sharegardener
02 May 2018
Re: Positive trading update I wonder if longer term SMDS will expand further into the US market as it looks like they are achieving good progress with Interstate by applying their European tech to US packaging. Also, they previously mentioned that it is cheaper to produce and supply paper & cardboard from the US to their southern European factories than to bring down from northern europe. Economies of scale and maybe some currency advantages at present.Perhaps building bigger operations in the US will fend off any takeover bid (SKG & international paper still ongoing) so SMDS may add more US acquisitions.There will also be some benefits from the 'anti-plastic' lobby which means more recycled cardboard - to SMDS's advantage.I have been wary of buying more shares here but in retrospect the recent dip to 460 would have been a good opportunity.SG
Boring Bernie
01 May 2018
Re: Positive trading update Yea, the trading update looked fine, with no massive surprises either way, so we're still looking like a pretty solid hold at this sort of level ( 527p tonight ).
red fox
01 May 2018
Positive trading update From Hargreaves Lansdown(Sharecast News) -DS Smith issued a pre-close trading update on Monday for its financial year just ended on 30 April, reporting that its business continued to perform in line with its own expectations, with the industry and business trends consistent with its trading update in March.The FTSE 100 company said volume growth remained "strong", with its focus on sustainable solutions and the accelerating e-commerce sector. That, and continued growth in multinational customers, had resulted in further gains in the company's market share.Recovery of increased paper prices, which had risen throughout the year, also continued as expected and the firm said its expected return on sales was to be in line with the prior year.Volume growth in the US was described as "excellent", and the board said it was "very pleased" with the positive reaction from local and global customers.The integration of Interstate was also progressing well, and DS Smith said it now expected synergies to reach an annualised rate of $35m by the end of the third full year of ownership - a further increase of $5m on its previous expectations - which the board said would be driven primarily by further anticipated global supply chain benefits.DS Smith's acquisition of Ecopack and Ecopaper completed on 6 March, further building its European network, with the board said to be "pleased" with the initial progress made."We are very pleased with the performance in the year, in particular in the step-up in volumes that we have delivered, and in the successful integration, customer reaction and volume growth within Interstate," said group chief executive Miles Roberts."Our success is underpinned by our commitment to sustainable packaging that is innovative and adds value to our customers, throughout their global supply chains and also by a focus on our own global supply chain efficiency. This approach, together with momentum in our business and opportunities to further strengthen our customer offering, gives us confidence in the future."
Boring Bernie
07 Mar 2018
Re: update It was a decent update, and a tad better than I'd expected, but I'm not sure I'd go so far as to call it "very strong" !If the year's return on sales is the same as last year, then it'll be 9.3%, so with expected ( by brokers ) revenue growth of ~19%, then that should mean expected growth in profits and eps of much the same.So, I reckon, we'd be sitting on a forward eps of something in the order of 37 to 38p. current sp of ~510p gives of 13 to 14 times earnings. If we were to continue growing at 18 to 19%, then that'd make us cheap, but I think growth will slow down in the next fin year, so we're probably on the lower side of fair value at the moment.BB Mind you, I wish I'd added to my holding at 460p the other week when I had the chanc
tejo
07 Mar 2018
update Well, we now know why the sp has been rising in recent days, clearly due to insider knowledge of the very strong update released to-day. SP should be secure at this level and, it seems, all is going well.
Sporting Chances
06 Mar 2018
Re: momentum returns Just hope they don't sell out. Ever share I've ever owned when the directors decide to sell the share-holds always lose out in the long run, the Management walk away with millions in the bank and often a cushie job with the new company.
sharegardener
06 Mar 2018
Re: momentum returns Potential takeover bid for Smurfit Kappa (SKG) rejected today and their SP up 18% but M&A possibility in the sector may be driving SMDS SP up - Mondi also up 5% todaySG
stockpiler112
06 Mar 2018
Re: momentum returns 7% in two days - I smell somethings up!! and in a good way.....
tejo
06 Mar 2018
momentum returns SP rising steadily and it looks as if positive momentum has returned. Not sure why but happy that all seems well.
Boring Bernie
24 Feb 2018
Re: No idea to be honest, but a sp of ~480p isn't far from being a level I'd be interested in topping up at. If I'd been a bit smarter I'd have reduced when it got above 550p, but I was plainly feeling a bit greedy at the tim
Spieler
23 Feb 2018
big fluctuations in SP lately, any ideas why?
Boring Bernie
25 Nov 2017
FTSE100 Promotion Barring a pretty large drop in the sp early next week from Friday's close of ~540p, it looks like we'll get the nod for promotion on Wednesday, with the actual promotion taking place in mid-December.Still holding here, but it's getting perilously close to the point where I might sell a % with a view to finding a mid-cap capable of delivering 20%+ annualised returns, which DH Smith has done very nicely over the last six or seven years or however long it's been now. As companies grow, continuing to grow at that rate becomes harder, hence the feeling that it may soon be the time to start taking profits.
Boring Bernie
13 Sep 2017
Last Weeks AGM Trading Statement Miles Roberts sounded more upbeat than normal last week, so, based mainly on waving a wet finger in the air, I've pushed my "fair value" range up a bit to 460 to 550p
Boring Bernie
29 Jun 2017
Re: Finals and Acquisition Today's rise was a pleasant surprise and it was good to see the placing getting taken up above yesterday's sp.I think I've been holding ( and adding ) here for at least five years now ( possibly more ) and the management have barely put a foot wrong, but I am a little nervous about moving into the US market so will take a closer look at Interstate over the next week or so.I now have fair value at somewhere between 420 and 520p, so would probably take some profits if it got to 525p or so, but if the company keeps progressing as it has, then the likelihood is that "fair value" will grow by between 8 and 15% per annum, so it's quite possible I'll still be thinking about taking profits three or four years down the line.
sharegardener
29 Jun 2017
Finals and Acquisition Full year results look good but a lot of info to digest! Most things including div are up by more than indicated in the 'performing in line with expectations' Q3 IMS in March and the pre-close update from April. They are also buying Interstate a US cardboard packaging Co. - which is a new market region. Funding via the placing also announced (6.6M shares @455) and more debt.The European earnings translate into more GBpounds but buying a US Co. in Dollars will be expensive.Overall there are some parallels with Bunzl and perhaps more so with RPC. The 'market' seems to like the whole picture given the large jump in SP today. Perhaps we should watch out for an activist like Northern Trust putting the boot in on the accounts as they did with RPC. (after recent acquisition of Letica - also a family owned US Co) SMDS have perhaps got a more selective and spread out acquisition record.I am continuing to hold here for the longer term. The only question is when is a good time to buy more.The transcript of the results presentation session isnt up on the website yet but the slides are there. SG
