Carclo Share Discussion Threads

[rivaldo] 08/5/2017 16:07

Continuing to rise, with a flurry of AT trade buys at 150p this afternoon.

[hopeful holder] 06/5/2017 10:18

Hope so gleach. Showing a slight paper profit for the first time in over a year.

[gleach23] 05/5/2017 22:15

Encouraging close with a UT @ 148.75...hopefully a platform for a foray into the 150s next week?

[rivaldo] 02/5/2017 15:22

Good to see more institutional (AT trade) buying slowly coming in and forcing the price up again.

[1gw] 28/4/2017 10:18

Bought some more here. Hoping the force is now with this one.

[rivaldo] 27/4/2017 11:22

It's worth noting that almost a third of CAR's revenues are generated in North America, and CAR's tax rate at 23.7% is quite a bit higher than UK rates as significant profits are generated there.

So Trump's overnight announcement that US corporate tax should be cut from 35% to 15% would be a big boost to CAR. He faces some opposition in getting it through, but it would certainly represent a material windfall to CAR.

[rivaldo] 27/4/2017 09:46

Yep, new recent highs now - hopefully upwards and onwards to 160p now for starters.

[gleach23] 26/4/2017 16:52

Looks like a breakout on the chart...let's hope it can maintain it this time!

[rivaldo] 26/4/2017 14:41

Nice - a £268,000 buy at 143p just reported...

[rivaldo] 26/4/2017 11:14

Good to see buying at above 141p now.

[rivaldo] 25/4/2017 08:54

CAR have just been tipped here - interesting to see the 2018/19 forecast of 15.65p EPS now coming into play:



"2 smart things you could do with £1,000 right now
By The Motley Fool 24 Apr 2017, 16:34

Technical plastic products supplier Carclo(LSE: CAR) issued a trading update earlier this month, with the group delivering good growth after an anticipated strong second-half performance. Preliminary results for the year ended 31 March won't be officially released until 6 June, but here's why I think this could be a great small-cap stock to tuck away for the long term.

Premium car market

The West Yorkshire-based business is the leading global manufacturer of fine tolerance parts for the Medical, Industrial, Aerospace, and Luxury & Supercar Lighting markets. Approximately three fifths of group revenues are generated from the supply of fine tolerance, injection-moulded plastic components, primarily for medical products. The rest is derived mainly from the design and supply of specialised injection-moulded LED-based lighting systems to the premium car market.

The small-cap firm's latest update confirmed that its Technical Plastics division had delivered yet another year of growth and operating margin improvement, with margins expected to be close to its 10% target. The LED division's Wipac business has continued to win new lighting programmes and has been awarded a second mid-volume project on a vehicle for the hybrid market. The win is important for the division as it endorses the company's strategy to move into the mid-volume sector.

Attractive valuation

Carclo's performance has been impressive in recent years, with revenues rising year-on-year from £87m in FY 2013, to £119m for FY 2016. According to our friends in the City, this figure is expected to rise by 19% for the financial year just ended to £142m, and by a further 11% to £157m by fiscal 2019. The group has also achieved strong levels of growth in underlying earnings, rising by a massive 94% from just 6.2p per share in FY 2013 to last year's reported figure of 10.1p per share.

Analysts' consensus forecasts suggest that earnings should continue to grow at a healthy rate, rising by a further 55% by FY 2019 to 15.65p per share. This leaves the shares trading on a very attractive valuation of just 11 times earnings for the year to March 2018, dropping to just nine times by FY 2019. I currently view Carclo as a buy for growth hunters who don't mind taking on a higher degree of risk at the small-cap end of the market."

[rivaldo] 20/4/2017 14:13

Nice £327,000 buy at 137.63p just reported, presumably from earlier today with the share price moving up as a result.

[1gw] 14/4/2017 15:20

Update on corporate bond yields and pension situation.

Barnett Waddingham have published their latest quarterly assessment. This shows corporate bond yields have fallen back again since 31st December, from 2.7% at 31st Dec to 2.5% at 31st March (ML UK AA corporates, 15-year), meaning higher liabilities for pension schemes compared to 31st December, but still lower than at 30th September (when the same bond yield was 2.3%).

They do however comment that this higher liability vs 31st December:
"...is likely to have been offset by investment returns over Q1 2017, particularly for those schemes heavily invested in equities."

According to Carclo's annual report, the vast majority of pension scheme assets were in "diversified growth funds" at 31st March 2016.

So perhaps we can hope the deficit position has not got significantly worse during the last quarter (and is considerably better than when they warned on the dividend).

[rivaldo] 13/4/2017 11:12

New Edison note - they go for 13.1p EPS for the current year (and 11.6p EPS for the year just ended), with a valuation range of between 153p-162p:

[rivaldo] 12/4/2017 16:08

Good spot - the share price has moved up subsequently so that may well be the case.

[gleach23] 12/4/2017 15:44

Be nice if the 2m trade that just went through was a clearance of an overhang

[abergele] 11/4/2017 19:44

Exactly Queenie,,
The chart still has us above the 250 dma and all lower ones..gla

[queeny2] 11/4/2017 15:57

'What does it take to please some people?' :)

[gleach23] 11/4/2017 15:48

Thanks p1nkfish - yes I have seen such transfers recently with BILN and STY

[p1nkfish] 11/4/2017 15:37

Lombard Odier may have taken Henderson stock. Volantis personnel moving to LO as division sold.

[gleach23] 11/4/2017 15:18

You're right wageslave - must admit, I missed that last one!

Only last November they went from holding 5.4m to 7.9m, to 9.5m in Mar but then reduced as you say last week to 7.2m.

Difficult then to comprehend their strategy...but still hoping they add. Wider point is that we need Institutional support, given all positive analyst coverage.

[wageslave] 11/4/2017 13:52

Weren't Henderson reducing in the last RNS?

[gleach23] 11/4/2017 12:13

Hopefully Henderson Group will continue to add to help us reach a new trading range.

Judging from today's trades it seems that PI selling is keeping a lid on the share price - hopefully just traders who were waiting for the update.

[rivaldo] 11/4/2017 11:41

Peel Hunt reiterate their Buy and 190p target today.

Looking nice and solid now.

[illiswilgig] 11/4/2017 10:05

Boadicea - You stold my thunder!

Yes, very pleased to see the 10% margin statement from CTP.

Most of CTP's manufacturing is abroad. That has the effect of increasing the repatriated profits with devalued sterling - but I don't see it being as big an effect upon margin with sales in USD and costs not in sterling?

What does it take to please some people?

In my case, all this growth is all very well but some reduction in net debt, increase in free cashflow and reduction in pension deficit would not be too much to ask?

cheers

Illiswilgig