Chamberlin Share Discussion Threads

[kwackerh2] 13/10/2017 20:32

Demand for turbo housings is forecast to rise during each of the next 5 years. Fully electric cars wont be mainstream for at least another decade as the charging infrastructure wont be in place. Hybrid is the immediate future and every hybrid will have at least one turbo fitted.
CMH have a full order book and are looking at 30% increase in volumes next year together with the new machine shop contributing significantly to margins.
The operation will soon benefit from the massive investment seen recently as well as restructuring to focus on core activities.The future prospects for this business have never been better.
Maybe the negative dinosaurs on here will eat their words then :)

[my retirement fund] 07/10/2017 19:46

Technological change was at the back of my mind in my earlier posts.What I am suggesting is if the cannot turn a profit at the peak of turbo demand they dont have much hope as the market tails off in the coming years.Perhaps this is why the directors have no skin in the game.

[2realist] 07/10/2017 15:28

Restructuring is a solution not a risk except of course to current shareholders in an over valued company. It is inevitable that a restructuring should be planned to re position a group that’s over borrowed has a pension deficit has an overpaid board and a foundry business with long term structural problems. But the board who are not shareholders will kid you along as they get their reward through excessive remuneration.

[cockerhoop] 07/10/2017 15:15

It wasn't supposed to impress you 2realist it was intended to demostrate they aren't tight against any bank related pressure so the risk of restructuring is not current.

I'd agree technological change is the biggest threat Rhomboid.

[rhomboid] 07/10/2017 14:53

I think the biggest threat here is the pace of technology change leaving them exposed, electric vehicles in short don’t need turbos, I’d love to know how long it’ll be before this leaves them short of customers

[cockerhoop] 07/10/2017 14:23

Total committed bank facilities available to the Group at the year end was £10.6m (2016: £8.0m), of which £6.8m (2016: £3.2m) was drawn.

[2realist] 07/10/2017 10:44

Thank you Baner.
First sensible post about this company.
It needs massive restructuring and breaking up.
That won’t happen because the directors like being Plc directors.
Why ? Plc’s are removed from their shareholders so they can be paid far more than they would if the owners were Private Equity or any private owners.
So they’re not going to restructure it are they !
And they’ve got no investment of their own in the company because they know it is a basket case.
But being a Plc Director is a tick on the CV and a status thing with more cash than the company can afford and they deserve.

[baner] 06/10/2017 13:50

falling knife - to be avoided. needs financial restructuring = dilution. next stop 50p.

[kwackerh2] 05/10/2017 19:57

Chamberlin has suffered from years of poor management who ran it like a club for their mates and the current B.O.D has inherited that. The tide has turned and the years of stagnation have passed. The hard decisions like closing Leicester and setting up a state of the art machining facility cost money and significant investments such as hydride cleaning facility and melting plant investments have required major expenditure recently. Manufacturing industry in the UK has a rich heritage of famous names that are now housing estates or retail parks as a result of weak management with no vision or long term plan who took the rewards and gave little in return.
I agree that its been a poor stock to hold and I speak from experience. It used to provide a reasonable dividend but thats a distant memory now. I know the business and the industry well and I know CMH is now being driven forward at a rapid rate by people who have a CV thats as thick as a phone book instead of the old school tie brigade that paid a dividend because they had a shed load of shares and so did their mates.

[redartbmud] 05/10/2017 08:13

The current management is light years in front of the previous incumbents, whose strategy ran the business into the ground.
They have sorted out the production side, but the balance sheet does not make pretty reading. This does place a drag on the share price, and the ability to return to the dividend list in the near term.
The potential is there for a turn round. Look at the list of disclosable shareholdings.

[kwackerh2] 04/10/2017 22:13

Chamberlin makes 100,000 turbo housings a week for major suppliers to VAG and other euro car companies. Demand is increasing 30% next year and advance contracts are at similar levels for 5 years.
The long term demand for turbos continues for petrol and diesel with hybrid technology. Water cooled turbos running closer tollerances are the future and guess what , CMH are making them now and not many other suppliers can.

Zoolook is right that the business is worth more than £7m and at the current valuation
its ripe for a predator to takeover or join forces. :)

[coolen] 04/10/2017 22:13

Also worth noting My Retirement Fund's earlier comment on Castings plc.

[zoolook] 04/10/2017 07:59

If you are replying to me there's no point as you are filtered.

Don't feed the troll.

[my retirement fund] 03/10/2017 23:11

There growth storyline 15 years ago was all about turbos for small cars and how they had it made as by 2015 every small car was gonna need one.Well here we are approaching the dawn of 2018 and we are looking at the long term decline of diesel and petrol cars now and what did they achieve with that storyline? Nothing sweet FA. It was all a sprat to catch a mackerel and raise a load of cash by placing a shed load of equity to stay solvent.Womder what their next storyline will be?

[zoolook] 03/10/2017 22:58

Bought another slug today. However you look at it this business is worth more than £7m. I reckon that the share price decline is feeding further decline with weak holders getting spooked. Could be wrong.

[paleje] 03/10/2017 22:28

Sorry I spelled your name wrong kwackerh2 but one and the same and well said.

[kwackerh2] 03/10/2017 21:55

Sentiment determines the price of shares and thats whats happening here. No information or updates from the board and the price has gone from one extreme to the other.
Some real nonsense on here. A midget company with 35m turnover on 5 sites ?????
BOD overpaying themselves the same amount as most similar size companies. Name me a company anywhere where the BOD dont pay themselves well these days ! The best people in the industry dont work for peanuts and if you dont pay it they go elsewhere.
Too much debts means a couple of months turnover does it ???
Where is the rotten balance sheet in a business with record levels of output and massive investment in state of the art plant equipment used to manufacture world class products in niche markets with an order book increasing by 30% in the next 12 months and long term contracts already in place. Every C class Merc has turbo housings made by Chamberlin and lets face it the Germans are not fussy about who they deal with ?
Banks will soon be nervous. Dont make me laugh ! ! !
Get in when it bottoms out and before the bounce back :)

[my retirement fund] 03/10/2017 18:51

Castings seeing the stirings of problems

[paleje] 03/10/2017 11:29

Pity they don't inform the market, there isn't any regular coverage and people assume the worst, being very illiquid doesn't help.

But Quackers seems to know them from the inside, doesn't sound like a ramper and has posted a couple of useful insights. I can add, although its only a small part of the overall, I have a friend with an architectural hardware business and he says their emergency escape hardware is very good and often specified by architects.

We have to wait til next month to find out.

[baner] 03/10/2017 09:47

Again - falling knife! Rotten balance sheet, bloodsucking management/BOD overpaying themselves in this midget company, too much debts and the banks will soon be nervous unless they deliver significantly better EBIDTA. To be avoided - 50p next stop.

[fittster] 03/10/2017 09:30

Have to think there is some bad news known to those on the inside.

[tiswas] 02/10/2017 15:34

Something not right here although volume still next to nothing.