BigFatRon
02 Jan 2018
Today's fall Nearly five per cent down on the day - presumably off the back of the Chinese plastic waste import ban.I suspect this stock will stay volatile for a while until the medium-term situation is clearer.
Hydrogen Economy
29 Dec 2017
Re: Worries over plastic recycling costs... I bought in August to October and have seen price drop which is a bit of a concern but after the rise from 720 in June, some retracement is perhaps not too surprising.The forecast adjusted EPS from Digital Look for end March 2018 and 2019 are 70.15p and 75.72p against 62.20p this year. 2018 PE 12.7The 4T undjusted numbers 18/19/20 are 54.6p, 69p and 72.3p vs 37.1 this year. 2018 PE 15.9The forecast 2018 EPS number have been increased on both sites in the last few weeks.Worries about whether the costs provisions and other consequences of acquisition is masking poor performance is often a worry for companies which make numerous acquisitions. Here it is core to the business strategy and so unavoidable. AHT SP was pushed down with similar concerns being raised but have proved the doubters very wrong. I cannot be sure about RPC but will hold and watch developments. A rights issue would likely give another hit. On the regulations affecting plastics, that remains a concern, particularly in Europe which is waking up to the issue, how big an impact and how soon remains to be seen it could cause accelerated consolidation in the market and maybe benefit RPC.Happy New YearH2
Hardboy
28 Dec 2017
Re: Worries over plastic recycling costs... Share the concerns, but RPC has delivered very well in terms of bottom line. (Share price is a different thing based on market's fear & greed) As long as they continue to increase profits and dividends, we shareholders should have no complaints. As to where to invest: interesting question. This time of year all the "experts" come out with their predictions for the year ahead, and their tips. Most I have read are confused. They all seem to worry that the equity bull market has been running so long a fall back is inevitable; but they also feel the fundamentals continue to support continuing growth. As always there are good opportunities to be found. Good luck!
The Dutchman
28 Dec 2017
Re: Worries over plastic recycling costs ??? Yes this is a worry - indeed the SP performance of this share ( one of my very largest holdings!) is worrying. Despite good results, increasing Divi's and an ongoing share buyback programme the SP keeps falling. It is now about 100p lower than the theoretical ex rights share price at the time of the last rights issue about a year ago. Therein lies another problem I think: the company has had large acquisitions financed by rights issues at yearly intervals for the past 3 or 4 years. After criticism they said they would not make any further large acquisition sin 2017, well obviously that self imposed standstill is about to expire, so I think that some are concerned about another rights issue in January or February which will act as areal drag on the SP. I for one will not invest more money here as it's too large a part of my portfolio already and not performing for me!But where to invest ?? I will shorty get my hands on a sizeable pension transfer pot and so will need to be more in than out of the market.
Clued-in
27 Dec 2017
Worries over plastic recycling costs ??? Are the current share price drops because of worries over possible extra plastic recycling costs being recommended by an MP Committee after the relevant UN committee said that governments need to make Packaging Manufacturers more responsible, etc...??? If the latter incur extra costs then surely it will be passed on to all consumers somehow......!!
Hugh Betcher
18 Dec 2017
Re: in for less but into win I got a little bored with this and with the risk that the accounts are being fudged or further acquisitions will increase the risk profile I took my 10.3 % profit (an IRR of over 18%) and sold today at 871p. Not bad in just over 8 months but not as exciting as I had hoped. Good luck all who remain.
Clued-in
15 Dec 2017
Re: citywire / hargreaves Why is the Share price down 3% today then with the FTSE100 Up ? I'm a LT holder but don't like to see such a drop for no obvious reason. Manipulation by algorithms / hedge funds, etc...?????
r21442
30 Nov 2017
citywire / hargreaves Plastics manufacturer RPC Group (RPC) has shaken off concerns about poor performance and Hargreaves Lansdown believes its strong grip on its finances mean it will exit 2017 ‘in peak condition’.Acquisitions pushed up half-year revenues to £1.9 billion, representing 45% growth at constant exchange rates. Cost savings were reflected in a 47% increase in adjusted operating profits to £214.7 million. The shares fell 6.5% to 902p yesterday.Analyst Nicholas Hyett said: ‘After concerns that deals were masking poor performance, the successful integration of recent acquisitions and decline in exceptional costs is key to proving to sceptics that the RPC strategy is delivering value.’Although the management team promised shareholders it would not make any more acquisitions this year as it needs to focus on integrating recent purchases, Hyett said talk of consolidating the European plastics market showed RPC was ‘champing at the bit’.‘We wouldn’t be surprised if RPC returned to the mergers and acquisitions trail as soon as it can next year, and we’d support that move. But in the meantime the financial rigor being imposed on the group should mean it exits 2017 in peak condition,’ said Hyett.
oldjoe1
30 Nov 2017
Re: RPC yesterdays fall a BUYING OPPortunity... RPC Group....... broker viewsDate Broker Recommendation Price Old target price New target price Notes30 Nov 17 Numis Add 930.00 1130.00 1130.00 Retains30 Nov 17 JP Morgan Cazenove Overweight 930.00 1250.00 1250.00 Reiterates30 Nov 17 Credit Suisse Outperform 930.00 1180.00 1210.00 Reiterates29 Nov 17 Credit Suisse Outperform 930.00 1180.00 1180.00 Reiterates28 Nov 17 Deutsche Bank Buy 930.00 1140.00 1140.00 Reiterates
oldjoe1
30 Nov 2017
Re: RPC yesterdays fall a BUYING OPPortunity... RPC - Credit Suisse raise TP on Outperform Recommendation from 1180p to 1210p.
oldjoe1
30 Nov 2017
RPC yesterdays fall a BUYING OPPortunity.... RPC RPC Group.......really surprised at that sell off yesterday after very solid results. Cash flow is O/Standing. Strong fundies, expecting a recovery today so had a few bobs worth.Big broker backing as well.
cosmos
29 Nov 2017
As an aside there was a very interesting article in the recent FT weekend about the rise of algorithmic trading and the impact of ETFs. Both strategies are constantly tweaking portfolio allocations. Market movements are exacerbated both up and down as a result, as any larger short term movement becomes a self-fulfilling prophecy. Personally I think this no bad thing for the LT private investor as it allows us to buy good assets cheap, whilst the ever growing proportion of "dumb money" just churns. In the LT intrinsic value creation will win out and be rewarded. In this respect nothing has changed from Buffet's early days...
cosmos
29 Nov 2017
Couldn't agree more. You have a company with an annualised FCF yield north of 10% and double digits ROCE. One parallel I can draw is with Smurfit Kappa. After their blow up it look them several years to regain trust (whilst paying down debt, which was far higher than RPC's current multiple at peak). Despite a very strong share price rise SKG arguably remains undervalued. Brokers certainly seem to think so. And the same goes for RPC. For once I think the brokers have this dead right and the market dead wrong with target prices far north of current. Bottom line is that our company is a (lower risk) cash machine, which in today's low yield world is not something to be sniffed at. I am generally a LT investor and have used today's fall to top up. I sincerely believe the market will get there. Fill your boots whilst you can
Hardboy
29 Nov 2017
Re: H1 Results Completely baffled by the market's reaction to some excellent results. Thanks to everyone for posting possible reasons, but not seem strong reasons for a 6% drop. It's almost as mysterious as the success of Bitcoin.
r21442
29 Nov 2017
Re: H1 Results Yep, failure to comprehend the numbers continues to hamper progress. I am OK with that. Board responded with a halt to the takeovers last time. It might just need the passage of time for analysts to get comfortable? Or maybe there is indeed sleight of hand however unintentional? Or the board still need to do much more? Multiple reasons why analysts might not like the stock including the company not giving them enough insider info for them to make a killing at the expense of PIs? Cynical? FWIW I'd much rather there was caution. Divi well up is the best sign but no guarantee.
