Hugh Betcher
08 Jun 2017
Re: RPC volatility "I banked a small profit @ 861p yesterday"You sure about that? The shares were no where near that level yesterday. I wish!
bamboozled
07 Jun 2017
Re: RPC volatility Wouldn't be surprised to see some broker downgrading them lol!I see a director has purchased a few and a director's wife(?) has just purchased slightly less than 13000 today.My ol' computer played up at the time I was trying to buy at 760 but got some more a bit higher.Think there will be plenty volatility over the next while but happy to buy for longer term.
Bobtheretiredbroker
07 Jun 2017
RPC volatility Just read a pretty upbeat note from Hargreaves. They say that these results answer a lot of the questions previously asked about acquisition policy masking sluggish earnings performance.The volatility is alarming, though. Maybe the dealers haven't got enough to do on the day before the election!I banked a small profit @ 861p yesterday, and have just bought them back @ 778.5p.I can't see them getting a bad press tomorrow.
oggs
07 Jun 2017
Quite simply What the ****?
jake_walker
07 Jun 2017
Re: RPC group In share your frustration but I am sure once all the numbers are sifted through and price targets re-set we will see a positive re-rating here.
johnogroats
07 Jun 2017
RPC group One wonders what they have to do to impress the market makers. Double profit and a large increase i dividend.. Sometimes I despair.
bamboozled
07 Jun 2017
Re: Results & Presentation "not sure why the sp mark down after the good run "
rofit taking I would imagine although if you look at the high and low so far today,its crazy. Not many PIs would have set a sell @ 890 ,followed by a buy back @ 782,though, I wish I had done.just that-shows to maybe set limits at silly prices to see if market bites.
The Dutchman
07 Jun 2017
Results & Presentation Results today. Encouraging I thought, not sure why the sp mark down after the good run this week.The presentation on the website is MUCH more illuminating. Here;[link] is a a GREAT deal in this presentation about the acquisitions, justifying the strategy and each one individually etc etc. Clearly in response to the criticism in recent months regarding the acquisitions destroying value.I'm encouraged - I wont be selling any more of my holdings yet. The very substantial increase in divi is welcome ( a bribe !!)DYOR
Heorot
12 Apr 2017
Re: Price Fall I have all my holdings in a self select Isa with the Share Centre. They report that there are 9 brokers with a view of RPC and all 9 recommend a strong buy.
Heorot
12 Apr 2017
Re: Price Fall I'm a hold too. I bought in in Sept 2014 @ 5.65 and Jan 2015 @ 3.20. I also took all the rights issues since and achieved an average price of 5.67. When the price recently dropped, I sold some @ 8.83 and thus recovered all my previous outlay plus a small profit. I bought in again 4 days later @ 8.07 and put in a buy order for more if the price drops to 7.80. My current average price is now 4.59 (2.60 including past dividends). I can only see an upside and intend to hold.
r21442
12 Apr 2017
Re: Price Fall Think the argument of the bulls and the company is that there exists that ready supply of new plates and that they have been choosing the most appropriate ones from that huge supply? There's also the argument that by adding so many new plates you get very proficient and efficient at the spinning.Who knows! I can see the other side too. Plenty potential banana skins. Absolutely no idea where this will head next!
Nutkin2010
11 Apr 2017
Re: Price Fall The spinning plates analogy is spot on. To grow in a mature and low margin market it takes ever more plates to be found and got spinning to maintain profitability. As the original plates lose momentum and fall the freshly acquired ones maintain the momentum of the total. RPC s fear must be that eventually it will run out of new plates to add to the system dynamic.
Mome Wrath
08 Apr 2017
Wherein lies the base? Taking a look at the 5 year graph and unsure where to set a base line for a Fibonacci retracement. Using 350 in May 13 as a base gives a .382 retracement for the current fall (with a .618 at circa 640)Raising the basline to 500 Jan 15 gives 725 as the .618 with the current price (circa 800) representing a 50% fall, implying the retracement may not yet be complete..Setting a higher baseline of 625 in October 15 confirms a .618 retracement to around 800, more or less todays price, implying the retrace may be completeSo the question is, shall we see a recovery now or a visit to 725? Maybe the answer lies within the Elliot wave.
r21442
07 Apr 2017
Re: From Investors Chronicle Full text for those not subscribed...The share price of RPC Group (RPC) remains under the cosh a fortnight after Northern Trust Capital Markets cast doubt on the plastic packager's underlying performance. In a note to clients, the investment house ventured that a spate of recent acquisitions - 10 deals in a little over 12 months - had served to mask disappointing capital returns and free cash flows. The analysis questioned why the tailwind derived from falling input (polymer) prices wasn't more apparent in the group's year-end figures to March 2016. Northern also believes that the accumulated synergies from the M&A schedule haven't delivered the gains that one might expect.The note, which was widely reported in the financial press, sent the shares down 4.8 per cent on the day of release. However, the group's market valuation had been in retreat since the high water mark of 1,007p in the first week of January. This is despite a pre-close update on 30 March announcing revenue for the year ending March 2017 would be ahead of expectations, as well as "good cash flow development".Admittedly, RPC announced a discounted one-for-four rights issue in the intervening period to fund the acquisition of US plastics manufacturer Letica for a maximum consideration of $640m (£512m). Regardless of this dilutive effect, the shares remain under pressure.Although institutional shareholders have yet to rebel in the face of RPC's accounting conventions, the group's treatment of performance metrics came under fire by Northern Trust. The charge runs that a step up in M&A activity has destroyed shareholder value, but has been obscured by what Northern considers contentious interpretations of capital/asset returns. If true, investors would be entitled to question if accounting treatment had effectively skewed valuations of target companies, or whether it had distorted performance metrics subsequent to the integration of acquired assets.The group's treatment of performance metrics came under fire by Northern Trust. The charge runs that a step up in M&A activity has destroyed shareholder value”The explicit criticism centres on RPC buying lower-margin businesses - a misallocation of capital, according to the analysis. The note highlights the possibility that management incentives rewarding acquisitions have encouraged value-destructive deals, particularly if hurdle rates linked to bonuses don't adequately reflect the impact of acquisitions on returns. But a spokesman for RPC counters that "only a fraction" of the 300 or so opportunities the board has considered since the launch of the group's Vision 2020 strategy have been completed. RPC also points out that its return on capital employed (ROCE) has consistently outstripped its weighted average cost of capital (WACC). However, Northern questions why the packager has disregarded hefty exceptional costs when calculating the former measure.Northern's interpretation of the investment case is somewhat at odds with the general view of 'sellside' analysts. As we went to press, nine analysts had allocated the stock a buy rating, with a consensus price target of 1,166p - a 46 per cent premium to the current share price.Investors know that intrinsic value is an elusive concept. We're reluctant to offer a definitive call on the packager's underlying value due to the sheer weight of intangible assets on its books - but that's simply the nature of the beast at the moment. Nobody is questioning the strategic rationale behind RPC's recent buying spree; the European packaging sector remains fragmented and inefficient. If you take this view, then you might accept that the group is in a transitional phase. The full benefits of upscaling or repositioning within the marketplace may take time to accrue.IC VIEW:For now, investors may have to content themselves with a compound average growth rate of 22 per cent for the top line over the past six years. Of course, any fool with a cheque book can i
nk1999
07 Apr 2017
From Investors Chronicle "The share price of RPC Group (RPC) remains under the cosh a fortnight after Northern Trust Capital Markets cast doubt on the plastic packager's underlying performance. In a note to clients, the investment house ventured that a spate of recent acquisitions - 10 deals in a little over 12 months - had served to mask disappointing capital returns and free cash flows. The analysis questioned why the tailwind derived from falling input (polymer) prices wasn't more apparent in the group's year-end figures to March 2016. Northern also believes that the accumulated synergies from the M&A schedule haven't delivered the gains that one might expect......."[link]
