Smith (ds) Share Discussion Threads

[essentialinvestor] 21/6/2023 16:11

Weaker European macro is weighing. It is a cyclical sector which some
tend to forget,

[andplus] 21/6/2023 16:05

The more Powells talks the lower shares drop

[riverman77] 21/6/2023 14:40

Mondi down too so could be a sector thing.

[justiceforthemany] 21/6/2023 14:31

Wow, the markets are regulated aren't they by the FCA?
Leak before results, surely not?

PS. Bid territory

[nonwoke] 21/6/2023 14:06

Clearly a leak of tomorrows update, which seeing the share price direction points to it not being too good

[dondee] 21/6/2023 13:28

Anyone any idea why this one keeps falling?

[essentialinvestor] 16/6/2023 16:30

Just mentioned the same on the Mondi board. Added to SKG this week.

Pulp prices plunging atm.

[buyzantium] 16/6/2023 16:27

Trading statement next Thursday.

[essentialinvestor] 02/6/2023 11:48

The old adage is buying a cyclical on a low multiple is an efficient way to
destroy 50% of your capital and this sector is lowly rated atm!. I hold SKG and
a few Mondi just to say.

It's not just confined to the UK, US listed packaging stocks are also
selling on not much over 10/11 X.

[2vdm] 02/6/2023 07:47

I agree with both jeffian and RCTurner2. Value will out (eventually)imo.

[rcturner2] 01/6/2023 06:57

I am a value investor and I bought this share as it looks like a classic value play to me. The one thing about being a value investor is that you have to be patient. Often these types of share are ignored by the market, you have to take your dividend and ignore the share price. Worrying about short term price moves simply leads to overtrading, which destroys returns.

[jeffian] 31/5/2023 20:12

#4176,

I have quite a substantial holding which I bought in substitution for my shares in RPC which was taken over. It's a 'horses-for-courses' type of share. If you are a trader, or looking for short term profit, it has clearly been disappointing but it fits the bill for me by being on a low PER (therefore with less downside and more potential for upside) and a decent dividend. I'm not that interested in where it will be in a year's time but clearly I would like to see growth in the longer term, with the dividend to keep me happy while I'm waiting.

[cruelladeville] 31/5/2023 19:53

Must say, it's a mystery to me why this share isn't far more highly valued. At home we have way more cardboard packaging to recycle every week than we ever had before. Sometimes we get three deliveries a day from Amazon. Plus all the other stuff that's delivered these days, all of it in far too big cardboard boxes padded out with yet more paper padding. Often there's one box directly inside another one. I bought this share as a play on packaging for home delivery. Our consumption of cardboard has probably increased 10x over the last five years. I guess everyone's has. So why is DS Smith not worth far more? No idea.

[sun1950] 31/5/2023 15:06

Remember also after the year end there is a 10p dividend in this price so the market values them at less than £3

[sun1950] 31/5/2023 11:33

I am sorry to say that I have lost faith with this share I am all in at 306 and will look to sell if this ever gets back to 312 If the CEO mentions lower volumes or a slow start to the new year then I only see this going south. Yes this share is undervalued but the market is only looking at lower volumes meaning lower profits and with the economy the way it is it’s hard to come up with reasons for the share price to move up significantly

[mcunliffe1] 24/5/2023 14:33

If the financial services industry worldwide implodes because of high inflation, low-growth and US budget issues perhaps the increase in Bankers Boxes for redundant staff possessions will benefit Smith (DS) :-)

It's a mad market.

[mcunliffe1] 22/5/2023 15:58

Bought at £3.164.

[essentialinvestor] 22/5/2023 14:55

Remember the sector is cyclical and earnings can fluctuate markedly, so there are no guarantees on the pay out. Tbf a dividend is never guaranteed.

Agree on sector consolidation, a lot of that to come.

[mcunliffe1] 22/5/2023 13:31

anhar - I appreciate your advice. Income is my aim and this share yields slighty above 5%. Thanks for the update on the ex-div date (Dogwalker) as well anhar.

[dogwalker] 22/5/2023 11:22

Last year it was 6th Oct.

[anhar] 22/5/2023 11:16

MCunliffe1: I'm looking to invest a modest amount in SMDS via my SIPP. I believe the (final) ex-div date is 15th June...

It won't be 15 June. Annual results for the year to 30 April are due out on 22 June so the final div xd date, yet to be announced, will be some time after that. Historically it has been in October though with the latest interim they brought forward the date compared with previous years, so they may do that with the final.

...I see the share price is not at a low point but heartened to read some belief in a possible takeover...

Ignore bid talk, it's all hot air and wishful thinking from people who know nothing. If as you say you are considering this share on income grounds, and I'm also an income investor, then consider it on that basis alone.

[mcunliffe1] 21/5/2023 09:17

Thankyou RCT2 - I need to diversify somewhat and this company appeals.

[rcturner2] 20/5/2023 20:43

I bought in recently, it meets my tests and I think cardboard packaging is a good place to be. The last set of interim results were good and the statements recently all implty this company is doing well.

[mcunliffe1] 20/5/2023 10:05

I'm looking to invest a modest amount in SMDS via my SIPP. I believe the (final) ex-div date is 15th June. I mention this as I'm looking primarily for income in my pension (I hold L&G and Phoenix Group for this very reason).

I see the share price is not at a low point but heartened to read some belief in a possible takeover.

I'll make a decision early next week but would welcome any comments you guys think appropriate as I've not studied SMDS previously.
Thanks.

[muzmanoz] 03/5/2023 08:25

Was given a buy review in the times Tempus column today citing that it is less cyclical than its peers and expecting reduced paper costs/well hedged for energy costs.