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Rentokil - down 20% today
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Phil 2
Posted: 19 October 2023 12:39:07(UTC)
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Not a holder here but this seems to be getting slammed today. The news release doesn’t ostensibly seem that bad ?!

(Sharecast News) - Services group Rentokil Initial said on Thursday that its full-year performance in North America was set to be 'marginally below' its previous expectations, citing "near-term market uncertainty".

Rentokil said third-quarter revenues were up 53.3% overall at £1.38bn and 4.3% on an organic basis. Organic revenue growth of 9.5% was reported in Europe, 8.9% in Asia & MENAT, 7.6% in the Pacific, and 5.2% in the UK and Sub-Saharan Africa.

In North America, organic revenues were 2.2% higher in the three months ended 30 September, reflecting a "softer consumer demand environment" than seen elsewhere. Rentokil noted that while customer retention rates remained "resilient", new residential customer acquisition was "challenged" by the current macroeconomic backdrop and a "softer consumer demand environment".

The FTSE 250 group now anticipates that near-term market uncertainty will result in the region's full-year performance being "marginally below" previous expectations. Reflecting the impact on revenue, it also expects regional adjusted operating margins to be in the range of 18.5%-19.0%.

Chief executive Andy Ransom said: "The group delivered a good overall performance in the third quarter. We have a proven, effective strategy to deliver organic growth, focused on strong customer relationships and service quality.

"In addition, the portfolio effect of our global business operating in multiple markets enables us to weather regional headwinds. The strong fundamentals of our operations are further enhanced by our value-creating M&A programme."

As of 0820 BST, Rentokil shares were down 10.93% at 529.80p.

Reporting by Iain Gilbert at Sharecast.com
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Big boy on 19/10/2023(UTC), Newbie on 19/10/2023(UTC)
Newbie
Posted: 19 October 2023 13:03:19(UTC)
#2

Joined: 31/01/2012(UTC)
Posts: 3,816
Who is buyer

BB are you in ?
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Phil 2
Posted: 19 October 2023 13:09:53(UTC)
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Looking at the forums very quickly, it is and isn’t a surprise … some consider it a bond proxy … and it has been rising following covid without as much 2022/23 correction downwards as many other stocks.

Not sure I’m brave enough to participate here! Unless I find some hardy Yorkshire bedbugs under my tattered flannelette sheets and industrial strength mattress protector!
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Newbie on 19/10/2023(UTC)
Big boy
Posted: 19 October 2023 13:29:59(UTC)
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Newbie;283076 wrote:
Who is buyer

BB are you in ?



YES and thanks for nudge Phil. Clearly a punt rather than a term investment.

How is it that Global Investors get it so wrong in a FTSE100 stock. Hopefully all the bears and sellers will be out soon and with some cheap stock on their books MMs might wish to see them open up higher ready for the buyers and bear closing.

All just a big game which is why we should not get bogged down with the top down approach and all the intellectual shenanigans. Forum Members seem to be totally preoccupied with the detail.

I always said by the time it 100% right to buy you should sell....you dont have to read books by many who have never been near a market or even understand it.

Remember MMs would go out of business if they didn't make profits and they dont need to understand all about a "top down" approach.
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Newbie on 19/10/2023(UTC), Phil 2 on 19/10/2023(UTC)
Newbie
Posted: 19 October 2023 14:17:05(UTC)
#7

Joined: 31/01/2012(UTC)
Posts: 3,816
Quote price is jumping all over the place.
I have had to take a few stabs at it ! Some have gone through - others outstanding
What price did you achieve BB ?
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Thrugelmir
Posted: 19 October 2023 14:42:06(UTC)
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Joined: 01/06/2012(UTC)
Posts: 5,317
Phil 2;283078 wrote:
Looking at the forums very quickly, it is and isn’t a surprise … some consider it a bond proxy …


As will be any other stocks. Investing on the basis of financial fundamentals hasn't been necessary for a very long time.
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Big boy
Posted: 19 October 2023 15:18:55(UTC)
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Newbie;283084 wrote:
Quote price is jumping all over the place.
I have had to take a few stabs at it ! Some have gone through - others outstanding
What price did you achieve BB ?


470.4482p.....no dealing problems with AJBell.........fingers crossed.....
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Newbie on 19/10/2023(UTC)
Big boy
Posted: 19 October 2023 15:23:02(UTC)
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Thrugelmir;283085 wrote:
Phil 2;283078 wrote:
Looking at the forums very quickly, it is and isn’t a surprise … some consider it a bond proxy …


As will be any other stocks. Investing on the basis of financial fundamentals hasn't been necessary for a very long time.



Clearly you and Phil know something we and Global markets don't know....kindly share with Forum Members so we can all benefit.
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Phil 2 on 19/10/2023(UTC)
Phil 2
Posted: 19 October 2023 15:43:53(UTC)
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‘Ere, everything I know about Rentokil is at the top of this page, before today I didn’t even know that !

Anyway I bought a very modest number - I missed the best prices as I foolishly got involved in hanging a massive framed print of a nebula over our fireplace. Drills, brackets, spirit level, the lot. Doh.

It does seem a huge drop for what is irritating rather than disastrous news - I’m sure there must be more to it though? Or maybe for some holders they’d just had enough and capitulated.

Maybe someone here has the tools to see whether there were really big sells? Probably a good idea to have checked that before buying actually !! Just like we should’ve all examined this update from the company in detail.

https://www.rentokil-ini...23-q3-trading-update.pdf
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Big boy
Posted: 19 October 2023 16:44:41(UTC)
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Phil 2;283095 wrote:
‘Ere, everything I know about Rentokil is at the top of this page, before today I didn’t even know that !

Anyway I bought a very modest number - I missed the best prices as I foolishly got involved in hanging a massive framed print of a nebula over our fireplace. Drills, brackets, spirit level, the lot. Doh.

It does seem a huge drop for what is irritating rather than disastrous news - I’m sure there must be more to it though? Or maybe for some holders they’d just had enough and capitulated.

Maybe someone here has the tools to see whether there were really big sells? Probably a good idea to have checked that before buying actually !! Just like we should’ve all examined this update from the company in detail.

https://www.rentokil-ini...23-q3-trading-update.pdf



The sellers are our friends and we need them to sell us cheap stock. IMO it's simple when the news comes out sellers appear and the MMs know the buyers will hold off for say 24 hours so they knock the SP as sellers sell at any price. Buyers will have to return over next few days when all has settled.

The MMs know that 99% of Professionals/PIs are not price sensitive and will deal only on MMs terms. The art of dealing is to control the other side with the help of the MMs....simple but very beneficial. Dont seem to teach them about how markets work at Uni ........perhaps someone has written a book on the subject?
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Phil 2 on 19/10/2023(UTC)
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