UK Stockmarket 2009 and beyond

JonnyBravo

kittie wrote: »

I never mentioned the price I got for emed yesterday. 11.805p so the shares must have been in demand at the time. Volume traded will be interesting today

Thats a good price.

Volumes lowest of the week so far today, but still about average. Looks like sells going thru at 12ish now but marked at 11.75/12.5.
People still buying at 12.44, 12.625.
It does seem to me that plenty of people are holding for news of permits.

sabretoothtigger

Payroll figures apparently very positive, Iam reading about a market pullback though. I'll put the graph at the bottom


In terms of risk management it was good to sell emed I reckon (though I didnt buy to begin with, didnt click for me).
The only other attractive option I think is withdrawing the original capital and gambling all the profits on a continued rise, that way you can raise the risk factor alot without any regret. It does mean paying more commission though but I do like to maintain a small interest in every stock I buy or sell, I guess if nothing else it keeps me attentive to any future opportunities with it. But with no div and totally speculative business that might be the wrong angle tbh

Rex, Im not sure if we can identify a reasonable price to buy in on that. Thats just one to watch or read about more for me but then I do tend to watch for too long so each to their own




Divergence to the negative

Bottom line: A pause is in order. In our humble opinion, at minimum to 954 (38% retracement) or down to the 937 area (50% retracement).

http://wallstcheatsheet.com/?p=1165

[Deleted User]

Thanks for the heads up re REX steve. I have just spent all my emed money on it, including emed profits. Nice graphs and it has dipped back to fill the march gap to 242 so imo risk/reward profile is very good

Fingers crossed for you jonny

sabretoothtigger

This REX - http://uk.finance.yahoo.com/q?s=REX.L

Nice yield but yes they have only fallen back to june values, so no big deal or a case for distress stock if thats your angle

Consumer related, western based, not especially attractive but the price of steel has fallen I guess


Theres some support 260, 270 and if they break that then 220

Previous rex comment, when is the actual rights date done and dusted. Ive watched a few shares do this in the last year and that was often the time to buy for at least a short term rise

Drinks can maker Rexam, which has substantial operations in Milton Keynes and Luton, has announced a £351m rights issue alongside its half-year results – just a month after refinancing a £775m credit facility.
The FTSE100 company, which reportedly has a debt pile of £2.7bn, says it is comfortably within the terms of its covenants but depressed global trading conditions have applied new pressure on the business.
Investor sentiment was inevitably depressed and the share price plunged more than 12 per cent – over 39p – as the news hit the marketplace at the start of the trading week.
Rexam, which makes more than 50 billion cans a year for beers and soft drinks, including Pepsi and Red Bull, said continued depressed markets meant the chances of it losing its investment grade status were now “unacceptably high.”
A statement issued by the plc in the wake of weekend press speculation said that despite the prevailing trading conditions in recent months, which had shown no upturn from the first quarter, half-year results would at least meet market expectations.
It said covenant headroom remained comfortable, with net debt to ebitda of 2.6 times at the half year and well below the principal debt covenant of 3.5 times.
Cost saving initiatives already introduced would have a beneficial impact in 2010 but on their own would not be enough to future-proof the company, the statement added.
“Accordingly we are considering a number of options including an equity raising.”
Rexam is the world’s second largest consumer packaging company. It is the leading global beverage can maker and one of the global leaders in rigid plastic packaging.
Turnover is around £3.6 billion and the business employs some 24,000 people in more than 20 countries.

http://www.ft.com/cms/s/0/8751a6b4-7c06-11de-a7bf-00144feabdc0.html

Announcing the 4-for-11 rights issue at 150p a share, the company said it is "taking proactive measures to maintain Rexam's investment grade credit rating". Alongside the rights issue Rexam issued interim results, which showed weak trading conditions persist, prompting a significant cost-cutting exercise. The outlook for the second half appears grim: "It has become increasingly clear that the effect of the recession on Rexam's trading will be deeper and more sustained than previously thought. Destocking has now given way to reduced underlying consumer demand". First-half revenues rose by 15 per cent, driven by currency gains, but underlying pre-tax profits were down 15 per cent.
But of bigger concern to management is the debt pile, which stands at £2.1bn, threatening its credit rating. Rexam admits that some metrics used by credit rating agencies already place the company at sub-investment grade, although its rating remains at BBB- with Standard & Poors.

SHARE TIP UPDATE:

FairlyPriced

Rexam has succumbed to the recession later than most and this could place it on the back foot for some months, as it battles against hefty debts. The rights issue may prove a short-term sticking plaster, but debt reduction will dominate management thoughts for some time. We downgrade to fairly priced at 255p.
Last IC view: Buy, 265p, 23 Feb 2009

http://www.investorschronicle.co.uk/Companies/ByEvent/Fundraisings/Inbrief/article/20090729/ced44c1e-7c27-11de-8bc1-0015171400aa/Debtridden-Rexam-requires-rights-issue.jsp

80 per cent of Rexam's debt is in US dollars

dollar weak recently but its possible its turning back, been flat a weak now

JonnyBravo

kittie wrote: »

Thanks for the heads up re REX steve. I have just spent all my emed money on it, including emed profits. Nice graphs and it has dipped back to fill the march gap to 242 so imo risk/reward profile is very good

Fingers crossed for you jonny

Thanks kittie. Now pricing 12.5/13 and it's only buys going thru still.

Moving on up!

A very very good week..... definitely having some beer tonight :beer:


Woah!

Big jump to 13/13.25.... this might shake a few out the tree?

.......


But not me...... I'm still sticking in there :beer::beer:


13.25/13.5!!!!

Still heading north.... faster than I can type!

uk_steve

@ Kittie i feel nervious because i feel like i have talked you into buying this share

Personly think rex has 25% rise in the next 12mths (so its a better return then savings in a bank) that is based on £2.25 per share

i actually have a limit order @ £2.20 (i hope i dont regret not taking the price of £2.25 if this share moves up quickly soon)

i let you know if i have got the share very soon ;-)

[Deleted User]

no steve, no-one can talk me into anything, stop worrying. It was one I looked at ages ago. I needed to have some more industrials in the portfolio and it is better that cash sitting in the sipp at just about 0%. Well I do have cash ie 42p left. If I lose the lot then so be it and it won`t be as bad as when I was in lloy and rbs and hbos

emed is doing well on paper, all private trades (0 type) and not the AT (auto) trades that are everywhere. That makes me think that sentiment is taking too big a part ie the sheep herd is getting bigger

JonnyBravo

kittie wrote: »

emed is doing well on paper, all private trades (0 type) and not the AT (auto) trades that are everywhere. That makes me think that sentiment is taking too big a part ie the sheep herd is getting bigger

I've not seen an AT trade ever go through for EMED..... why would that be?


13.75/14 :eek:



14.25/14.5


<off for lie down.... but not selling yet :-)

uk_steve

@ Kittie same as me i do what i feel ;-)

all the best

uk_steve

JonnyBravo wrote: »

I've not seen an AT trade ever go through for EMED..... why would that be?


13.75/14 :eek:

maybe the amount of shares to buy or sell are over the stock limit??

i have had a few of these over time and its very random
even if its below the limit:rolleyes:


1 day its a NO NO and the next day its Yeah Yeah

strange really