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Authoritative Independent Monthly Share Selections Using Technical & Fundamental Analysis

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DS Smith - Cardboard producer growing rapidly through acquisitions

August 2015

Investing in shares may lose you all or some of your money. Past performance is no indication of future performance. Some of the shares recommended here may be small company shares, which can be relatively illiquid and hard to trade and this makes such shares more risky than other investments.

  • Epic Code:
  • SMDS
  • Price:
  • 390p
Investors have traditionally avoided the paper and packaging sector because of its cyclical nature and the volatility of raw material prices, but shares in DS Smith, Europe’s second largest cardboard packaging producer (after Smurfit Kappa) have enjoyed a terrific run from 49p at the height of the credit crunch to a high of 398p. Secret of its success has been its role as a leading industry consolidator with a stream of acquisitions driving a near tripling in turnover from £1.4bn to £3.8bn, a six-fold jump in pretax profit to £251m and 326% increase in eps from 5.7p to 24.3p in the five years to April ’15.Founded in 1940 by David Solomon Smith and first listed in 1986, the company originally made carto ...

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With small companies there is an above average degree of risk compared to buying blue chips. Please be aware that we have not assessed the suitability of any of these investments for you. The newsletter simply states a personal view and diarises the editor’s investment decisions. Please speak to your stockbroker or other qualified individual to ascertain whether any of these companies mentioned would form useful additions to your own portfolios. Past performance is no indication of future success.

All material on this website is protected by copyright. You may use Information retrieved from the www.scsw.co.uk website for your own personal non-commercial use which means that you may not sell or copy this information to any third party without prior written consent. ISSN 1358-183X

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