Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
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That really would be worst case.
However there is perhaps another potential cause for concern, this potential litigation may not
be confined in the US market.
Attempting to quantify potential liability is pure guesswork at this stage. No one knows is the honest answer.
M84,
The key to the Bloomberg article to me is:
'As analysts at Jefferies point out, the market is worried about any spillover to Reckitt's U.S. infant formula business – its $18 billion acquisition of Mead Johnson in 2017 – and the risk that it could lose contracts as a consequence.'
Trump is going 'bigly' against all sorts of targets and focusing on a foreign company fits his current political aims - MAGA at the expense of foreigners and his perception that the EU is a strategic competitor.
Being risk averse with so-called blue-chips, I will be selling in the morning - with such a low spread it just costs dealing fees to buy back in again if my opinion changes. As the phrase goes, 'A Bird in the Hand is Worth Two in the Bush'.
The article shared suggests that the provisions relate to a separate possible write off, that is to say and split fine would be in addition.
Its concerning, but to put in to perspective this is still at a level higher than February, or last Autumn.
Ex divi soon, lets see if this holds up then.
Definitely one to keep a close eye on.
Oh, now I get it.
RB already provisioned 400M and today’s drop wiped 3BN from MCAP. So you could say it has already been priced in, so the worst case scenario is out of the way, and mid case scenario would be sharing the 3BN fine (theoretical but it always is exaggerated) between the two companies. The best case scenario would be that RB get’s a fine of 400M, which would be a non event.
RB’s CEO is leaving, so they can easily expedite this now and start with a clean slate of PR.
As usual, the sell off is always overdone.
Dump blue-chips but am going to have to make a decision - the Bloomberg article below is quite interesting:
https://www.bloomberg.com/opinion/articles/2019-04-10/reckitt-benckiser-didn-t-ditch-indivior-fast-enough-for-the-doj
I think it will be OK
Indivior were demerged from RB
How are they connected?
Yes
Alarming drop today- is this Indivior connected?
Changes in the value of the pound probably, and today its gone the other way lol.
Welcome as it is, what is causing this upward movement?
I thought RB made household stuff that everyone needs and buys all the time ie low-tech, very disappointing slide since I bought at 68 in 2017- wondering whether to buy more to log loss and create possibility of medium term profit, or just sell and go away, perhaps buy Unilever....are fundamentals still good?
CEO messed up big time: he is no longer hungry, sharp and driven like he once was. Latest M&A a big mistake....caused him also to miss the Pfizer Consumer HC deal. Plus he hasn’t been decisive enough in refocusing his business towards the higher margin business. Yes he split the business in two but he didn’t sell of HH. Big mistakes. Far too happy being the CEO rockstar; but lost his focus and appetite for success
Exceptionally poor performance here, dropped below the support found in April 18. No wonder there has been a downgrade.
Yes, excellent!
Fantastic set of results.That's how its done.
Up over 3% now, but no RNS
dead cat bounce. This share will need 2 consecutive quarterly results in which it beats market expectations, before the sp goes north IMO
This share is so awesome!!! It pulled back it’s loss from earlier this morning. Just a little more to go he he
dissappointing. Expect SP to slide down rapidly now
*latter is a different...
It is a very good share, and I also have been in and out. Last time I sold at �80.00 and believe we have not yet seen the bottom, though the fist overhang to the sp (Pfizer) has gone with a nice jump in the sp as we have all seen. Still, the new structure (splitting the company effectively in 2 units) and more importantly the acquisition of Mead Johnson, still needs to deliver. The former is a no brainer, and long overdue. The former is a different matter all together: to succeed in this new category requires a whole different sets of competencies that RB today simply does not have. Retention of key members of the MJ staff may be an answer but only of the company is willing to learn and adapt significantly. And that is a big if: with each acquisition RB has done, staff of the acquired company did not stay due to huge cultural differences between old and new company. So, whilst buying like stockplay suggest could be a very intelligent move (kind of wondering if I should not have done that too), but I am going to wait it out and wait until we have good evidence that the MJ acquisition is delivering growth of the new acquired brands. So, I will be looking for 2-3 consecutive quarters of market beating expectations. If Q1 is not good enough, expect a rapid decline to pre-Pfizer (or lower) levels. All IMHO - DYOR
I have been many times in and out of this share successfully. Last time I sold at around 65. This time however most investors were taken by surprise. I was also expecting them to acquire the Pfizer assets and then the price to drop substantially and load some shares at around 49. Thankfully I decided to buy a good tranche 'prematurely' at 56 the other day, as I thought the price had dropped way too far when it touched the 55s and the Pfizer acquisition was starting to be priced in. The plan was still to wait and buy more during further drops. After todays news though, I cannot see further drops coming soon and that seems to be a short term 'bottom'. Of course as bluefin says that can prove wrong and also markets are in a 'weird' mood nowadays... I am happy with the shares I have here, will keep them to get the dividend (ex divi 12/04 for 97.7p.) and then we will see what happens after the ex-divi. GLA