject from the 2018 AR from which Beckers previously quoted selectively -

"Interaction with FRC Corporate Reporting Review Team

The Company received a letter from the Conduct Committee of the FRC
on 13 March 2018 that contained a number of questions to assist the FRC
in understanding how RPC had satisfied relevant reporting requirements.
The FRC Conduct Committee is a body appointed by the Secretary of State to review and investigate the annual accounts, strategic reports and directors’ reports of public and large private companies for compliance with relevant reporting requirements. The areas where further information was requested included Alternative Performance Measures, cash flow statement, provisions, judgements and estimates and operating segments.
The letter and its requests was considered with the relevant members of the Group’s finance team including the Group Finance Director and Group Controller prior to the preparation of a comprehensive response that was sent to the FRC on 19 April 2018. A follow up letter was received on 18 May 2018 which contained notification of the closure of a large number of the original points whilst asking for some further information. This letter has again been considered and an appropriate response was drafted and sent to the FRC on 28 May 2018.
Prior to receipt of the letter from the FRC, the Group had been considering
how to enhance various aspects of its accounting and disclosure. This was particularly focused on those areas covered by the Thematic Reviews issued by the FRC in late 2017. The 2018 Annual Report includes a number of enhancements reflecting this process, as well as addressing the matters raised by the FRC Conduct Committee in their letter.
The FRC has requested that we advise shareholders that their review of the Annual Report for the financial year ended 31 March 2017, provides no assurance that the Annual Report is correct in all material respects, as its purpose is not to verify the information provided but to consider compliance with reporting requirements. As such the FRC and its officers, employees and agents accept no liability for any reliance on its review by third parties, including but not limited to shareholders and investors."

[cashcow5] 24/8/2018 18:48

“As far as you can tell the FRC have not concluded their investigation”?

As far as I’m aware there is no investigation - there were a few questions asked (and answered) several months ago but that was all.

If I’m wrong then i’d like to see some evidence.

[beckers2008] 24/8/2018 17:43

S,

As far as I can tell, FRC have not concluded their investigation. A good day if RPC are given the green light.

The high level of shorting has just got a tad higher with OLD MUTUAL GLOBAL INVESTORS (UK) LTD increasing their short to 0.91% on the 21st August.
Total short stands at 9.19% of the stock, the highest % on record.

We have a long way to go until the interim's are announced on the 28th November, I would have thought the BOD would have bought quite a few shares at sub £8.00 as the closed period is not until mid-October.

Let's hope we get some good news soon.

[steverabet] 23/8/2018 21:14

@beckers - yes RPC and the FRC have been in correspondence. its what the FRC does. questions were asked and answered, RPC conducted a review. the performance of the company may well be masked by the level of M&A, a concern raised by northern trust but i don't see any smoke nor sign of a fire. theres plenty of vultures out there that obviously disagree, hence the rather high level of shorting, but - i hope - thats just short term profiteering. some will make a bit, others will lose - provided RPC doesnt go all carillion

[sogoesit] 22/8/2018 11:34

JP Morgan today raises TP to 1120 from 1110 - "Overweight"

[beckers2008] 22/8/2018 10:45

Someone asked me which authority was looking into RPC's accounts so as follows published by the FT on 20th June, sorry can't copy of paste full article for obvious reasons;

The annual report was published, a few people in the market actually read it.

What catches the eye is page 76, which describes inquiries by the Conduct Committee of the Financial Reporting Council, responsible for keeping a regulatory eye on the bean-counting industry and company accounts.

The Company received a letter from the Conduct Committee of the FRC on 13 March 2018 that contained a number of questions to assist the FRC in understanding how RPC had satisfied relevant reporting requirements.

The FRC Conduct Committee is a body appointed by the Secretary of State to review and investigate the annual accounts, strategic reports and directors’ reports of public and large private companies for compliance with relevant reporting requirements.

The areas where further information was requested included Alternative Performance Measures, cash flow statement, provisions, judgements and estimates and operating segments.

[beckers2008] 22/8/2018 10:25

As of RNS - 21/08/18 - GS;

GS now below 6% at 5.90%.

Another reduction of stock, their open lending position has reduced to 0.8% so they have lent out over 2,000,000 shares to the shorters to carry on the 'rinse and repeat' process.

Hopefully RPC will publish some good news soon or maybe an RNS informing of directors buying up some shares if they think they are cheap?

[beckers2008] 16/8/2018 09:10

M,

You really are not very good at this are you old chap!

As of RNS - 15/08/18 - GS;

Position of previous notification = 6.65%
Resulting situation on the date on which threshold was crossed or reached = 6.44%

That's a reduction of stock, happy to sell at the cheap price.

What is interesting is they have a open lending position of 5,543,873 shares - 1.37% of the stock. So happy to lend out to the highest bidder to short the stock.

I'm afraid we will see the 'rinse and repeat' for some time until they have had their fill and move on.

Short position unchanged at 9.16%

[mauricemonkey] 16/8/2018 07:14

Looks like GS are happy to take the cheap price.
Looking forward to the eventual squeeze.