Smith (ds) Share Discussion Threads

[alotto] 20/5/2024 19:50

DSSmith51 by your name I can tell you really are into this stock.

[dssmith51] 20/5/2024 19:03

In the event IP received a bid, how will it affect DS Smith share price? It clearly would complicate matters. I know it’s rumours and nothing may come of it.

[alotto] 20/5/2024 17:49

IP keeps rising. It's matter of time before SMDS retraces to 415p (maybe more considering today's share price)

[moorsie2] 17/5/2024 07:14

There will be some speculation in IPs price re a potential offer.

Also there will be an element of value investors seeing it is a good time to get in due to its cyclicality and highlighted by the speculative potential approach

SMDS will be well over 4 pounds in Q3

[nightspot] 17/5/2024 00:47

The clouds from Brazil haven't blown away....yet!

[pj fozzie] 16/5/2024 23:17

Well based on the closing price of IP, SMDS shares should be £4.11

With current price of SMDS at £3.694, that discount has grown to 41.4p so a potential 11.2% gain if you buy SMDS now and the gap closes.

That's gotta stir some interest no?

Cheers,
PJ

[alotto] 16/5/2024 20:50

The market doesn't make sense sometimes (most times it is right though).Thats why some people get rich and some go broke.

[dssmith51] 16/5/2024 19:54

Can anyone explain to me why DS Smith has not shared have not risen in line with International Paper which is close the highest they’ve been in the past 6 months

[moorsie2] 16/5/2024 17:00

IP powering on

[alotto] 16/5/2024 06:20

Thanks jeff

[jeffian] 15/5/2024 16:28

Indeed. It's 'conditional' at the moment but when the conditions are satisfied, it will be put to shareholders (it's a recommended bid so likely to go through) after which they will apply to the Courts to sanction the share swap. You will be told the more precise timescale when/if the conditions are all satisfied and the bid goes 'unconditional'.

[alotto] 15/5/2024 16:04

A decision has to be made before the combination becomes effective though

[jeffian] 15/5/2024 15:30

"The Combination is expected to become Effective in the fourth quarter of 2024,..."

[alotto] 15/5/2024 14:58

International Paper is back to where it was at the time it made an offer to SMDS. Does anyone know if/when the deal will be confirmed?

[moorsie2] 15/5/2024 14:11

Naturalement :)

[aimloser1] 15/5/2024 13:17

Unless the deal falls through bien sur

[moorsie2] 15/5/2024 08:50

Presently sitting at a 7.5% discount to nominal IP value.. Enough to be of interest to Hedge Funds and serious big traders..

This gap can only close in the coming weeks

[yump] 13/5/2024 20:00

Doesn’t the bid for IP at least show some evidence that IP is undervalued.

Also after the takeover of smds, in theory we would benefit from synergy savings or sell offs of less well performing assets, as well as the likely upturn in their markets.

[alotto] 10/5/2024 06:54

You won't get any more shares in IP regardless of what you pay, that's true.
However IP and SMDS share price should reflect a common valuation of the merged entity. If you want a stake in the merged company you should buy SMDS rather than IP. That's because SMDS is cheaper. The merger will eventually "equalise" the valuations. Where that valuation will sit is yet to be seen. Either SMDS is undervalued and IP fairly priced or vice versa. It may well be both companies could be overvalued, or both undervalued! But at the moment there is a upward force on SMDS and a downward force on IP, simply based on valuation, assuming the merger will go ahead. Of course that ignores the potential of a no deal in the event IP receives and accepts a cash offer. That is why IP has a higher valuation.

[jeffian] 09/5/2024 22:36

It doesn't matter what you pay for SMDS, you won't get any more or less shares in IP, so why bid it up? There must be a raft of sellers who want cash rather than IP paper and there's not much of a case for buyers joining the party at this stage. I guess most of us are already holders of SMDS rather than new buyers attracted by the supposed mark-up.

[alotto] 09/5/2024 18:51

Jeff the market won't pay 400p for SMDS but it pays almost $40 for IP with the prospect of a merger. So why not to pay 400p for SMDS? In my view the only reason is the concern the merger may not materialize

[jeffian] 09/5/2024 16:16

Because, as said before, it's a notional figure that varies minute by minute with market fluctuations. The percentage split between the two companies is fixed; it doesn't matter what the nominal share price is. Whatever happens, you're not going to get any cash (unless you sell in the market). In view of that, would you pay 406p to buy in the market today? No, nor would I, hence the current price.

[chopp1] 09/5/2024 16:07

Yes, by my calculations given the IP share price and current ER the DS Smith share price should be £4.06. So very odd to be holding around £3.60, at more than 10% discount. Don’t follow it.

[alotto] 09/5/2024 08:46

International Paper is over $39 per share which means £3.90 per share for SMSD. Are investors concerned the deal may not go ahead, hence the discount? When will the SMDS shareholders vote on the proposed acquisition?

[betman] 08/5/2024 16:48

I find it hard to believe that the Brazilians will win at the current offer. For me the most likely scenario is that IP can continue with their current offer. IP current share price inflated by bid but it has created a gap with SMDS price