Smith (ds) Share Discussion Threads

[moorsie2] 25/2/2021 16:11

Unfortunately not.

Your maths are wrong for a start - 6 pound would be almost 50% premium over today

If someone offered me 5.00 for my shares in this company in cash I would bite their arm off.

5.35 in mix of cash and industry stock

[fhmktg] 25/2/2021 15:32

£6 per share would be a premium of 30% over today and at about the five year high, sound about right?

[moorsie2] 25/2/2021 15:30

Pressure back on the Board here to spell out their stragic plan to stay independent.

I do not think they can be a player medium term alone so they either need to go big or fold in with someone else.

I personally would like to see a power house player in UK and Europe to fend off global players. I think the logic for these two companies coming together are very compelling

[buyzantium] 25/2/2021 13:34

Have held these for many years now and would be disappointed to see a takeover succeed at any price below the August 2018 highs. I have always thought that it would be International Paper that would be the most interested. Perhaps a bidding competition in the offing? Time will tell but a strong hold and buy on weakness is my present approach.

[scooo] 25/2/2021 11:33

Must always be an indeterminate mixture.

SMDS Q3 Trading Update for the period from 1/11/20 is due next Wednesday 3/3/21. Interesting times.

[jeffian] 25/2/2021 11:04

The Mondi results were solid enough in the circumstances but not spectacular so does the current strength of SMDS reflect the takeover rumours more than fundamentals?

The irony for me is that I'm only in SMDS as a replacement for RPC which I didn't particularly want to sell. Here we go again?!

[scooo] 25/2/2021 10:53

Mondi possibly trying to get SMDS cheaply whilst profits are temporarily subdued by adverse Covid impact costs on its recycled paper inputs?

Thanks to Moorsie for his post of 24/1/21 highlighting a takeover article which mentioned International Paper as a potential predator. Dual/multiple interest would certainly improve prospects for the final outcome.

[charlotte2020] 25/2/2021 09:45

Cardboard prices turning up at last

[dbaker1980] 24/2/2021 22:01

The 7 billion dollars you mention is the market cap of smds.

[cw2000] 24/2/2021 20:25

Mondi Weighs Deal for $7 Billion Packaging Rival DS Smith
By Dinesh Nair, Ruth David, and Kiel Porter
February 24, 2021, 8:13 PM GMT+1
Tie-up would be one of the largest U.K. deals so far this year
Pandemic e-commerce boom boosts demand for cardboard boxes

In this article
MNDI
MONDI PLC
1,802.00GBp+35.00+1.98%
SMDS
DS SMITH PLC
384.00GBp+12.20+3.28%
Mondi Plc, the packaging and paper group, is exploring a potential takeover of British rival DS Smith Plc, according to people familiar with the matter.


Mondi has been speaking with advisers as it considers the merits of a possible transaction, the people said, asking not to be identified because the discussions are private. DS Smith shares have risen 2.5% in London trading this year, giving the company a market value of 5.3 billion pounds ($7.4 billion).

A deal between the two companies would be one of the largest announced in the U.K. so far this year, data compiled by Bloomberg show. Deliberations are at an early stage, and there’s no certainty they will lead to a transaction, the people said.

Representatives for Mondi and DS Smith declined to comment.
While a pandemic-fueled boom in online shopping has provided a demand boost for packaging companies, it has also led to piles of used cardboard that can’t be picked up and recycled quickly enough. That has pushed up costs for companies including DS Smith, which rely on recycled containerboard to make their boxes.

[troyboy13] 24/2/2021 19:34

Apparently Bloomberg running a story about a bid from Mondi - anybody heard anything? $7 Billion quoted

[dbaker1980] 24/2/2021 19:09

Another Betaville mention today at 15:04 followed by that nice rise.

[moorsie2] 18/2/2021 19:30

LONDON, 18 February 2021 (Press Release) - Due to increased input costs and continuing strong demand, DS Smith Paper is announcing a price increase of €50/T for its brown RCCM grades for all new orders placed from the date of this announcement. This announcement applies across Europe.

[clinton baptiste] 16/2/2021 09:35

Posted on the respected Betaville website at 15:54 yesterday - leading to some juicy buys:

Exclusive to Betaville Intelligence subscribers
UNCOOKED ALERT: DS Smith said to .....

Anyone have a subscription? :)

[oilslick1] 16/2/2021 08:20

Is private equity interested?

[moorsie2] 15/2/2021 20:02

Big write up in Thisismoney

[deadly] 15/2/2021 19:50

Highest for 2 years today.

[scooo] 09/2/2021 20:52

Tried to post link but unable to. See SMDS on Sharecast.

[scooo] 09/2/2021 20:48

[...]

BofA analyst Alexander Berglund said that containerboard prices are recovering and box demand is strong, fuelled by e-commerce, and the trend will continue. The cost of paper for recycling has almost doubled from 2020 and this will affect boxmakers Smurfit and DS Smith most. It will take those companies about a year to increase prices to protect margins, whereas Mondi is more insulated and has greater exposure to higher containerboard prices. He held his price target for Smurfit shares at £39. He cut DS Smith's price target to 410p from 440p, and 2021 and 2022 estimates by 10% each. He cut both shares to 'neutral' from 'buy'.
xxxxxxxxxxxxxxxxxxxxxx

It seems that home working has slashed recycling collections from offices, which together with the closure of schools, restaurants etc has cut volumes of recovered Old Cardboard Containers and lifted the price, to the detriment of SMDS input costs. Chinas refusal to accept imported OCC should however be providing some relief to supply pressures here. An accelerated rollout of vaccine programs would also improve the outlook with the resumption of a more consistent, plentiful & therefore cheaper OCC supply base. Slight doldrums may prevail until then.

[moorsie2] 09/2/2021 13:18

SKG results tomorrow will show us what we are missing...

Time for a changing of the guard

[fhmktg] 09/2/2021 11:36

This is looking marooned and unable to progress.Some clear indication of future business stability and dividend policy needed!

[phillis] 01/2/2021 11:24

It means higher prices all round

[dbaker1980] 01/2/2021 00:24

The card supply problem is real.