Chamberlin Share Discussion Threads

[asagi] 28/11/2017 13:50

everything looked a lot better this time last year, Simon Templar QC. The contracts had been won but work had not commenced. As things stand, they simply cannot deliver the contracts on budget, due to, it seems, the manufacturing equipment not performing to spec.

Asagi (no position)

[simon templar qc] 28/11/2017 12:45

Wasn't this tipped earlier last year?

[arthur_lame_stocks] 28/11/2017 10:23

Awful results i can see these going broke now.

[gwr7] 28/11/2017 10:23

kwackerh2 22 Oct '17 - 16:13 - 624 of 627
"The figures dont make pleasant reading but all of the bad news is out and its factored into the current valuation."

[my retirement fund] 28/11/2017 09:06

Well they missed my predicted 3mill at 55p opportunity. I suspect it was down to ineptness rather than anything else.So perhaps 3mill at 30p could be do able? However anyone brave enough to subscribe to such a placing would probably want to see a sweep out of them.Infact this may be why we never saw a placing at 60p earlier, chances are they already sounded the market out and were told to step aside for more cash but have doggedly refused.Then again who would want to quit such handsomely paid positions?

[pugugly] 28/11/2017 08:28

to watch list at 60/65 down 23% but suspect a falling knife with further to go So in agreement with baner above.

[baner] 28/11/2017 07:59

As expected - new excuses and new disasters. This company is now very close to having drawn down all its credit lines - they are likely to be under severe pressure financially with no room for further mistake. Meanwhile the BOD and management team are very richly rewarded for sinking this company to the bottom of the sea. No doubt we should expect a £3-5m highly dilutive Placing soon. Anyone tempted? There is £13m of bank Loan and pension deficit to pay off before shareholders will see any money - while the BOD and management team take theirs before anyone else. Time for shareholders to take their responsibilities as owners serious and oust this team!

[kwackerh2] 22/10/2017 17:13

I am not from the companies pr and I wouldnt take a big position on this business. CMH is 3% of my portfolio although its been much higher in the past. I know this business and the industry it operates in very well and have done so for more than 30 years.
I believe that the current board are doing a lot of things right and making big calls that require significant finance. I agree that its been a rough ride for shareholders and hindsight is a wonderful thing. I should have departed at the recent highs and would certainly now be buying back at the current levels because I think it presents an opportunity but only time will tell.
The figures dont make pleasant reading but all of the bad news is out and its factored into the current valuation. I know that the startup issues with the new machine shop are being addressed and the rest of the group is making significant progress without the drain of the Leicester site which wasnt even close to being viable.
It would have been easy for the ceo to turn up and take the money and pay a dividend and talk a good job like the last one did. Instead he has made big changes that have cost money and have been long overdue and will secure the business long term.

[asagi] 19/10/2017 09:46

I'm a shareholder myself here also 2realist. I thought kwackerh2's post added some welcome balance. The contracts that the CEO went out and won should have been company changing. Hence the share price action of the last 12 months. But they have stumbled on delivery. So that jury is back out again.

Asagi (long CMH)

[2realist] 19/10/2017 08:58

Time will tell but whoever is the CEO the fundamentals are difficult, the company overgeared and borrowing more to climb out of the problem. And the pension deficit is massive - so the old share price you refer to didn’t look backed by fundamentals. Are you from the company’a PR?

[kwackerh2] 18/10/2017 21:48

The business has invested £5m in a state of the art machine shop and it hasnt hit the ground running leading to a delay in payback. The issues are being sorted and the fundamentals of this business are no different now to what they were six months ago when the share price was double its present level.
The directors are overpaid and thats the case in almost every business I look at and it seems to be the way of the world these days. The CEO inherited a business that had been run aground and was in a mess. The previous CEO paid dividends when the business was on its knees and his head was in the sand. Nolan has made big calls and done all of the right things to reposition the business for long term growth and expansion by logical progression into machining and investing heavily to secure a future for a business which didnt have one when he arrived.

[redartbmud] 18/10/2017 20:17

Not all, I know one with a declarable stake, who is as far from docile as is humanly possible.

[simon templar qc] 18/10/2017 19:36

"Take note" !

Action not words.

Seen it heard it all before worn that shirt etc. etc.

Shareholders like sheep docile creatures easily led.

[2realist] 18/10/2017 19:33

Agree with you that they need a placing/ fund raising and that the Pension is the real issue. Regrettably putting a lid on the pension liability is often 3x the balance sheet liability. So guessing maybe 15m or so. That’s why the trustees have a charge over all the companies. So pension plus the debt could be a 20m capital raising to have debt free Plc with a foundry plus some small engineering businesses. Difficult without a restructuring.

[2realist] 18/10/2017 19:28

Agree with you that they need a placing/ fund raising and that the Pension is the real issue. Regrettably putting a lid on the pension liability is often 3x the balance sheet liability. So guessing maybe 15m or so. That’s why the trustees have a charge over all the companies. So pension plus the debt could be a 20m capital raising to have debt free Plc with a foundry plus some small engineering businesses. Difficult without a restructuring.

[redartbmud] 18/10/2017 18:52

2r

Wish I was as happy as you appear to be.
Maybe I will keep my opinion to myself in future.
Ya pays ya money and ya takes ya chance.

hey ho...

[2realist] 18/10/2017 18:45

The CEO is 60 and on the basis of his only company directorship - stayed for 12 months - he has struck gold. At Wall Cholmondley a good consistently profitable private company where he was for a short while the highest paid director gets 125k versus his 300 plus!
Let’s all find a moribund Plc to employ us. Preferably with businesses so difficult there’s No expectations from .Beats investing any day. no wonder CEO doesn’t have any shares !!!’

[redartbmud] 18/10/2017 18:33

Don't shoot the messenger. I am on your side.
Le Grand Fromage didn't take long to move on the incumbent CEO after he had taken over. The FD removed himself. Given the state of the finances that he inherited, I suspect that he had to offer packages commensurate with the risk and the size of the job needed to put things right.
In my opinion they weren't far off bust at the time, and I bet that the bank had to be convinced to maintain it's support.
I also believe that the new team has done well to get this far. The customer wants semi-finished components that require a state of the art machine shop. It looks as though they have a quality issue to address. Again that does not surprise me, but they have to fix it fast:
a) For the customer.
b) To improve profitability.
There is little room for error.

The pension fund liability is disproportionate to the value of the business and will be a drag for a while yet.
Can they get away with a placing? That is cheaper than a full blown rights issue. Either way, arms need to be twisted and I am unsure they could pull off either without sensible profits to match turnover.

Just musings.

[davidosh] 18/10/2017 18:15

Lol....notes are easy. This company has a long history of overpaying directors and producing very little return for shareholders. The institutions just seem to sit back but of course it will be a tiny tiny part of any of their portfolios.

I have no holding but see this excessive remuneration all the time.....lower basic salaries based on market caps and bonuses up to 100% of salary but only in line with the actual shareholder returns each year would be my way.....why should directors get huge bonuses if shareholders are not getting dividends year after year ??

[redartbmud] 18/10/2017 17:59

david

He said that he would take note of the comment.

[simon templar qc] 18/10/2017 17:55

Unfortunately shareholder apathy allows directors to take advantage of shareholders however the law does allow shareholders to take action on an individual basis but its not easy and time consuming and highly stressful.

[davidosh] 18/10/2017 15:44

redartbmud.....What did the remuneration chairman say in answer to the shareholders question about it ? Even worse though if only a lone voice you can be sure they will do nothing. It needs a significant vote against....

[redartbmud] 18/10/2017 12:46

I was there and one of them did question the remuneration policy and voted against it.

[simon templar qc] 18/10/2017 11:47

This is the trouble with shareholders they are ready to grumble but take little positive action.