"if your not receiving a dividend what are you getting out of your holding" .. about a 300% capital gain so far (about 400% last time).. but I believe you got nothing... atb :) |
Nope - words mean nothing, results mean everything... |
So i take it that you have not read the broker's note ?
And as a matter of interest did you watch the Investor Meet presentation ? |
.Brokers notes taken with pinch of salt, all part of the cozy financial institutions club...Believe them if you like...if your not receiving a dividend what are you getting out of your holding...Likelihood of a dividend on these paper thin profits is never. |
I wonder if beeezzz has read the Panmure note that came out on Thursday along with the results. |
I notice rebel doesn't mention his other favorite share which he piled into couple of years ago Xaar....wonder why...
Wig - Just because your in love with carclo doesn't mean the market is, wider world issues are at play here.. |
I think CR was deep into this - has he changed his mind? |
Your points are as misleading now as they were when the shares were below 10p. I very much hope nobody acted on your negativity back then, though you evidently have little regret about it. I could answer your point - as I did earlier - but you would just move on to some other negative. Meh.. |
That's all well a good, shame the large medtech companies are not willing to pay more for Carclo medical products.....
Turnover is irrelevant profit is king, when Carclo are making less than 3% profit, any interruptions results will be negative...
Take a look at Income statement profits have halved from £7m to £3.3m. |
Sorry but anyone who believes the business can easily be taken elsewhere is simply naive. First,, the cost of producing the item is typically small in relation to the end selling price of the final product. The key therefore isn't cost, it is reliability of product and distribution. Second, the customer often makes joint investment in the machinery - they have sunk investment. Third, these are not simple things to produce in high volume - it requires expertise and often a close relationship between the research entity and manufacturer. Carclo is trusted by many of the largest medtech companies in the world, precisely because they have a reputation for these things. Interesting to note the people who invested in this company for years, but really have little clue about it. I would guess listening to the webcast they have a good chance of sealing more large contracts - but knowing that requires listening to the webcast! GLA |
Removing tooling and just placing it in a new business never works. So often tacit knowledge is required to ensure the tools work, plus they can be quite specific for a process or machine. So whilst lifting and shifting tools on paper is great, in practice it doesn't work from my past experience. |
Blimey, what a bunch of Eeyores - no wonder our stock market is so cheap. Apparently none of our companies can ever prosper doing anything! |
One thing that must be realised Carclo are in a very competitive market place where margins are going to be continually squeezed.
I'm not sure who owns the tooling whether Carclo or clients, if clients which means they can easily take their business elsewhere. |
Not yet. Normally just before 5 |
Looks like it may have prompted a few sellers. The Stocko writer does admit to being a tad harsh. |
Disappointing write up on stockopedia. Cheap for good reason, but who knows. Not one to chase I would argue on a CR spike . |
Fair points. However, I'm pretty sure the CFO said in the Q&A that interest costs would increase on the refinancing. Worth checking the webinar again. |
One more point - the gap between the accounting deficit and the actuarial deficit is around £45m, mainly driven by the uncertainty between what is considered a fair estimate of the deficit and what is considered a conservative estimate of the deficit (that's around 60p a share). The faster it is paid off, the quicker that uncertainty disappears. Given the growing nature of the sector and low cyclicality, an enterprise value of 1.2x sales wouldn't surprise me here. That's around £145m. You can play around with the deficit within that valuation and the stock always looks undervalued (also remember to take off the circa £27m debt). One should also note that the latest pension review is likely to use a materially higher discount rate, so we should see further reduction to the actuarial deficit. |
WJC - fair points. But 1) I didn't get the impression that interest costs would rise, from memory it was more resistance to the suggestion they would fall. 2) bear in mind the reason the market cap is so low is because the pension deficit is valued like debt by the market. So any faster repayment of the deficit should simply result in a transfer of value toward equity holders. One also needs to consider the current cost of the refinancing which has burdened recent cash flow, and that they are looking for ways to reduce the pension admin costs, which are material. I also thought it was interesting that we have seen consolidation within the sector, and that listing costs remain a key factor for Carclo. It wouldn't surprise me to see corporate interest at some point. ATB |
Pension deficit will almost certainly improve but they're currently on a 15 year schedule of repair payments and on the webinar they said the trustees were keen to move to a 10 year schedule so payments will actually increase. |
Pension revaluation due in Spring, that will improve position and make future payments easier? |
The thing that concerned me from the IMC webinar was likely increased interest costs from the refinancing, likely increased pension payments as the trustees push for a 10 year timeframe to repair it as opposed to the 15 years currently, and the capex squeeze which can't go on for ever. The underlying business is progressing well but cash is going to be tight with these increased payments. |
Facts are better than dreams! GLA |
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