Market's view on Reckitt
Published on April 2024
- Concerns are raised about the stock appearing as a value trap with further price drops anticipated, potentially testing lower thresholds.
- The company is actively buying back shares, with daily purchases amounting to 8 million GBP.
- A significant decline in share value is noted over the past year, with over 33% lost.
- Speculation exists about the potential impact of an upcoming dividend, and whether it’s beneficial to hold shares for this reason, suggesting it might be a false economy.
- The market capitalisation has significantly decreased since a court ruling, with discussions around potential worst-case scenarios and their financial implications.
- Some stock watchers are considering the possibility of the company being acquired cheaply by a US company familiar with navigating the American legal system.
- General sentiment among some participants is to wait for a better entry point into the stock over the next month, especially with an upcoming dividend.
- There is a mention of the stock being a good trading asset, though the risk-reward ratio is currently not favourable.