DS Smith (SMDS) “is pleased to announce the proposed sale of its De Hoop paper mill in the Netherlands to De Jong Packaging for a cash consideration of €50 million (c. £43 million)”. Good news from this leading provider of sustainable paper-based packaging?
At 425p, shares in fully fibre-based, innovative packaging for consumer goods company DS Smith (SMDS) are well up on our 321.8p offer price November recommendation but is there more to come, particularly following results for its year ended 30th April 2021 and “accelerated opportunities a post-Covid-19 world offers”?...
I admit I am very boring when talking about everything including shares. It is amazing that my wife is still with me. Back in April, I observed about FTSE 100 name DS Smith (SMDS) I ‘typically loving-up its exposure to e-commerce delivery box-making…along with a capability for sustainable packaging solutions, paper products and recycling services worldwide’. The share has historically worked really well for me - especially over the last nine months - but I do admit it has made little further progress since my last write up a couple of months ago. So should I still be excited or start to consider alternative options after today’s publication of its full year numbers to the end of April?
I have written many times about DS Smith (SMDS), typically loving-up its exposure to e-commerce delivery box-making...along with a capability for ‘sustainable packaging solutions, paper products and recycling services worldwide’. I know this is not that exciting an area but the first bit in particular has growing demand all around the world. Even the average company is working out that to be competitive against the Amazons of this world, having such a box option matters. Unfortunately for them DS Smith is a big supplier to Amazon too...
Today’s numbers from the paper and packaging name Smurfit Kappa (SKG) were damn impressive in my opinion. Certainly it is no disaster to say that 'prices rose rapidly in H2...and continue to see prices increasing in early 2021’. And when you look a bit more deeply, you realise that the rise of e-commerce remains a great growth area as firms such as Amazon are driving a lot more demand. Smurfit Kappa’s CFO observed that such demand is ‘here to stay’ and even Brexit was not that much of a concern given that the company produces locally rather than relying on significant exports between Ireland/Europe and the UK.
Recent recommendation packaging company DS Smith (SMDS) has announced results for its half-year ended 31st October 2020 and that there’s “growing momentum into H2”...
An early this month “Pre-close statement” from DS Smith (SMDS) included “corrugated box volumes in and throughout Q2 have returned to growth… The step-change in use of e-commerce is clearly established across our territories with very high demand from customers for e-commerce packaging as we head into the festive season”. The shares responded higher... but the current share price compares to approaching 400p early this year and, with also a dividend expected for the company’s half-year which ended 31st October 2020, there looks further recovery value here...
Over time packaging company DS Smith (SMDS) has been a real friend to me, as well as giving me plenty of geek opportunities to talk about packaging (which is now formally my third favourite geek area to talk about after ball bearings and tyres). Back in July I wrote that 'if the share is still below three quid, expect me to be supplementing my holding...corrugated board is much sexier than Mr Market is perceiving it'. Well as I write the share price just about is still below three quid and I have built up my shareholding further over the last few months. Judging by today's update, I am not ruling out doing so again...
Don’t worry, I do not need to be reminded about the story of King Canute but I think the sell-off in shares in the packaging company DS Smith (SMDS) this morning post its full year results does not make a huge amount of sense – and my instinct is that Mr Market has provided investors with an opportunity to build or instigate a position...
Hello, Share Moochers. Being a green sort of investor, I’ve rather avoided the packaging company DS Smith (SMDS). Like me, you may get hot under the collar at all the over-packaging we see in supermarkets. Particularly the plastic kind. But I’ve learned that DS Smith is a paper packager, not a plastic one. And with paper and cardboard boxes becoming more popular at the expense of plastic packaging, the company could have a rosier future...
There's nothing like a thirty percent pop in a share price to make you feel like an investing genius...even if all this does is compress your loss on an individual share a little bit.
I loved up 'the leading provider of corrugated packaging' DS Smith (SMDS) here in early December, observing that it was "boxing up an interesting opportunity for investors looking out over the next year. I would buy anticipating the share having a '4' in front of it at some point in 2019 as a minimum". Today's update is notable for two reasons. The first is that trading is going well. The second is that it has de-risked the balance sheet following the sale of its Plastics division…
Regular readers will know I like a bit of geek chic in my investment choices and the surprising rise in importance of the packaging sector as both part of the structural rise of the e-commerce sector and as a way for fast moving consumer goods (FMCG) names to differentiate their offering in a competitive world, may have surprised a few people. It certainly has excited me over recent years and a year ago - as I noted here - DS Smith (SMDS) was riding high. The 2018 35%+ share price fall however is striking…
I loved up DS Smith (SMDS)'s trading update just over a month ago and the formal half year numbers see a continuation of my enthusiasm. You cannot quibble with 5% organic growth, a 7% rise in the interim dividend, an 'excellent' bedding down of the new US expansion and it has even thrown a new cheeky deal in to show the continued scope for European expansion. In the world of packaging, paper and plastics I cannot offer you corporate violence and huge fluctuating excitements but I can offer you a decent growth-at-a-reasonable-price company.
A busy corporate update Tuesday and three sets of comments stand out for me.
Fans of The Graduate will recognise the form, if not the precise wording of the title. Life has thankfully moved on from the 1960s and in today’s world of internet delivery and crowded consumer choice, packaging matters from both a practical and differentiating perspective.
Almost as much fun as voting in the referendum earlier today was reading the DS Smith (SMDS) full-year update. Having admitted to a corrugated packaging investment fetish by naming the stock as one of my preferred plays for 2016 in late December when I hear the company mumbling comments like ‘packaging is the new advertising’ or talking about ‘it is not just about a brown box’ or even ‘we lead in digital printing’ excites me.
Back at the turn of the year I chose DS Smith (SMDS) as my second share tip of the year noting that the corrugated board and packaging company was:
Unless you want to stop the conversation dead one tip for a smooth running social gathering event is never to mention corrugated board or packaging. Nevertheless in the ever more consumer convenience world we all live in such products become intimately aligned with ecommerce and retailer brand differentiator trends and that’s why corrugated board and packaging are growing faster than underlying GDP.
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