Castings Share Discussion Threads

[essentialinvestor] 18/10/2010 08:09

Rise beginning as I thought

[d0ubtf1re] 17/10/2010 19:37

Bought in last week with a 300p short-term price target here for me, this looks a cracker & hot money currently flowing the sectors way. Re post 3 Essential it's also worth mentioning that there will be renewed pressure on the chinese to let the yuan rise especially in the new year with a likely more agressive Republican dominated congress.

[essentialinvestor] 16/10/2010 11:19

The Jaguar Landrover announcement yesterday may be highly significant for
Castings imv.

Jaguar will invest up to £5 Billion over the next 10 years
at their 3 UK manufacturing plants.

Their factories are right on Castings doorstep.

This could present Castings with the opportunity
to gain significant extra new work imo.

[on the up] 15/10/2010 15:31

DIVIDEND

While checking through the old RNS's I also took a note of last year's full dividend payment.

7.29

Very nice.

Interim divi payment - announced next month - have been as follows in preceeding years:

2004 - 2.44p
2005 - 2.53p
2006 - 2.58p
2007 - 2.71p
2008 - 2.71p
2009 - 2.71p

:->

OTU

[essentialinvestor] 15/10/2010 15:30

Yes, thanks again otu.

[on the up] 15/10/2010 15:27

I see some nibbles today so maybe warming up a little in any case. Hopefully the new thread will at least open eyes for some others who may have over looked CGS.

Talking of which - anyone else lurking out there?

Cheers, OTU

[on the up] 15/10/2010 15:24

EssentialInvestor - 15 Oct'10 - 13:44 - 5 of 6

CGS should annonce their November results date next week

EI - don't agree with you there. I would expect that date to be announced w/b 8 November with the Interim results scheduled for Thursday 25th November.

Previous dates give the clue:

2004 - Notice = 11 Nov, results 25th
2005 - """""""" 11 Nov, results 24th
2006 - """""""" 20 Nov, results 30th
2007 - """""""" 12 Nov, results 29th
2008 - """""""" 25 Nov, results 27th (the exception the rule - but that year was an exceptional one anyway!)
2009 - Notice = 17 Nov, results 26th.

Cheers, OTU

[essentialinvestor] 15/10/2010 14:29

Looking increasingly like a clear break out now.

[essentialinvestor] 15/10/2010 13:44

CGS should annonce their November results date next week.

[essentialinvestor] 15/10/2010 12:10

Another new high for Castings today.

[essentialinvestor] 14/10/2010 11:50

A great time to look at Castings imv.

Their Chinese competitors are suffering from rapidly rising wage costs,
20% year on year wage inflation in many cases, a trend that looks set
to continue for some time.

This has resulted is any Chinese price advantage being rapidly eroded.
Castings have consistently invested in the latest plant and machinery
to main their competitiveness.

Castings have stated that they will not be beaten on quality,
and have won back work that went to the Far East.

And quality is the other major factor in CGS's advantage.

Castings supply mainly to the Heavy Vehicle and Car manufactures.
The current strict forus on maximising quality, following some Industry
recalls, will drive increasing business in CGS's direction imo.

[on the up] 14/10/2010 11:30

EI - you're welcome, please make suggestions for the header as you see fit/as and when you wish to you.

Cheers, OTU

(Timing isn't always one of my strong points lol but the current chart is a part of my willingness to contribute here)

[essentialinvestor] 14/10/2010 11:27

Many thanks for the new thread.

Perfect timing, Chart breakout.

[on the up] 14/10/2010 11:23

Welcome to Castings PlcPlease take time to read the information in this header. All views expressed are personal and do not constitute advice unless otherwise stated.Click on the arrow to go straight to posts


Castings has caught my eye and since the previous BB has had just 49 posts in over eight years - and lacks charts etc - I've decided to establish this one.

I will develop this header over the next few days. Hopefully I won't be talking to myself by the time it's finished lol.

All suggestions welcome.

Cheers, OTU

WEBSITE

BROKER COMMENTARY



Acoustic-Electric Guitars

[essentialinvestor] 13/10/2010 11:09

Right on the 12 month high, breakout shortly imv with the Interim results
in a few weeks.

[essentialinvestor] 07/10/2010 15:56

WJ

Many thanks for the clarifaction.
I have long admired CGS, the first time I have held it.
The rock solid balance sheet and strong growth prospects attracted me.

They are famously conservative in their outlook,
so I fully expect the next update will suprise to the upside imo.

Great to see a UK based manufacturer taking on global
competition and delivering growth.

[wjccghcc] 07/10/2010 13:19

Capex fell sharply last year - it was 2008/9 that had the big spend so don't think you'll see much benefit there. Otherwise I agree.

[essentialinvestor] 07/10/2010 12:08

On the 12 month high.

Castings are in a sweet spot now in my view.

Chinese manufacturing costs are rapidly increasing, with labour costs averaging
20% year over year, rapidly eroding any price advantage.
And this trend looks set to continue for some time
The strong Euro is impacting the Eastern European companies in the same way.

Castings say that they win business on their supurb quality and have won
accounts back, that went to China.

CGS remains ultra competitive as they consistently invest in the latest
plant and technology.
80% of their product is exported.

The balance sheet is rock solid with a rapidly growing cash balance,
plus the yeild attraction.
Castings maintained their dividend even at the cycle low.

CGS has great gearing to recovery in its markets.

Having increased capex on a new Foundry and extra capacity over the last
two years, they are now set to rapidly reap the rewards of increasing
turnover, with capex now set to fall sharply.

Interims usually mid November, where I expect sharp upgrades.
The 2011 PER is under 11 when allowing for the net cash,
this is before likely sharp upgrades.

[essentialinvestor] 06/10/2010 10:41

Bought some this morning.

With the capex programme on the new foundry and machinery now largely complete, cash balances are likely to swell rapidly.

Castings had nearly £15 million in net cash at 31/03/2010,
this is likely to rise to £25 million + by the end of this Financial year.

Add to this the nearly £5 million pension surplus, and the great gearing
to recovery, where profitability also quickly increases.

Strip out the net cash and CGS sells on under 11x earnings,
this is before likely sharp upgrades at the November Interims.

There is also the attraction of a hefty 4.7% yeild.

Castings looks a Strong Buy at these levels imv.

[wcj] 16/2/2010 11:01

I do like the interim management statement - "Nothing much to say. Things still pretty tough, I suppose - well, what the hell would you expect? Now, bog off, and let me get on with running the company". Compared with the normal guff I find it very reassuring.

[the jackel] 04/7/2009 08:51

This share has jumped up the past couple of days! Any thoughts anyone?

[willybaby] 13/1/2009 16:54

What was todays rise all about?????

[loryd] 24/7/2008 13:07

Hi

The Annual Report throws a bit more light on the numbers with gross margin slightly better than last year and admin costs lower though they say that some of this is IAS accounting (510k of cash pension cost not recognised in p&l).

More generally it's clear that capex is going to remain highish but then Brian must see a good return. The Volvo truck results yesterday suggested slowdown to come (ditto Autos) but we know all that. I can't make the AGM which is a shame as I'd like to see the crazy man in action.

When you see the 5 year figures it reminds you that profit has doubled since 04 when the share price was around 170p.

[wipo1] 22/7/2008 17:05

Hi Loryd,

Things looking up a bit, director bought a few, 9% rise today, ex-dividend tomorrow. Hope it keeps up!