Chamberlin Share Discussion Threads

[arab3] 06/12/2019 10:33

How long have you been involved with this company Amrish?

[ak62] 06/12/2019 10:29

amrish - Thank you
am not an expert new to all this
only small amount in one stock and
don't have millions to invest being honest

[ak62] 06/12/2019 10:10

amrish-not ramping at all, some paid 52.80 earlier and
now offering around 48, hoping for a good entry point
every little helps

[amrishbhim] 06/12/2019 10:07

Ak62 you are funny, first you say 300% than you say once it's goes down you buy in, why don't you say nothing about what it going to than, I wonder why the other person stated you ramping

[glenbo1] 06/12/2019 10:06

ExactlyTurning it around.

[amrishbhim] 06/12/2019 10:05

The contracts news of 2 is excellent news, why can't everyone just be happy. Whether it hit 100% or 500% the only question should be that the company done well get two new contracts. Let's no ramp or deramp.

[ak62] 06/12/2019 10:04

Will do if drops bit more

thanks

[matunde24] 06/12/2019 09:56

Then u better jump in now mate... Still 200 percent to go

[ak62] 06/12/2019 09:51

Based on both contracts more to follow, not ramping -did stick a ? - not in this
was just a suggestion

[matunde24] 06/12/2019 09:50

Based on what... Or another ramper

[ppvn] 18/10/2019 13:02

So Milton have been letting go of some shares. They've seen cash outflows in 2019 so could that be the reason for this slide?

Risky strategy buying here given they've still got over 11% of these shares - but are they done for the moment (in which case these should bounce pretty strongly) - or will they sell more. Watch this space!

[ppvn] 15/10/2019 13:31

Call me mad but I've bought a few of these.

The company is priced for bankruptcy at this price having seen a very small amount of shares sold since the 60p days. If they have been able to restructure the foundries to put them on a sustainable footing in the past few months, with a possible resolution of the brexit saga this could see a bit of a jump from these levels imo.

As I say, only a small punt and perhaps with a rather binary outcome!

[kinwah] 30/5/2019 15:40

Disappointing trading statement but someone seems to have taken the 45,000 shares sold today. Hopefully someone will come along and make a bid for this company to end shareholders' suffering.

[2realist] 06/2/2019 08:48

Yes good stories from the Board to shareholders for several years but in reality they’ve had the strategy all wrong.
Dread the thought of how much cash has been pumped into the foundries in investment and turnaround.
And the expensive management are all foundry people as well.
A more rational strategy Would not to have bothered with the foundries - given them away to and with the overpaid management or closed them.
And kept and not sold the Exidor business which clearly didn’t demand the investment or the expense that the foundries did and will continue ........... classic amateur turnaround of selling the best and ending up with the unwanted unsaleable bits. Did used to think the property may have underwritten some value but a pity local knowledge seems to say not.

[baner] 06/2/2019 07:44

The cash is enough to pay the grossly overpaid BOD and management team - who gradually destroy what is left of this company. Terrible.

[2realist] 05/2/2019 16:59

Today’s announcement!
Market conditions and continuing losses means selling the better Exidor business really was to save a foundry that doesn’t seem to be able make a return.
New ( well not so new any more )management, Lots of investment, New contracts - but turnaround is elusive to say the least - question now is whether the cash from the sale is sufficient and will last until an upturn ?

[rhomboid] 24/12/2018 15:16

I looked at the site too..and reached the same conclusion...I really can’t think of any conceivable alternate use other than potentially a small supermarket or comparatively modestly priced housing

The underlying contracts would be of little interest to somebody if they cannot generate acceptable margins ...so it really is a case of mgt demonstrating that can be the case.

I’m on the sidelines having had a dabble here previously when things looked brighter

[2realist] 24/12/2018 12:07

Interesting but a bit of a dampener - so if Castings aren’t the natural buyer then it sounds like it’s only someone with an existing foundry, then with the removal costs etc etc. And without Castings is there anyone with a similar facility in U.K. who could make a return.
Suppose that takes me back to - why did they sell the better business and keep the foundry - seems like the answer is because the foundry is unsaleable and so that was the only way they could survive.
Now down to management to pump out returns like Castings, which is an outstanding promise from several years ago; or recruit and employ some good people from Castings to do it. As that’s the only route forward for shareholders.
From what’s said the residents around Chuckery would prefer a better environment to an old smokestack industry as well.
Sounds like a repeat of the manufacturing declines of the 80’s in the Midlands - but without a nice big site value from Tesco’s to bail out the values. Only Amazon but they won’t like or do anything on narrow roads !! More residential maybe ?

[redartbmud] 24/12/2018 11:45

2r

Knowing the management of both companies, I would be more than very surprised if Cgs ever expressed the remotest interest in Cmh.
The Cmh Chuckery foundry is land locked in what is now a now large housing estate and the issue of emissions is a constant source of angst. Just refer back to the spend a while ago. That site is probably not as valuable as one might think. Any purchaser would probably look to transfer business to their own foundry and sell the site. It would be ripe for housing, but there would be very significant decontamination cost involved. Furthermore, the houses immediately surrounding the site are of terraced Victorian construction and the streets are very narrow, by modern day standards. There are significant car parking issues.
How do you value that?

Just MHO.

[2realist] 24/12/2018 11:06

Danny. Just been looking at Castings Plc. They’ve been a strong performer and currently make 8pc and previously made more so maybe a lot more hope if management can meet Castings standards .

Think they’re more commercial vehicles and don’t know if returns are better here or even if they do turbos - but if hybrids will beat electric over the medium term and hybrids need 2x number of turbos there’s some growth to go for.
Maybe need Casting management if these guys don’t perform soon. They’ve been at it for long enough.
Castings financially could mop this up easily as you say Chairman goes out in a high - potentially an exit there if they can squeeze them like they did Assa Abloy!
Suppose question is whether Castings are in turbos and want to go into automotive - that I don’t know.

[danny baker] 24/12/2018 10:06

Good post 2realist. You're right but I do think there is a clear signal that CMH is being prepared for sale as a focused auto parts supplier. Turbochargers for small petrol engines is a relatively exciting part of the auto components industry. I've driven a few 1.2 TSI models and am hugely impressed by the performance. The pension deficit after receiving £2.5 million from the Exidor sale is down to £1.5 million. Once Walsall is making the £1-2 million a year that it should be then I expect a buyer for CMH will be found and the chairman can retire having done his job.

[2realist] 24/12/2018 08:30

Half year results confirm that they sold a valuable business to save a foundry which despite years of investment and management promises still isn’t delivering.

Can’t help wondering whether they shouldn’t have sold the foundries and kept the better business they sold to Assa for shareholders?

Either they really believe in the foundries v the one they sold - maybe but loss making foundries needing continual investment serving a declining automotive sector doesn’t appear to be an attractive sector.
Or they were able to sell the one they sold for a good price to Assa Abloy to satisfy the bank’s (?) but unable to sell the unattractive foundries.
So if the foundries are unsaleable it can only be because it really is a difficult business in a difficult sector that no one wants to sink their capital into.

Market Cap of 6.5m plus debt of 3.5m plus pension deficit of 1.5m but possibly 6 or 7m to buy out the deficit. All makes an Enterprise value of 11 to 18m.

So management will have to make 2 to 3m consistently to justify the current share valuation.
Possible.
But any slip ups mean shares decline.
Target would have to be to increase to profits of 4 to 6m to create any value.

Great if they can do it but quite a task.