Chapelthorpe Share Discussion Threads

[masurenguy] 03/3/2007 17:47

Welcome tuftymatt - interesting article first posted by zhangzl on the old CPL board yesterday.

[tuftymatt] 03/3/2007 16:59

Nice the see a new thread for one of my favourite ever shares........Back in June 04

What ever happened to Fanta anyway??

[masurenguy] 03/3/2007 16:00

Never invested here - thread relinquished in August 2008

[kingdwg] 28/2/2007 09:23

Well done zhang. Lots of my trades here never show, don't know why!

[maxlenton] 14/2/2007 22:38

Hi Kingdwg was beginning to feel a bit like the lone holder managed to get 4.75. There is definately not a stock overhang, never seen a price move by 8% on my £1000 buy and its still holding up have been buying at 4.5 - 4.75 over the last couple of months.

Can't help but think things aren't really that bad, the company that has gone bust represents 25% of the turnover of the specialist coatings division which in turn accounts for aprox 20% of the companies turnover, thus equating to a 5% drop in revenue aprox 2.5m of a 50m+ turnover.

They have already completed restructuring of the fibres buisiness with turnover up although margins down due to high oil cost (now $56 a barrel down from $75) so material costs should have lowered so hopefully a bit more profit there. Although the US automobile industry is going through bad times they are managing to offset this loss in revenue with new areas of business.

The umberella frames buisness now the premises have been changed should be up for sale hopefully a bit of money from this. Even if they decided to sell the specialist coating division aswell which maybe in their restructuring contingency they are still left with a 43m turnover company with one focused division.

They must be able to make some money from this and by selling the other divisions repay bank debt.


Fingers Crossed

[kingdwg] 14/2/2007 08:42

Hi max

I bought in yesterday morning as well, not a large amount but I got 4.65 and moved the price. The trade was not listed on ADVFN.

[maxlenton] 14/2/2007 00:47

Well I've bought worth a punt at least they are actually doing what they said they would which is more than most companies do :0)

[felix99] 13/2/2007 17:27

Just be a while in realising the vlaue of the property . Probably dead money for a bit

[kingdwg] 13/2/2007 08:18

The completion of the land sale didn't exactly set them alight then. In fact they've gone in the opposite direction! Must be a really dead duck?

[parieur] 12/2/2007 17:31

I see the old Sirdar building has just been demolished.
They didn't still own that, did they?

le P

[timbo003] 12/2/2007 17:26

I suspect this explains the tick up today, profit warnings tend to come in threes, and we had three of them, things maybe looking up

[aussiedonnie] 24/1/2007 19:19

Hi, anyone think CPL is good value at 4.75p

[kingdwg] 18/1/2007 11:37

AXA unloading!

[balcony] 16/1/2007 14:22

Large lines of stock on the move.

[maxlenton] 20/12/2006 22:24

Sorry Arthur you are totally correct, I have somehow got my notes mixed up the sucess story I was thinking of was Wlaker Greenbank plc specialist wall coverings and fabrics.

PG takes stake March 2003 share price at rock bottom 6p PG appointed to the board march 2003 resigns from the board 8 months later after stearing path of restructure share price at end of 2003 16p today shareprice 48p.

Similar turnover and property disposal program to the wall coverings division of CPL not convinced that this division is dead although the brollies should go.

If the wallcoverings division is sold WG could be a possible suitor, I understand PG has a habit of trying to sell his company interests between others

Sorry for the confussion.

DYOR

[arthur_lame_stocks] 20/12/2006 11:08

"It maybe a coincidence but PG has recently taken European Colour through a successful restructuring and subsequently they have been sold to Pochtea. The reason I mention this is that EC have similar specialist coatings products dealing with pigments for silk screen printing a mino in comparison to CPL but parallels can be drawn between the trading difficulties with regards to raw materials and capital costs etc."

Max

With all due respect you´ve got European Colour completely wrong. The shareholders, including Peter Gyllenhammar, were totally screwed by the largest shareholder Steve Smith who took the company private for next to nothing. It is still loss making as far as we all know and nobody except perhaps Steve Smith can claim it had a happy ending. If you can find anybody that made money out of the "successful restructuring" let me know. Go and look at the EUC thread over here if you don´t believe me.

Although CPL has historically turned over 120m it looks like they are going to sell everything bar the fibres business which will take them down to about 80m.

This could prove cheap if they can restructure successfully, but I don´t think there´s going to be much good news coming out of the company in 2007.

[maxlenton] 20/12/2006 09:42

Rohkap - Ok so they haven't had a major customer go bust on them in recent years but other than that yes. Back in 2002 there wasn't a month that went by without a profit warning and the only reason the share price didn't collapse to begin with was that there were constant rumours of an MBO that never materialised, the share price shortly after a disasterous year went to 5p.

Why am I investing

NAV is 2.5 the current share price, they have a turnover of 120 million and have maintained this for a number of years its not a flash in the pan. With ruthless restructuring, profitability is achievable especially with 120m turnover to work with. Previously this has been unsucessful because of management but I believe with PG on board this will change, he doesn't take stakes in companies that he can't have influence over.

It maybe a coincidence but PG has recently taken European Colour through a successful restructuring and subsequently they have been sold to Pochtea. The reason I mention this is that EC have similar specialist coatings products dealing with pigments for silk screen printing a mino in comparison to CPL but parallels can be drawn between the trading difficulties with regards to raw materials and capital costs etc.

I realise its a gamble and not one for the fain hearted but I feel pretty positive, if PG hadn't invested I would not be so positive as I don't think the mangement as they currently stand can pull it off.

It will be interesting in the coming months to see if PG takes a place on the board, which wouldn't be unusual! Or takes a more agressive stance to make a return on his capital either way I'm it at the same price so I guess I'm hoping this sweed does better than Sven Yoran Erikson :)

DYOR

[rohkap] 19/12/2006 21:52

maxlenton-have things been this bad before though? As it stands, even with the property disposal proceeds the company is going to be left with at least £10mmm net debt at year end not to mention numerous operating lease commitments (quasi debt) plus 2 loss-making businesses and 1 thats barely profitable. I'm trying not to be too negative, but finding it difficult to see light at the end of the tunnel!

[maxlenton] 19/12/2006 10:11

I don't believe that the Peter Gyllenhammar and Calyon Corporate buys are a coincidence, I last bought CPL a few years ago at 5p and was rewarded 4 fold, its an old boring company that has weathered quite a few storms with internal management, with the external influence of PG I'm hoping that it will be a swift turn around or an assett strip play target price 12p+ by this time next year.

DYOR

[arthur_lame_stocks] 18/12/2006 17:17

Well the French appear to like something about CPL. There´s been quite big volume again today so there could be more RNS´s to follow.

The price has recovered a bit too.

[arthur_lame_stocks] 16/12/2006 11:50

Well 6% is still significant. But 25% of that SC division´s turnover is a hell of a lot. They´re going to have fixed costs that they will have to slash, excess capacity so probably fixed assets that will end up getting written down (will they have much resale value) and so on.

The problem as I see it is that two of their divisions are now of dubious value, i´m not convinced that the brollies business is going to be worth much and the core part, fibres isn´t performing particularly strongly.

Of course they´ve got other freehold properties they may be able to sell and there maybe some value to be squeezed out this way but it´s hard to call them cheap, even at this price when things just get worse and worse as time goes on.

IMO

[mr_x_uk] 16/12/2006 11:36

Arthur, indeed. As I'm on an average price of ~12p just now I think it's safe to say I'll be tied up for a bit of time...

Doesn't this lost supplier only account for about 6% of the turnover of one subsidiary of Chapelthorpe? A further decrease of over 20% on the basis of an issue we were already aware of (the likely loss of Premier Decorative Products as a customer) seems a bit of an overreaction and the market price just now seems a bit understated.

At least that's what I hope!