Chamberlin Share Discussion Threads

[tiswas] 29/6/2017 16:18

Well I am glad I am not going mad!

It will be interesting to hear if you find out the reason, big difference!

[rhomboid] 29/6/2017 16:01

Hmm the research tree version is different to the Hardman website one, it's a material difference so I'll query it

[rivaldo] 29/6/2017 15:54

Just looked on Hardman's web site and they're using this report, which does indeed show 23,4p underlying EPS and a statutory 13.4p, though it doesn't explain the difference:



I assume the difference is the usual pension service cost, share-based payment charges etc.

[rhomboid] 29/6/2017 15:02

My copy is the same as Rivaldo's so not sure how you're getting something different Tiswas🤔

[tiswas] 29/6/2017 14:51

Hi Rivaldo

I thought I was looking at the same as you! Hardman report 23/5/17

On-track; Turbo-charging into a new growth phase

Underlying EPS (p)
1.5 4.5 19.5 23.4
Statutory EPS (p)
-4.4 -12.2 9.5 13.4

[rivaldo] 29/6/2017 12:48

The report I have dated 23rd May shows 24.6p core underlying EPS to March'19, with 20.2p statutory EPS, so I can't see where you get your figures from tiswas.

[tiswas] 28/6/2017 14:17

Why the 10p difference in underlying and statutory eps for 18/19 in the Hardman report. Is it just the pension contributions? Can not see it explained.

[croasdalelfc] 14/6/2017 16:58

Maybe today's events in London might mean opportunities for Exidor ?

[rivaldo] 14/6/2017 15:11

Interesting to see 4 buys in the space of a 1/2 hour just now for this usually quiet stock. Perhaps tipped somewhere?

[rivaldo] 12/6/2017 09:11

The June edition of Master Investor magazine out this weekend (p.40) tips CMH as one of three AIM companies to grow from "Acorns to oak trees"....



Extract:

"Valuation

Shares in Chamberlin have more than trebled since last year's lows of 50.5p and at the current price of 152.5p per share the company is valued at £12.14 million. That values the business on a multiple of just 7.8 times earnings forecasts
for the year to March 2018 from analysts at Hardman. The multiple falls to 6.5 times for 2019, although there is no dividend expected in either year.

While the valuation remains relatively low here the balance sheet is not as strong as some investors might like. The net debt position as at end March 2017 was £6.8 million, up from £3.2 million 12 months earlier, mainly as a result of investing in the new machining facility. In addition, there is a pension deficit of £5.2 million to contend with, with the company making an annual deficit reduction contribution of c.£0.3 million. Nevertheless, these contributions are easily funded out of operating income and interest payments on borrowings were covered a comfortable 4.6 times by operating profits in the last financial year.

As a good value recovery play, Chamberlin shares look like a longterm
buy and hold."

[rivaldo] 05/6/2017 07:32

RNS - Thomas Charlton has gone above 3% with 242,500 shares:



It's worth noting who exactly he is....



"Mr Thomas William George Charlton, also known as Tom, MA served as Managing Director of Merrill Lynch Investment Managers from 1998 to August 2002. Mr. Charlton has in-depth investment knowledge together with broad experience and interest in the smaller companies sector.

etc"

Hastings, looking forward to your write-up.

[hastings] 30/5/2017 09:18

Also spoke with management again last week.Currently working on a write up and feeling increasingly bullish despite the great run.

[rivaldo] 30/5/2017 08:29

Very positive article on Share Prophets this weekend - here's an interesting excerpt:



"However, talking to management, they emphasised the noted investment is underpinned by orders and that there is thus strong confidence in the profitable growth and debt support going forward. This is also with now Walsall “one of only four specialist foundries in Europe with the technical capability of supplying castings for turbochargers and, with our new machining capability, the foundry is now the only fully integrated supplier of grey iron bearing housings in Europe”.

Although there will be continued elevated capex at Walsall this year, the impact of the new facility is also visible in profit forecasts – with a pre-tax circa £2 million still anticipated."

[rivaldo] 26/5/2017 15:45

Glad I picked up a few more :o))

[rhomboid] 24/5/2017 13:10

Did anyone get to the presentation in London? I'd be very interested in any feedback , thank you!

[rivaldo] 24/5/2017 12:46

Here's another source for Hardman's report yesterday - this also quotes 19.4p EPS this year and 23.4p EPS next year.

I can only assume that Hardman reissued the report later with slightly amended figures.



"Valuation: The shares remain attractively valued, trading on calendar 2017 EV/sales and EV/EBITDA of 0.5 and 6.1 times respectively, compared with sector averages of 1.1 and 8.7 times respectively. Our DCF valuation, using a WACC of 10% suggests that the shares remain undervalued with a fair value estimated at over 200p.

Investment summary: Chamberlin Plc is repositioning itself from a traditional engineering company to become a key supplier to the automotive turbocharger sector. The shares offer the opportunity to invest in a cyclical stock with high operational leverage. The risk/reward profile remains favourable and the shares remain attractively valued against its peer group and on a DCF basis."

[rivaldo] 23/5/2017 21:53

Hardman's forecast of 20.1p EPS this year came from here (I assume you have to be a Research Tree member as I am to access it?), with 24.6p EPS next year:

[zoolook] 23/5/2017 17:15

Rivaldo not sure where you got 20.1p The underlying EPS estimate is currently 19.5p for 2018 which is virtually unchanged from 19.4p in March. 2019 estimate is down slightly from 23.9 to 23.4p.

They said the results are in line with expectations but their March estimate for this year was 12.8p yet now 4.5p which must count as a miss.

Link to latest Hardman report here: hxxp://hardmanandco.com/docs/default-source/company-docs/chamberlin-plc-documents/chamberlin-final-results-23rd-may-2017.pdf

Link to March report here: hxxp://hardmanandco.com/docs/default-source/company-docs/chamberlin-plc-documents/chamberlin-final-results-23rd-may-2017.pdf

I have probably got the wrong end of the stick - wouldn't be the first time.

ps MRF so much for filtering me. Typical

[croasdalelfc] 23/5/2017 15:33

Rivaldo - nice to see you here!I nearly bailed this morning for a 15% profit but glad I held on . Only a small holding but could easily double in a year or so

[rivaldo] 23/5/2017 11:32

Bought some of these on the dip today.

Hardman have now increased their forecast to 20.1p EPS this year. They're not normally ones to over-egg things (though there's always the exception!).

Above all, CMH is obviously a company on the up. Good to see the other two subsidiaries doing well too, but the core turbocharging division is only going to get better and better, especially given the favourable regulatory environment supporting its growth.

And the pound's weakness will also help drive sales and further enquiries in making CMH's products that much cheaper to its prospective customers.

[zoolook] 23/5/2017 10:31

My Retirement Fund Mark 2

[hastings] 23/5/2017 09:40

It's the 2018 numbers and beyond that has lifted the shares and that hasn't changed.Holding.