Smith (ds) Share Discussion Threads

[moorsie2] 07/3/2024 17:52

This is actually an excellently crafted deal.

The sectoral benefits of consolidation, the integration synergies and the cyclical pick up means both companies shareholders by the end of 2024 will be significantly better than the nominal values.

Also lots of runway for 2025 appreciation and reading for a transatlantic merger in 25/26

[alotto] 07/3/2024 17:51

It depends how many birds are in the bush, how far is the bush, how likely you will get the birds, what the interest rate is, etc.
Cit. Warren Buffet

[cruelladeville] 07/3/2024 17:38

On the basis of a bird in the hand etc.... Looking to sell tomorrow.

[alotto] 07/3/2024 17:27

Smith DS market cap today is about 42% of the market cap of Mondi + Smith combined. Smith is coming into the all share combination with a lower PE than Mondi (at least according to the PE stated on the Hargreaves and Lansdown website). If the valuation on the market is not changing, the Smith (DS) shareholders are actually seeing their shares trading at a higher premium, so exposed to more downside in unfavorable market conditions. Conversely Mondi is making itself cheaper, exposing themselves to upside. Mondi is not giving Smith (DS) a great deal. Bottom line, reject and carry on. Smith (DS) will eventually see its share price trading higher, 400p+.
The only positive is whether Smith DS can see its operations and market share improve thanks to the access to Mondi's assets and customer base.

[laurence llewelyn binliner] 07/3/2024 17:17

There we go, 373 pence and an extension up to 04.04.2023 to firm it up.. :o) (or not)..

[loss-leader] 07/3/2024 16:58

So the number is 373 LL

[moorsie2] 07/3/2024 15:03

It has actually stayed in a very narrow range from 8th Feb right upto pm on 7th March. I would read from that, nothing is leaking and some investors are just speculating bets

[ygor705] 07/3/2024 09:11

This situation is absolutely typical of the lousy management that shareholders have to put up with from their Executive. The mantra is "Don't tell your shareholders anything until you have to".

[moorsie2] 07/3/2024 08:40

5pm is the deadline. So most likely after close of trading day
Will be one of the following 3

Yes
No
Extension request

[cruelladeville] 07/3/2024 07:37

There doesn't need to be just yet.

[alotto] 07/3/2024 07:06

No RNs today?!

[elsa7878] 06/3/2024 16:41

The CEO just bought an £11 million house so he's done very nicely out of it.

I sold half today as made a few £. Think if it's off I would be surprised by under 290. Had been 280 and the sector is finally seeing some growth and pricing power on the basis of the conference call.

[moorsie2] 06/3/2024 15:53

Market is looking bearish to any positive deal news...

Some traders in the know?

[moorsie2] 06/3/2024 11:20

Thanks for clarifying the rules

[jeffian] 06/3/2024 10:25

#4424,
We may not find out tomorrow. If there's been no agreement at this stage there's every chance they'll ask the Takeover Panel for an extension. It would not be unusual.

[moorsie2] 06/3/2024 10:10

Fair point

But companies are run for shareholders and this executive and board have presided over a time where the company slipped up badly and underperformed.

Let's hope egos do not get in the way of Shareholder interests

[cruelladeville] 06/3/2024 10:09

SMDS is in play and has been since the last failed approach by Mondi. If it fails again, the company is on borrowed time as a standalone business. I am sure of it.

[peart] 06/3/2024 10:03

You might be right Moorsie2. My well run SMDS comment was based upon meeting a director of the business who I was very impressed with and she stated that the company was very well run and I believed her, with no doubt - 100%. The only caveat as to my comment is that this was some time ago, and things might have changed??

In any event, my general comment still stands regardless, as we have to assume that someone or some people on SMDS's board know what they're doing. This is not an unreasonable assumption for a ftse100 company.

[moorsie2] 06/3/2024 09:53

Well run SMDS!?!

Their management has been a disaster these last 5 years for Total Shareholder returns compared to its competitors.

It went from the highest rating company in its sector to the lowest.

Time the board said enough is enough.

Get a bloody deal done is my view

[peart] 06/3/2024 09:46

I suspect it's the usual game at the current time and perhaps this is obvious. UK share prices are generally depressed, Mondi sees an opportunity.... They think say £4-4.50, will entice SMDS to bite and the well run SMDS's Directors think no way. The only issue is if SMDS feel vulnerable as a business going forward, as in their future profitability. If not and they have confidence going forward then Mondi, who have tried before, really, really have to put a knock out bid on the table. Who knows, but we'll find out tomorrow at the latest.

[laurence llewelyn binliner] 06/3/2024 08:40

The clock is ticking for a revised offer.. ;o)

[moorsie2] 06/3/2024 08:38

They cannot mention anything until the process is at an end or the time period has run out.

That is tomorrow....

[alotto] 06/3/2024 08:22

Yeah why should they disclose negotiations before they are done with it?

[buyzantium] 06/3/2024 07:15

No mention of the takeover in the trading statement this morning.