Jump to content

SMDS - DS Smith - Buy


Recommended Posts

So if we look back at my chart from the 11th April you will SMDS paid off nicely for us hitting both targets.

Since then the company has moved into the FTSE 100 and has shown good growth over the last year. We have seen a small pull back to the 520 area after profits came in slightly lower than expected.

Technically the RSI & STOCH are shown oversold. Volume is steady at over 4m.

Looking at an entry above todays high. Stop at 500, TP 600.




This is just my opinion of the company and not a trade recommendation 





Link to comment

it is true it has had a great run since 2009, anyone buying back then would have seen a 10 fold increase in their investment. I don't know much about the company, but thanks for posting this chart.


I would note that its operating margin is steady at about 6% average over the last 10 years but in the last three years it has managed to increase this to around 7-8% which is encouraging as demonstrates some pricing power.


I personally would not be buying now, I note the broker consensus has downgraded (although only slightly) and if it met FY18 PrTP target of £429.5mn then I'd say the price now is about right, with mcap at £5.5bn. Definitely something I'd look to buy a bit of in any market correction.


Appreciate your post on this, and any other insight into the co. you may have.



Link to comment

Nice analysis Rimmy, always good to get another point of view.


Price dropped on the open so it's now an invalid trade for me as I have a strict set of rules I use to enter a trade. Mostly based on technicals with a pinch of fundamentals. Looking at todays volume I would say it has found support but really I need to see a few more days of price action to really see where it is going. 


I do find you fundamental analysis interesting. I do a very basic scan through financial reports but nothing as in depth as yourself. I notice you use Sharepad as well. Great bit of kit.

Link to comment

Johnfmt wrote:

Nice analysis Rimmy, always good to get another point of view.


Price dropped on the open so it's now an invalid trade for me as I have a strict set of rules I use to enter a trade.

saw that too, and wondered how you handled it. 

I think you have identified here a good co, but price seems to be about right (unless there are other acquisitions or other earnings-beating news I am not aware of.


Maybe have a look at SBRY, I think there could be a short term trade there :)

Link to comment

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
  • Posts

    • Sainsburys full year earnings and Unilever’s first quarter trading update both say the same thing, UK consumers are in for higher prices. The war in Ukraine, supply chain issues and the effects of ongoing Covid all to blame.      
    • US Dollar (DXY) Daily Price and Analysis US Q1 GDP may stall the greenback’s advance. A 20-year high nears for the US dollar. The multi-month US dollar rally continues with the greenback printing a fresh high today ahead of the first look at US Q1 GDP at 12.30 GMT. The US dollar basket (DXY) has been boosted by renewed weakness in the Euro and the Japanese Yen, as investors move from lower-yielding to higher-yielding currencies, while safe-haven flows continue to benefit the greenback. The US growth release later in the session is expected to show a sharp slowdown from the robust Q4 figure of 6.9%. The markets are currently pricing in growth of just 1% for the first three months of this year, with the slowdown mainly due to a reduction in inventory accrual over the quarter. This release is unlikely to move the greenback, unless there is a large miss or beat, as the Fed believe that 2022 US growth will be robust enough to let them tighten monetary policy sharply without damaging the economy. The latest US Core PCE data – the Fed’s preferred inflation reading – is released on Friday and this may have more effect on the US dollar than today’s GDP data. For all market moving economic data and events, see the DailyFX Calendar. The ongoing US dollar rally has been aided by weakness across a range of G7 currencies including the Euro, the Japanese Yen, and the British Pound. The Euro continues to battle with lowly growth expectations, exacerbated by energy concerns, the British Pound is mired by weak economic data, while the Japanese Yen is in freefall as the BoJ continues with its ultra-loose monetary policy.   The US dollar continues to press higher and looks set to break above 103.96, the March 2020 high. Above here the US dollar would be back at levels last seen nearly two decades ago. The March resistance will likely hold in the short-term, especially with month-end portfolio rebalancing at the end of the week, but US dollar strength is set to continue in the months ahead. USDOLLAR (DXY) WEEKLY PRICE CHART – APRIL 28, 2022 {{THE_FUNDAMENTALS_OF_BREAKOUT_TRADING}} What is your view on the US Dollar – bullish or bearish?   Apr 28, 2022 | DailyFX Nick Cawley, Strategist
    • While Tesla has nothing directly to do with Elon Musk buying Twitter - TSLA stock closed down 12% on news that Musk may have to sell stock and use other holdings to stand against the loan to finalise the purchase of the social media giant.        
  • Create New...