Charles Jillings, CEO of Utilico, energized by strong economic momentum across Latin America. Watch the video here.
London South East prides itself on its community spirit, and in order to keep the chat section problem free, we ask all members to follow these simple rules. In these rules, we refer to ourselves as "we", "us", "our". The user of the website is referred to as "you" and "your".
By posting on our share chat boards you are agreeing to the following:
The IP address of all posts is recorded to aid in enforcing these conditions. As a user you agree to any information you have entered being stored in a database. You agree that we have the right to remove, edit, move or close any topic or board at any time should we see fit. You agree that we have the right to remove any post without notice. You agree that we have the right to suspend your account without notice.
Please note some users may not behave properly and may post content that is misleading, untrue or offensive.
It is not possible for us to fully monitor all content all of the time but where we have actually received notice of any content that is potentially misleading, untrue, offensive, unlawful, infringes third party rights or is potentially in breach of these terms and conditions, then we will review such content, decide whether to remove it from this website and act accordingly.
Premium Members are members that have a premium subscription with London South East. You can subscribe here.
London South East does not endorse such members, and posts should not be construed as advice and represent the opinions of the authors, not those of London South East Ltd, or its affiliates.
SKG is worth €30 a share today as it was yesterday. It just proves how mad this stock market crash is. Great companies will weather any storm and one the has exceptional free cash flow is about as safe a bet as there is. Collect the dividend and relax on this one anyway. Oh.. don't rule our a take over offer for Smurfit either and at a lot closer to €40 than €20.
Fy Profit before Income Tax - +58%. Impressive.
the irish market has held out from the global rout for a very long time , were it to roll over , the drops would be huge as its a very small illiquid market which is dominated by american money , smurfit could easily halve from here if earnings are not bright , the purchase in brazil will weigh on SP , anything brazil related is toxic right now , stock is not expensive overall but its anything but a recession proof sector
I'd like to know the same thing. Market turmoil combined with a nervousness around the state of the America paper and packaging market?
constant selling
results tomorrow. Good from Mondi today so more good news expected from skg in the morning.
Davy. There was good news all around for the European paper sector yesterday (July 16th). Containerboard demand continues to grow strongly while the recently announced price increases in recycled containerboard appear to have been successfully implemented. Further increases are likely as US market conditions improve and the US dollar/euro rate remains strong. All these factors bode well for earnings momentum in the European packaging sector. This positive sentiment is likely to be reflected in the forthcoming results statements from Smurfit Kappa Group on July 29th and Mondi on August 6th.
"A structural re-rating" - Anyone want to translate that?
Smurfit Kappa Group’s focus on innovation and differentiation is not just an additional cost of doing business. Rather, it is a strategy to help the company to gain market share and customer loyalty and at the same time increase both revenue (price achieved for corrugated) and margins. While this may not impact returns in the short term, this strategy clearly underpins the company’s recently revised long-term return target of 15% – unheard of in this industry in an historic context. SKG’s plan to transform its business in this way is not reflected in the current valuation, even after the recent rally in the share price. A structural re-rating is merited and we are very confident in retaining our ‘Outperform’ rating.
"Bid spec was dismissed" If there is something going on they are playing their cards exceptionally close. Markets are not even sure or we would have crossed 30 by now. If there is any sudden spikes next week we can assume news is on the way.
Equities: SKGFeedback from Investor Day, flat German prices While there was no big bang at SKG’s investor day, the event clearly illustrated how far SKG has come from the troublesome years of 20092010, how the Group is increasingly driven by a customerled approach and how M&A is once again at the top of SKG’s agenda. Bid spec was dismissed. Separately, pricing data released yesterday suggests there is as yet no momentum behind the planned €40€60/tonne price increase for April. After several years where the focus was on cost cutting and debt paydown SKG's focus is now on investing (capex and acquisitions) and driving top line growth. The Group is looking to take a more proactive customer approach and has launched the "Open the Future" brand initiative which sets out how SKG is different from its competitors by providing tangible evidence based benefits for its customers based on its deep insight and technology. SKG expec ts this initiative to drive additional top line growth (from 2016 onwards) but no specific targets were provided. We believe this strategy should see SKG gain market share in Europe, mainly at the expense of smaller players. In terms of its own M&A strate gy management reiterated its stance that it has a clear desire to carry out deals which will expand its presence in Emerging Markets or reinforce is position in attractive European markets (ruling out France). It would not rule out a large deal if such a d eal was a rational and logical deal to do, while maintaining a credit rating of Ba1/BB+ is key to the company.
The latest from Smurfit Kappa Re its Capital Markets day. "The event will focus on Smurfit Kappa’s differentiation initiative with examples of its practical application and the tangible benefits expected. No material new information will be disclosed during these events and the Group will not be commenting on current trading". I think this statement could be translated into two short words which I am sure are not allowed on this forum. But is something happening..........
Skg denies rumours in Monday's irish times. Not sure it will make any difference though.
http://www.independent.ie/business/irish/us-paper-giant-eyes-bid-for-81bn-dublinlisted-smurfit-kappa-31136169.html going to be an interesting day tomorrow
Take over rumours for price of €36.00..
Qe is going to leave shares, especially good dividend paying ones, difficult to predict this year. In a normal year we could see a drift back below 25.. This year will be different but might be worth your while keeping tabs on it for a dip back in on any sudden dips. Anything close to 20 would be well worth a few pound.
......And a tip of the hat to you sir. Its been dumped heavily this morning. I'm actually a little embarrassed that i missed the ex-dividend date. I just didn't own enough to care about the dividend.....but to have missed the short trade was unfortunate....
Going ex dividend today. That might explain some of the buying. We could easily fall back a bit from here after today.
Very true. I bought into this on the back of the management, but also the fact that the brokers were basically screaming about how undervalued it was. I was very happy when it finally re-rated. Its is a very volatile share though, and i can see how day-traders might like it, which may well push the price around a bit. Even with positive european PMI's, price hikes and QE, I found a jump like that surprising. Results season starting in the US today; sentiment could change very quickly. Glanbia is, like SKG, a very very solid company. Companies like these got taken out with all the other thrash in the financial crisis, but were the diamonds in the rough....if you were lucky enough to have anything left.
I think at 30 we may well be in over done territory but markets can defy logic by times. This was way undervalued last year to the point of frustration but thankfully when the tide turned it turned big time. The only news yesterday was that the European pmi was well up and orders are pouring in. All these orders need packaging. Its possible future growth is been priced in. Are you familiar with Glanbia on the Dublin exchange. I bought them at €2.50 the same day I bought SKG at €7.40 in 2009. I sold glanbia a €8 because I thought that it. With a pe heading for 20 they were in over bought territory. Today the are over €17.70 with a pe of 30 and still going. It was a good lesson. Even at over 300% profit in SKG I'm hanging in here. I will review this time next year as eu qe is at the mid point. QE is going to distorted the market with unpredictable results.
I accept everything you are saying, and maybe as a man who thought we were all done at circa €25, perhaps this will sound like sour grapes. But its up another 3.5% in 9 minutes of trading this morning. SKG is a great company, but are people now just buying anything to get an exposure to QE? Or is there something we don't know (like watching BG's share price yesterday afternoon)?
Packaging companies across Europe have been announcing product price increases. Making them stick will be the test. Its possible that skg or one of its peers have been successful this month and all will benefit. The weak euro has halted US competition in Europe and more price increases in the region of €40 to €60 a tonne is on the cards. To a cash generating company like skg this is going to improve their bottom line nicely.
Does anyone know what is happening here? This has gone crazy this morning......
I think we have caught up with fair value now. However, the trend and momentum is still strong so maybe a bit more wouldn't be a surprise.
Just to mark the day. probably bounce around here for a while. long term target is now €28.