Smith (ds) Share Discussion Threads

[yump] 25/4/2024 12:47

Wouldn’t be surprised if IP decided to buy Smds because of their (already known internally) lacklustre performance.

[alotto] 25/4/2024 12:23

Moorsie what's the reason for the drop in margins? Where did you find the trading update?

[moorsie2] 25/4/2024 11:07

The Memphis, Tennessee-based company said it had profit of 16 cents per share. Earnings, adjusted for non-recurring costs, were 17 cents per share.

The results fell short of Wall Street expectations. The average estimate of four analysts surveyed by Zacks Investment Research was for earnings of 23 cents per share.

The global paper and packaging company posted revenue of $4.62 billion in the period, exceeding Street forecasts. Four analysts surveyed by Zacks expected $4.45 billion.

[anhar] 25/4/2024 10:10

I'm out, don't want IP so will reinvest in other divi payers as income is my only reason for investing in equities.

[bareknee] 24/4/2024 23:12

If you want shares in the combined group there's probably something to be said for holding IP rather than DS at the moment.

The most likely outcome is that the takeover will go through, but if it doesn't then I'd guess the IP share price will rise while DS Smith will fall.

[alotto] 24/4/2024 20:13

Knocker you may get lucky! It won't be long before the major shareholders make a decision on whether to accept the offer from IP.

[1knocker] 24/4/2024 19:53

Its got to be a lot closer to 300 than 350 for it to be attractive to me to get bak in, but I shall continue to keep an eye on it. Who knows anything in this crazy market?

[alotto] 24/4/2024 16:45

Thanks Clinton

[clinton baptiste] 24/4/2024 16:33

Tomorrow pre-market

[alotto] 24/4/2024 16:00

Is IP releasing a trading statement today?

[anhar] 24/4/2024 15:29

... Anyone looking to cash out is probably kicking themselves for not selling in the market when SMDS went over £4...

Indeed, I'm in the self-kicking club and still holding, though have given up trying to kick myself, far too difficult. Was away for a few days during which MNDI pulled out. I continue to reject IP shares so will be selling in the market, no doubt at a much lower price than above now that SMDS price is controlled by the IP price, the random fluctuations of which have pushed them down.

I'm a long term income investor and doing nothing in a hurry, on balance, has been the most profitable stance over decades and a large number of corporate activity events. Not this time though.

[alotto] 23/4/2024 15:56

I originally bought for 300 and sold short of 400p. Bought back in at 350. Provided all cost savings and sinergies work out in a scenario of a merger, the share price for smds could even go back to the equivalent of 500p.

[jeffian] 23/4/2024 15:44

As stated previously, the 'value' of the merger was always going to be a moveable feast and only relevant at the time the deal was struck for the purpose of establishing what proportion of the combined entity would be held by each group of shareholders. Anyone looking to cash out is probably kicking themselves for not selling in the market when SMDS went over £4, but for those staying in, the proportion/dilution of their holding is not going to change as the ratio is fixed.

[laurence llewelyn binliner] 23/4/2024 15:35

IP down from USD41 to 34 since the SMDS bid, how much will they need to dilute existing shareholders in their all paper offer...?

[alotto] 23/4/2024 15:08

Tomorrow IP is releasing their financial statement for the period. I will see you all tomorrow afternoon then! It will be interesting.

[sharw] 23/4/2024 14:12

Yes, the price of SMDS will track IP for the next 8 months or however long.

Before anyone asks, the magic formula is:

IP x 0.1285 x ER

IP is the share price of IP in cents that you can find here

ER is the exchange rate from here:

So with IP 3420 at the moment (15.12) and ER 0.81 we get 358p (offer is 349)

[chopp1] 23/4/2024 10:20

Suddenly the deal with IP looks unattractive given how the IP share price has slumped. Can only hold and hope it improves.

[moorsie2] 22/4/2024 11:26

IP results out this Week (Thursday I think)

Should provide a real boost in Sp

Also PCA in USA are reporting

[pj fozzie] 21/4/2024 20:31

Hi sharw,

Unfortunately, I find the rns ambiguous. I understand that a secondary london listing is planned, but it's not clear to me where the 642 shares I'll end up with, will be listed. I assume NYSE but hope for LSE.

Cheers,
PJ

[sharw] 20/4/2024 09:19

pj fozzie - read the RNS - 7th para

[ygor705] 20/4/2024 08:12

Not surprised at yesterday's development and as the Times highlights this morning, Mondi has never been a big acquisition player. Most of us who follow the sector appreciate that it is a very large scale business undergoing very large scale consolidations these days. Having failed to reel in Smurfit Kappa a few years ago, IP won't want to lose an opportunity like this: there are just not enough big targets around any more. There is still a long way to go but personally I am more than happy to hold IP paper. My portfolio has been trending towards the US for a few years now and so getting an existing under-performing set of assets under US control is good news as far as I'm concerned. Mondi is the one sector player that I've never owned and I think that they may have made themselves a medium term target as a result of yesterday's decision.

[pj fozzie] 19/4/2024 21:30

When the deal closes, will we get IP shares listed in US or shares listed in London?

Anyone know?

Cheers,
PJ

[cruelladeville] 19/4/2024 19:41

Exactly, I took the decision to cut and run at 396p too. Very glad I did.

[alotto] 19/4/2024 19:08

Laurence, there is a plan for a London listing, so there should not be a 30% WHT.

[phillis] 19/4/2024 15:02

Have bought back