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Very good results. Positive in every respect. Dreadful share price reaction thus far. I don't really get this share at all.
I had a read of Mr Pitts CV. It seems obvious (to me at least) that he got the job on the basis of a shortage of quality candidates. Although, perhaps his digital experience, whatever that means, will be of assistance, its hard to see how not having spent five minutes in the newspaper business can be anything but a negative. I suspect that the Irish Independent is going to head even further downmarket from here, and thats really saying something. As it stands, independent.ie and The Sunday Independent are dreadful. I do think that this share is worth a LOT more than it is priced at today though. People like dreadful.
It seems like this share really rides the wave of sentiment more than it should. It really does appear to undershoot when market sentiment turns negative.
Their peers. Their peers. Their peers. Apologies for the spelling.
Totally agree. On a P/E ratio, they are below there peers and the sector average, which seems odd. Very well run, geographically diversified, debt situation under control and with a healthy dividend. I do think that the recent news of added capacity, low volumes and poor economic growth in Europe have affected the price negatively.
Hi, Does anyone know where you can see a list of the daily trades for Smurfit Kappa on the ISEQ online?
Found it. Because the price differential between recycled container board and OCC has reached the top of the pricing cycle, a German Paper manufacturer has decided to open a new container board plant. More supply coming on stream. Market doesn't like it. Boo.
Does anyone have any specific news on Smurfit Kappa? It seems to suffer rather violent descents in price for no specific reason I can see.
Totally agree with you John. Glad to see it on the rise again....
I'm not even half an expert, but these results really do read very positively to me. And yet, instead of even a 5% pop, the shares drop on the open. While I have been lucky enough to have held some of these from the €4 mark, when Davy / Goodbody were quite literally screaming at people to buy them, I would love to know what keeps this "unjustified" valuation discount in place. Davys have been calling €24 since the middle of last year, yet they have steadily dropped.
I read one broker who said that the market is waiting until they see who takes over from Vincent Crowley. Which seems reasonable. On the other hand... The Irish Independent just sponsored a major sporting venue and the stadium is now named after them. Pretty positive long term I would have thought.....
Could you post a link if you can? I couldn't find it....
Am away at the moment so can't watch the results presentation. Just catching newspaper reports. If it as as it looks; circulation stabliised; print revenue slowing it's downward trend; and, growth in digital revenue.....then I think they have a fighting chance in the recovery. Initial thoughts are that I'm happy. I would say the Vincent Crowley was becoming increasingly lost in meetings about social media, digital advertising and had v soft paywall implementation........I really hope they don't replace one dinosaur with another........
Good point, but I actually don't think its quite accurate for two reasons: 1. DOB didn't have to issue shares to raise the money to take up the rights issue in APN. Whether or not, for example, the board of INM believed the share price of APN would bounce or not, this would still have been a big problem for INM to do. In effect, DOB can do what he likes with his own money. 2. Its possible that DOB may have anticipated that the share price of APN might go down after the capital raise. In my opinion, however, he probably didn't think about it at all. He is no doubt investing on a much less immediate timeframe….so the initial reaction is not important. The overall recovery of the company over a 3-5 year window is what matters. Then again, I haven't a clue what a guy like DOB thinks about anything…..
I definitely don't think they will find the answer in circulation figures. They are never going up again. For anyone. I do think that if they can unlock the digital potential of their offering through recovering advertising spend, the significant reduction in costs and debt profile will hopefully see them move back to profit. Perhaps even the tiniest of dividends??? On the rights issue, thats a tricky one. If they had agreed to it, shareholders in INM would have thought this could mean another capital raise which would have really damaged INM with a tanking share-price. And there was no way of knowing the share price of APN would bounce as a result. Perhaps INM would have been the only people to take up their rights…..in that scenario they could have had the double whammy of a tanking share-price (INM) with a tanking investment (APN). Its all a bit of a lottery really. I still think, on balance, they made the right decision. I also this that the reaction of the INM share-price (basically, no reaction) confirms this. But each to their own….
APN shares jumped 33% in Australia overnight when the trading halt was lifted. I think that both Denis O'Brien and INM made the right calls respectively. I've been through the restructuring plan for APN reasonably closely and it looks good. Cleaning up, selling off and focusing on a core business. Their debt profile is now reasonably low (2.7 x EBITDA I think) and the capital raise must have been a success (based on the fact that the shares jumped last night). I much prefer companies to focus mainly on a core business and either succeed/fail, rather than get dragged in multiple directions and get trapped in the quicksand of too much debt. Mostly though, I love the way that nobody bothers to post on this message board because INM is out of favor with investors. INM is now restructured (debt), slimed down (costs) and well-funded (capital raise). The holy trinity of restructuring. My gut tells me that this will swing sharply in favor of investors over the next 3-5 years.