Smith (ds) Share Discussion Threads

[buyzantium] 13/6/2019 07:58

Unsuitable weather this morning to continue wearing shorts might I suggest.

[nickname27] 13/6/2019 07:52

Beat everything handsomely and raised guidance and dividend. Normally this causes it to drop like a stone. Because one day the universe will end and the analysts are nervous that they might be a bit too exposed to that.

[jurgenklopp] 13/6/2019 07:48

Read and then re-read the announcement.

Cannot see anything to be worried about.

Very good value at current levels IMO.

[mboy010] 13/6/2019 07:37

Pleasingly there is no ‘but’ statement. Still a medium/long term hold and whatever the mm’s do to the share price today it isn’t an indicator of the value here.

[ygor705] 13/6/2019 07:35

Agree that the numbers look ok with nice increase in the divi. I make the yield just over 4.7% which is well covered and backed up by a solid business outlook. The updated PE is just over 10 ...... hardly a demanding rating. The shares have performed poorly since the European acquisition and rights issue and I'm not entirely that this is deserved. Have bought more recently and am hoping for a little more stability going forward.

[togglebrush] 13/6/2019 07:23

Results on first reading look good
'
Synopsis
'
Profit before tax up 35%
Free cash flow up 84%
Robust balance sheet - pro-forma net debt/EBITDA <2.0X
Market outperformance - volume growth at 2.4%
Organic adjusted operating profit growth of 9%
'
Acquisition of Europac - upgrade to synergies from EUR50m to EUR70m
Sale of plastics division agreed
'
Dividend increased 11p (10p) xd 4 Oct Paid 1 Nov

[stevieweebie2] 12/6/2019 09:18

Sorry if already posted.

[lord gnome] 11/6/2019 15:01

Can't see a link with Woodford here, EJ. Have I missed something?
I am watching NRR at present. Woodford still has 15% to clear and the shorters are out for half that amount. It's a big game of chicken with the shorters. How low can it go before I just have to hit the buy button?

[lord gnome] 11/6/2019 11:30

Looking strong again today as we get nearer to results. Is this hope or expectation?

[lord gnome] 10/6/2019 12:54

Usually it is, Peter. Witness the effect of stocks held by Woodford. They know he is a forced seller, so they are shorting those stocks to drive down the price still further. Occasionally, the shorters get burned - hopefully this will be one of those occasions, but it depends on the upcoming results and the outlook statement.

[petersinthemarket] 10/6/2019 12:19

I only work the long side. I know nothing about the short side. For those who do, how should we think about the increasing short position. Is a strong or growing short position almost always a successful drag on the sp?

[gabsterx] 10/6/2019 09:57

Great news, meanwhile earnings and dividends keep rising and we get to buy it at a lower price. Thank you Mr Market!

[togglebrush] 10/6/2019 09:08

FWIW____Press

Extract
"Hedge funds have taken aim at cardboard box maker DS Smith ahead of the publication of its annual results next week, betting that a recent slump in its shares will drag on.

About 4pc of the FTSE 100 giant’s shares are now on loan to short sellers including Citadel Europe, Coltrane Asset Management and Marshall Wace, up from less than 0.5pc in December. The combined short position is worth roughly £180m, based on Friday’s share price."

[fhmktg] 08/6/2019 08:00

Let's see if there are any direction pointers in the results this next week.

[97peter] 04/6/2019 19:04

SMDS is on its way back, investors have realised the divi and the board/direction are all aligned and onwards and upwards. The corrugated and packaging will soon catch up and overtake plastic as public opinion and government intervention make plastic too expensive and publicly turned against. SMDS are in the right position to take advantage across EU and UK/US.

[essentialinvestor] 04/6/2019 14:57

If you are holding a packaging company through the cycle
there will be some very pronounced moves.
I hold SKG, and it would not surprise me in the slightest if
that fell to around 14/15 in the next recession - if anything that
view may be too optimistic.

Would expect more sector consolidation, but that's just guesswork.

[lord gnome] 04/6/2019 14:40

I don't use a rigid stop loss, alotto. Normally, if the story doesn't change then I will hold on to a share. I try to keep a daily eye on the markets and review my holdings as we go along. Sometimes this has proved costly, but on other occasions it has worked to my advantage. I do get blindsided sometimes when a share is going south. Failing to sell VOD when it first dipped below £2 has cost me plenty. Made the biggest mistake possible when I averaged down. Never average down!
Mostly high yielders on my watch list. AV., NRR (Woodford factor here), MARS / GNK, LLOY as a trade if it gets down anywhere near 50p. I also have a couple of smaller coys. FLO is one that I particularly like, also AIEA.

Apologies to others for the off-topic.

[mwainw1973] 03/6/2019 12:13

Get into Dish and Bidstack

[alotto] 03/6/2019 10:07

Hi Lord,

I bought £5K at 350p too. Do you have a stop loss set and to what level, if I can ask?
What do you have on you wish list (if you don't mind me asking this too!)?

[dr_smith] 03/6/2019 09:41

Yep me too.
It is added annoyance that the outlook is not world economics of supply and demand, population growth and spending habits, but Administrators not administrating.

Both Trump and Brexit are adversely affecting everyone, when good sensible and dare I say timely negotiation would take away unnecessary concerns and perhaps even allow us to do something on the green issues - that Trump also obstructs rather aides.

Dave

[lord gnome] 03/6/2019 08:45

That's my view as well. I thought I had a good deal when I bought at 350, but the market had other ideas. I have plenty of other stocks on my buy list that are doing the same as SMDS. Lots of bargains about and they could get even cheaper. Trying to keep cash firmly in pocket until then. When I do come to buy I will be like a kid in a sweet shop.