Member Info for TheBlueShadow

Thank you, I had found some of this on the Saturday as I went digging for reasons why people weren't investing. I saw enough to cancel the trade and I threw it into renew holdings instead, because i aleeady had a few of those in my portfolio but my current position in Renew was quite small.

Hi all, I've put a small buy order in (expecting it to execute on Monday). This looks unbelievably good on paper - the market cap is 6.51bn ZAR (GBP 273.42 million) and the pre tax profit is GBP 117.68 million and the forward EPS growth is forecast as pretty good for the next two years and the net gearing is neg;igible, the EPS growth has been in the hundreds of percent 3 out of the last 5 years, the PE ratio is low, the PRG is well below 1... It kind of looks too good, but it also looks like no one is investing. Are there any things lurking in the shadows that could be a bit red flaggy that I should know about? It might or might not put me off - probably wouldn't because it's a small punt - but, it would be good to know what I'm getting into.

I got an email alert today for a bid price crossing the £0.55 line. I had set the alert a year or two ago, and forgotten about it, but I had also bought more of them last week; so, I need to up tgat target.

I've been in since a short time after they listed. Good management, good results, regular dividend increases. When we next have a building boom, we're positioned to do well. Can't see myself selling any time soon.

When I received the letter about it, I assumed it was already a done deal - thanks for the clarifucation

Spoke too soon. The results were to be expected, though, and the next five years are looking a lot brighter for this share; so, I'll wait.

Looks like I bought right

Record date for the dividend (£0.12 per share) I'd 6th September. Might as well keep hold of them. There's also the 2025 interim dividend according to the takeover communication.

I'm going to wait for at least a few days, but probably a week (obviously, it depends on price movements) and then decide.

I was screening for value stocks just now. My main criteria was the "magic fotrmula" (low P/E ratio and high return on assets). These came up for fairly low P/E relative to the sector, and I already have quite a few of them in my portfolio. If I've calculated the RoA correctly, then it's ca. 7 point something percent. Over 5% is generally considered good; so, I figure that 7.25%, while unspectacular, is pretty good, considering the market conditions in the period.

Got a few more metrics, such as risk factors to look at yet, but I think these were a good buy and I will probably increase my stake a little in the near future.

If IP pull out, MNDI might just reiterate their offer. Personally, I'd like things to stay as they are for a few more years of dividends

@jlovie No. it really doesn't, if you have chosen the cash option.

Looking a bit deeper into the fundamentals of both, I can sort of see it. But, also, not really. SMDS is valued higher on both the P/E (P/E = 32) vs. Mondi (P/E = 17), and also to the quotient of the market cap divided by the 5 year average of pre-tax profit. And, SMDS has a higher net/debt pretax profit quotient than that of Mondi. However, SMDS's Net Assets have increased year on year every year for five years and they have been working to reduce cylicality; whereas, the picture at Mondi is less clear. Both are undervalued, and CS are, indeed, agreeing that is the case; but, I think SMDS wins out on having fresher ideas and having somewhere to go.

it's a law unto itself this one. That law being "what goes up must go up."
Longforecast for the FTSE 100 currently has the FTSE 100 index hitting 8216 (as a mid value) by August 2022; so, I can well see this share going significantly higher in the mid-long term.

These are now looking cheap at this price

If nothing more happens in the takeover/merger saga, then we get a fixed price >600p per share in a few months time. Why are people selling at <580p now? It's not like there are many other investement opportunities that need the capital right now - if you look at the longforecast for the FTSE indices, you can see that you have until Jan/Feb 2022 before the FTSE starts to improve. People might as well leave their money in here until the final settlement from Norton - most other shares are going down in value, right now. At least with this share you have a guaranteed >600p sale price when Norton take over.

all good fun

Here goes

Don't worry. In most years, activity, and the FTSE itself tends to increase in October through to (at least) late December, and DLG is now quite a good buy for anyone wanting to include some defensive long-term dividend stocks in their mix.

They mean this market area is growing and, hence, the SP will increase; but, they Credit Suisse are downplaying how much DS Smith will increase by, on the basis that they think that it is trading closer to their idea of the fair value, as compared to other companies in the same market that Credit Suisse favours. They might be right and I can certainly see it breaking towards 475, and then a short pause and then heading further up. I think the truth probably lies somewhere between Credit Suisse's $500 (470p) target and the other recent broker forecast target of 570p; but, certainly above the Credit Suisse.