It is a busy Thursday (as usual). I still remain rather grumpy about the recent decision from the CEO of BT Group (BT.A) to exit the business, given he has still got loads of his promised job to do. Despite personally using the telecoms company across a bunch of such offerings, if its shares get back to a 150p plus level then I am selling out and moving on. And if you believe the bid rumours…then keep your fingers crossed. Instead, I am going to talk today about Rentokil Initial (RTO) and the world of rats, termites and much more.
About six months ago I observed that Rentokil Initial (RTO), founded in 1925 as a pest-control business, was “almost perfectly in the middle of the 450-600p range over the last year”. And that it “need to be a bit cheaper to have another look…if you own the stock, then you have probably held it for ages and are very happy to do so, but there is no need to chase this one if you do not”. A bit like the FTSE 100, there has been just a bit of volatility since then but now we are kicking around a similar share price. Is there any need to change my thoughts from back in April, or not?
Until I looked yesterday I never would have guessed that Rentokil Initial (RTO) - founded in 1925 as a pest-control business - now has a market cap of just shy of £10 billion, so if you have held the stock for the last decade or so then you would have done rather well. But what has gone has gone, so what should investors be thinking now about the “world’s leading commercial pest control services provider (and) the world’s leading commercial provider of plants and scenting” which now operates in nearly 90 different countries around the world?
Pest control and hygiene company, Rentokil Initial (RTO), wasn’t looking particularly strong even prior to the arrival of Covid-19 and was trading at a very racey valuation, in my opinion.
Early last month, I pointed out that Rentokil Initial (RTO), the £2 billion plus market cap services support company, was not far from what looked like a potential one year trend support line. At 118p, according to my inspection of the share price chart, the share seems to have reached that support level. So will it bounce off it?
Rentokil (RTO) the services company know to market wags (in the old fashioned sense of the world; nothing to do with the female consorts footballers) as the 'Royal Rat Catcher' has been rattling away and is now has the attention of an international investment bank which make a share to buy. It has risen 34% over the year when the FTSE 100 has gone up only 3.3%. Can it sustain this pace?




