Chamberlin Share Discussion Threads

[rivaldo] 04/7/2012 08:47

Cheers ic2, reads very well.

The LED lighting possibilities at Petrel are new to me and extremely intriguing! The results only mentioned "niche applications"...

The market loves legislation-driven businesses. With 19.9p EPS forecast this year, if all goes well we may see not only a re-rating based on the cheap rating and the sound Balance Sheet, but also a re-rating to a higher P/E level altogether with CMH moving away from their "metal-basher" image.

[interceptor2] 03/7/2012 19:41

Third attempt to break out above 160p looking promising, as long as sellers don't appear we should see some decent progress here.

ic2...

[cfro] 03/7/2012 14:09

Great to see this finally start to move again. About to breakout strongly now?

[rivaldo] 03/7/2012 12:11

Encouraging to see a buy just through at 160p when the published offer price was 159p.

[cfro] 28/6/2012 18:21

Lovely, thanks ever so much riv.

[rivaldo] 28/6/2012 14:12

Worth noting that Trendwatch mag tipped CMH as a Buy a week ago in its fortnightly issue. I won't copy it in full as it's too long and the formatting is awful. But here's the conclusion:

"If all goes according to plan, we are looking to a price-earnings ratio of about 8 this year and a bit less than 7 in 2013. There is a prospective
yield of just over 2%. We are not only adopting a defensive stance here – we would hope that some of that turbo-charged acceleration that we're always hearing Jeremy Clarkson go on about can to be transferred, at least in part, to the share price. Over to you Mr Hair. BUY"

Much emphasis on the new turbocharger regulations too of course:

"There is also a notable market opportunity. In 2010 some 10% of petrol engines were turbocharged. However, by 2015 approximately 80-90% are expected to be
turbocharged. Chamberlin has supplied castings into this market for over 10 years. Recent EU emissions legislation has resulted in the car makers needing to meet the new standards.

The company has been working with a large turbocharger manufacturer for the last two years to take a critical part of the turbo from design to full production. This work is ongoing and further products will go live over the
next 18 months. The company is one of only four specialist foundries in Europe with the technical capability to develop and supply these castings, which currently account for 21% of group sales."

[redartbmud] 21/6/2012 08:29

Electronica

Accepted, but I have a bee in my bonnet about the fact that many southerners believe that England is divided into two halves at Watford, the north/south divide.

Chamberlin HQ in the Midlands.

[rivaldo] 21/6/2012 08:28

IC2, cheers for the GCI tip. If there are no subscribers out there then hopefully GCI will make it available to all after a while.

I've been to the football ground in Scunny :o)) A never to be forgotten away win....

[interceptor2] 20/6/2012 22:34

redartbmud, Not guilty. Extract copied from GCI report.

ic2...

[redartbmud] 20/6/2012 22:24

interceptor

Chamberlin is in Walsall - The Midlands NOT The North.
Just a point of principle.

[cfro] 20/6/2012 19:10

Margin expansion will happen here just a matter of time. These will achieve higher margins than 4% imo too.

[interceptor2] 20/6/2012 17:09

Looks like a buy recommendation in Growth Company Investor today, it will be interesting to read the write up now that they have lost Miles Nolan.

Write up not released to non subscribers, but the first sentence looks positive.

"Engineering firm Chamberlin (CMH) is a cartwheeling bundle of joy in the puddle of despair that is the business of manufacturing in the North."

ic2...

[interceptor2] 20/6/2012 14:19

Results from Castings CGS today, which easily beat estimates could be the reason for the tick up. Just need some volume to break throught the resistance at 160p, but not much volume in small caps at present.

I noticed that CGS net margins are about 13%, so plenty of room for improvement at CMH which achieved only 2.74%. They achieved over 4% in 2004 and 2005, so a return to these levels in 2013 will make a large difference to EPS.

ic2...

[rivaldo] 20/6/2012 08:40

Nice and quiet here, and good to see a tick up.

Time for a breakout to new highs imo.

[cfro] 25/5/2012 18:20

Great rise today and i think we just about have a breakout on the chart now too.

My broadband has been off all day due to maintenance on the lines. Been pulling my hair out today, so frustrating! Grrrr..

[rivaldo] 25/5/2012 09:31

:o)) Good to see you penpont, wondered what was taking you so long!

With essentially 20p EPS this year and 23p EPS next year, and with those legislative/technological drivers in place, CMH is the sort of stock which could be re-rated quite dramatically.

I could see 250p-300p in say 6-9 months if al goes well and the markets aren't too punishing.

Incidentally (for chrisis33), those £9m net assets are actually £11.2m of tangible net assets if you exclude deferred tax and the pension deficit. Not bad against a £12.3m m/cap.

[penpont] 24/5/2012 22:12

Well rivaldo it was me who bought that 5k, having turned down 10k at 146 prior to results :-(

This is one of those times when you need to be detached, look at the fundamentals and just build a stake at any reasonable price you can get. Really, they look worth 200p short term.

[chrisis33] 24/5/2012 16:07

Thanks Rivaldo ...

"Net assets at 31st March year end were
£9.0m which compares with the current
market cap of just over £11m."

[cfro] 24/5/2012 15:43

Stock has never been all that easy to attain here. Ever since i've been dealing in CMH shares i've always personally had to 'pay up' a bit for them. Always been worth it tho in my experience. ;-)

[rivaldo] 24/5/2012 15:34

Good to see 5k just bought at 157.83p, well above the 157p published offer price.

Chrisis33, you are absolutely correct about the excellent NAV backing for CMH. Have a read of my post 147 above for further confirmation.

[chrisis33] 24/5/2012 13:41

Can't say i know the company well, but fixed assets to the value of 2/3rds of the market cap is what convinced me to buy.

[interceptor2] 24/5/2012 13:18

chrisis33, Just checked and I believe you correct with property, plant & equipment valued at £8.1m, and market cap at £12m. Must admit it's not a ratio I normally look at though, so I take it that this ratio would be a good positive?

ic2...