Coral Products Share Discussion Threads

[tiswas] 29/4/2016 09:29

Anyone have access to any research on these people?

Interesting choice of brokers, Hume last year and now Daniel Stewart.

[clocktower] 27/4/2016 20:35

Sell it seems. "L"

[oldvic] 27/4/2016 20:19

300k buy or sell ?

[charo] 21/4/2016 19:07

Quietly doubled over 12 mnths eps up and if broker right more to come.sleeper.

[temelco] 09/3/2016 12:33

More trade on ISDX today that LSE

[clocktower] 08/3/2016 18:37

Volume moving the share price up again today, we could see it break out to reach new highs imo.

[charo] 22/2/2016 22:12

Need watch institutional holdings only sales are small traders or possibly ex family.
So long as div holds up institutional shareholders will stay and with no growth forecast in medium term for large caps interest will grow in growth plus value type stocks.

[clocktower] 22/2/2016 17:46

No offence taken. Still the pace of acquisitions is impressive - but Global One-Pak fit all?

Big volume for this stock and less than 5% movement.

[charo] 22/2/2016 14:37

sorry trouble with keyboard ,not too savvy with email culture,apologies if caused offence.

[clocktower] 22/2/2016 13:58

Sorry charo , not had time to read all info but just skimmed the RNS but why shout as though you are angry? :-)

I will take a in depth look in due course but just wanted to stress a bit of caution as the share price usually reacts before full consideration of all facts have been digested as you know.

Sales increases like Valhamos pointed out might be a cause for concern if it was due to orders like those that CRU received for totes that they are now in the process of fulfilling - will they be repeated? Will there be a drop in sales as buyers switch suppliers because they might have been upset by CRU in the past? Anyone's guess.

Still no rush to buy the stock at 23p so far.

[valhamos] 22/2/2016 13:35

charo - good point (though your CapsLock seems to have got stuck :))

GOP increased sales by 25% in 2014. Not sure why that is case for what is an overall stable market. But if anything like that growth is being maintained then the acquisition would look very cheap.

[charo] 22/2/2016 13:08

CLOCKTOWER THE ACCOUNTS FOR GOP DISCLOSE NO LONG TERM LEASE OR PROPERTY LIABILITY,NO PLANT AND EQUIPMENT .IT IS A DESIGN DEVELOPMENT AND MARKETING BUSINESS.A MODEL NOT DISSIMILAR TO INTERPACK IN PACKAGING AND DISTRIBUTION.ANY MANUFACTURING BUSINESS INDEED ANY BUSINESS EMPLOYING OPERATING ASSETS ,THE MAJORITY ,SHARE THE SAME RISK. WHAT VALUE ANY BUSINEES WHOSE ASSETS EARN NO REVENUE.UNDERUSED HOTELS,BARS THEATRES ,UNREAD MAGAZINE ,PAPERS.UNSOLD PROPERTIES AND ON AND ON.

[clocktower] 22/2/2016 12:49

Yes "EXPECTED" charo - we all expect but will it deliver?

As for machinery, while orders that are profitable roll in all well and good but machinery that is idle is near worthless and what value the site or lease of this new one going forward? We have seen problems in the past with CRU so you cannot rule them out occurring again.

Although the share price has risen there is not that much appetite for paying the premium. How long will it take to move another 10% if at all now?

This time I will wait for results and figures.

[charo] 22/2/2016 12:20

Clocktower the interims state the neimann lines fully installed and expected to contribute in second half.ROTALAC IS A SMALL STAND ALONE acquisition needing no input from group other than say some working capital.So no concerns on that.
As to tote orders if there were problems we would have been told as material.In terms of new contracts the last two took 18 months to secure and would be additional business for 2017 /8 IF THE LASTS WERE ANY GUIDE.
As to the price paid looking forward say 5 times earnings so at least a 60% uplift on the acquired business.Again the strategy is plain,acquire profitable businesses with management,at realistic p?e,lock them in for a period and gear up on opportunities from crossselling and introduction of new markets.
THE VENDORS OF INTERPACK AND TATRA as well as management still there.But hey nothing is certain.But for sure more certain than most issues of aim stocks,chinese frauds ,exploration b?s or so called first mover I T STOCKS.
SALES PROPERT MACHINERY PROFITS CASH AND DIVIDENDS ALL THERE.

[clocktower] 22/2/2016 11:55

charo - they have not yet fully proved they have all the recent additions and aspects of the business fully under control and providing without all these additions. They must have completed the first large tote order and well on the way to the second but we have not heard of any further large contracts being signed.

Also the sellers of this new business may wish to cash in once they have their Earn-Out stocks and if that was the case may at some point cut and run.

Is this stock worth 10/15% more than the issue price of the new stock?

[valhamos] 22/2/2016 11:21

It seems to be a good customer focussed acquisition at a reasonable price and increases EBITDA by over 25%.

[temelco] 22/2/2016 10:27

The overall strategy has to be right. This is a very fragmented industry with huge opportunities for consolidation and efficiencies

[charo] 22/2/2016 08:19

6 times earnings no working capital requirements cash generative earnings enhancing
New markets new customers continuing management with significant equity .What not to like.

[charo] 22/2/2016 08:18

6 times earnings no working capital requirements cash generative earnings enhancing
New markets new customers continuing management with significant equity .What not to like.

[clocktower] 22/2/2016 07:55

One to many imo - and although the placing was oversubscribed,I am of the view that the price paid in total with the Earn-Out will result in a falling share price once we see the next set of results and the total shares in issue exceed 82.5m

In addition I expect to see a few other holders with larger stakes taking profits on any upward movements, so growth prospects maybe limited imho.

Good Luck if your holding though.

[timbo003] 22/2/2016 07:17

I was offered the opportunity to participate in the placing and readily accepted after hearing brief details.

Interestingly I wasn't scaled back like some must have been (see RNS), although my application was only modest in size.

Unlike the previous placing last year, these will not qualify for EIS tax benefits as the rules were changed in November (due to new EU legislation) to exclude the use of EIS funds for acquisitions (thanks Brussels NOT!)

[temelco] 12/2/2016 18:22

Har har! Point taken Old Vic! Apologies!!!

[oldvic] 12/2/2016 18:03

I BLAME YOU TEMELCO !!!!!!!!!!!!!!!!!!!!!!!!!

[temelco] 11/2/2016 18:04

And still it doesn't go down.......The present situation is a perfect excuse for the MMs to drop the price, yet they haven't.

[temelco] 10/2/2016 19:08

Amidst the carnage,this is sticking up there quite well. There must be more to it than that £160,000 acquisition. The directors must be looking for something that would put the market cap beyond £20-25m which brings a whole new set of potential investors