Im looking at rentokil shares, they seemed to be trading well below peers in the market.

Is it purely sentiment.

further falls today.

Further details from them november the 7th.

Chart wise they are setting further lows -

any considered opinions.

Im thinking of these as a investement on a longer term - 3-5 year window tucked away in my ISA.

This is one I have been considering but, what has put me off is the level of debt during these more competitive times. The new management, who proved competant at ICI, has its work cut out with this Company, since it is trying to reorganise during a downturn in the economy. The traditional pest and cleaning businesses are good for cash flow but, it is a pity the Management have not had sufficient time to possibly offload City Link before the downturn since this would of strenghened the balance sheet. The sp ran up to 80p on the appointment of new management but the market is beginning to concentrate more on fundermentals. I think this Company will be a recovery play for the patient and 3-5 years sounds right although the sp could move up in anticipation before that.Keeping watch for now.

cheers guys, my sentiments exactly. 3 - 5 years recovery to 80p - 1 would be excellent

This is in danger of becoming another penny share in the current downturn I expect a sp of 10p the way things are going.

I expect more news in Sundays papers regarding the imminent rights issue.

Rentokil hit by poor City Link trading
Jamie Dunkley, 18:06, Monday 7 November 2011

Rentokil has admitted it does not know whether its City Link delivery business will make a profit during its core Christmas trading period.

The group, which also specialises in areas including pest control and security, saw pre-tax profits dip 8.4pc to 36m during the three months ending September 30, missing analysts' forecasts. Growth across most Rentokil units was offset by an increased operating loss at City Link, which widened to 6.8m from 1.3m a year earlier, because of lower prices and more competition.

Alan Brown, Rentokil chief executive, said: "We are not yet clear that we are going to get profit in Q4 (in City Link). A lot will depend on how trading goes over the next few weeks. I think we are definitely going to get revenue growth, whether we return to profit will really depend on how quickly we are able to make progress on our productivity agenda."

Asked whether Rentokil could sell the business, he added: "I don't think that is likely."

Elsewhere in the group, operating profits rose 3.6pc to 31.6m at Rentokil's textiles and hygiene business, helped by strong trading in Germany and the Benelux region. Operating profit also rose by 1.5pc to 33.6m at its pest control division, where the company expects to return to Libya in the coming months.

Rentokil said it had also made 37m of cost savings in the year date, although the intended full-year target of 60m in efficiencies would now be cut to 50m to 55m.

Mr Brown added: "The new business pipeline for 2012 is very strong, and our operational excellence initiatives in customer care, service and contingency planning are in place, though more progress needs to be made on productivity."

The shares fell 2.65 to 66.3p.

It is time to let rat-catcher Rentokil out of the dog-house, according to Peel Hunt, as the fallen stock market star appears to be finally getting to grips with its troubled courier business unit City Link.

"The turn-around of City Link appears to be getting back on track. Once it is clearly demonstrated that the business is fixed, there is the potential for a higher rating for the shares," reckons Christopher Bamberry at Peel Hunt. "Meanwhile, however, we remain concerned over the mounting European headwinds Rentokil faces and the mature commoditised nature of their end markets," Bamberry added.

That may explain why he has stuck with his target price of 75p, slightly below the current market price. The broker's recommendation, however, is now to hold the shares rather than sell them.

Rentokil Initial is also approaching a new high today, reaching 89.5p. This is another company that has been recovering well this year, although its forecasts aren't quite as strong as some. There is only a 2.4% dividend expected, which is a fair bit less than the firm was paying back before its slump. But at least the price is headed in the right direction.