nk1999
03 Apr 2017
Berenberg From ADVFN:"Analysts at Berenberg said shares in RPC Group were arguably cheap, giving short shrift to criticism of the company's adjustments to its operating profits, or that it was overpaying for assets, amongst other issues.RPC Group was a 'roll-up' story, it had always been so and it continued to be so, the broker said, with the packaging business buying rivals and extracting synergies from them.Adjustments to its earnings before interest and taxes were not "particularly large or unusual" relative to the size of the acquisitions carried out.Critics of the Northamptonshire-based company were also failing to take duly into account the positives from its aqcuisitions, including the generation of synergies, Berenberg said.With the price for past acquisitions running at about seven times EBITDA, falling to five times' once all costs and synergies were considered, the company was not destroying value "en masse".Furthermore, at present its shares were trading on EBITDA and EBIT multiples aking to those of DS Smith, implying that the premium for further M&A had been taken out as investors' confidence wavered."If RPC makes more acquisitions and creates more synergies, then arguably this is cheap. We do think, however, that management could increase the focus on quality of acquisition rather than quantity," Berenberg said."
Moonsurfer
03 Apr 2017
Re: in for less but into win meantime strange trading patterns continue.Today, 6,4,4,9,3,5,4,7.Don't wish to appear paranoid but something smells a bit.Moon
Clued-in
01 Apr 2017
Re: in for less but into win Maybe not enough are stupidly selling their shares. Not all the brokerages - all positive about RPC - are likely to be wrong. I can see RPC at least double their 783p by 2020 when synergies have seriously grown the bottom line Net Profit (not EBITDA).
Clued-in
01 Apr 2017
Re: Price Fall Re Citywire; It all depends on how well one ' spins the plates'. RPC are incorporating their new acquisitions very well and the more they have the greater the economies of scale. Citywide criticism a bit like criticising a top exec for having a lot of responsibility, but within his/her capability, versus the capacity of the average guy. Merging new acquis is easy if done correctly and the new entity is understood.
sharegardener
31 Mar 2017
Re: RPC GROUP, STRONG UPDATE Reading RPC's development history on P89-91 of the Letica prospectus which summarises the M&A trail, I get the impression that their '2020 Vision' strategy is well thought out and they are doing something like Bunzl or DSSmith where the expanded group grows cashflow.However they list a lot of acquisition, integration & restructuring costs as well as impairments on property & plant which can muddy the accounts. We will only see the true value of the acquisitions when the WACC and ROCE are known - when we get to 2020!Deutsche comment below (they were joint bookrunners for the Letica and Promens rights issues & BPI placing + 3.45M rump shares sold on at 905).''FY-16-17E revenues are expected by RPC to be significantly ahead yoy based on contribution from acquisitions and continued underlying organic growth (+3% reported in H1 which we think has been sustained). Mgmt sees overall performance encouraging, with adj. op. profit in fact ahead of expectations.The recent GCS (completed Mar-16) and BPI (completed Aug-16) have been integrated well and are performing ahead of expectations, acc. to RPC. ESE (completed Jan 31) is expected to make a FY-16/17E contribution and early purchasing synergies have been realized. Letica (completed 10 March) has realized CY-16 EBITDA of USD67m as already reported in its trading update published along with closing (up from USD57m reported for LTM in H1), implying a 7.3x 2016 EV/EBITDA multiple (and thus much below the 8.5x initial headline, as mentioned). Astrapak is expected to be completed in June. RPC is stressing that the targets’ mgmt teams are being retained in most cases.We think mgmt statements of being ahead of expectations imply that FY results could come in slightly ahead of DBe of GBP291m and Reuters est’s of GBP289m for adj. op. profit. We believe this is owed to earlier than expected closing of deals and swifter synergy realization and a strong outcome in light of continued mild polymer headwinds in H2. On organic growth, we feel 3% H1 run-rates should have been largely sustained in H2. Given slightly better FY-16/17 performance, on track deal integration and a strong trading update for Letica, we feel fine with our unchanged estimates for FY-17/18E, reflecting a roughly GBP100m adj. op. profit uplift. On the back of this, RPC trades on 8.6x 18/19E EV/EBITDA (incl. pensions), below 9.5x for plastic packaging peers.''SG
Hugh Betcher
31 Mar 2017
in for less but into win If of any interest I decided to have a nibble following recent falls but could not get an online quote for £20k. When I reduced this to £15k it went through. For a company with a market value over £3bn I was surprised by the seem illiquidity.Anyway, expect a wipe out next week based on my talent for share selection!
oggs
31 Mar 2017
Bought more Just don't believe that a management with this much credibility have done something that justifies this fall
Moonsurfer
31 Mar 2017
Price Fall On Citywire Money, H/L warn that after recent acquisitions RPC may be "spinning too many plates". It says the fall suggests that investors agree with them.Such an in depth analysis obviously carries much weight !LOLMoon
play3r
31 Mar 2017
Re: Lifting... Broker forecasts -[link] lifting... will have guns like Arnie by the end of the day!Happy Friday all..!
72_fastback
31 Mar 2017
Re: RPC GROUP, STRONG UPDATE Deutsche Bank reiterate their 'Buy' rating and 1140p price target today.I hold these in my ISA and if the price stays like this I shall buy more with next week's new ISA allowance.Sentiment is certainly against RPC at the moment, but that doesn't make it a bad company.
MarkNThompson
31 Mar 2017
"Panic on the Streets of London" as Morrissey would say - shareholders seem to have been really spooked by the words of Paul Moran, the same guy who nearly a year ago issued a very downbeat statement regarding Burberry whose share price has since risen by 50%. Personally, I think this represents a great buy opportunity and picked up another 1,500 stares last night at just over £8.00. Does Paul really think that making acquisitions is bad news (he seems to be saying so) and that RPC should simply return cash to shareholders which they can then reinvest in what?
play3r
31 Mar 2017
Lifting... We've broken the big support of 779... next i have is 758 then another big one at 737..Starting to lift this as IMO the downtrend is oversold and therfore bound to retrace...Manipulated as you all say no doubt...Hold tight callers... In the words of Yazz.. "the only way is up!"Good luck people
Grill Bimsie
31 Mar 2017
On the Slide Again Down to 797 at opening this morning. Really can't see any logic behind the fall.
Clued-in
31 Mar 2017
Re: RPC GROUP, STRONG UPDATE These money worshippers care if they are locked up with rapists and killers !!
Heorot
30 Mar 2017
Re: Share price is a shambles Dutchman. Thanks for the heads up on your worry. As I said in my last post, I put a 10p trailing stop loss on 2 thirds of my holding as a result. Today they dropped through the stop loss and sold at 8.825 giving me a small profit on my total outlay and one third of my original holding that is now zero cost to me. Given that they finished at 8.11, I am well pleased.
