Character Share Discussion Threads

[orange1] 18/7/2015 12:51

>buffybuffoon

Fido doesn't do humour, even when your post has a smiley at the end of it. ;-)

[fido] 18/7/2015 11:20

buffythebuffoon,
As I said before, my next target for the shares is £5.80.
Character are undervalued on UK sales alone and the £5.80 would have been a better valuation based on the improving UK economy and strengthening toy sales.
However if you factor in the potential of global sales then the £5.80 is no where near high enough. The market is still waiting for evidence of those world sales but the potential is very evident and if proven will see Character at a low multiple of where they are now.
There is also the possibility of a bid coming in from a bigger player.
Character have only just lost the services of Lord Birdwood and King is now winding down so given the potential of taking market share from the bigger players, this would be a good time to take the compayy out before that global potential is proven.
My guess is that the present directors will want to see at least a good part of that global potential being priced in before agreeing to sell but I do believe that a sale is on the cards further down the road at about the £12 plus mark.

[shauney2] 18/7/2015 10:37

Good to see all the positive news.

Trading statement is due in September.

[buffythebuffoon] 18/7/2015 10:13

So, Fido, is it the global sales that are potentially transformational for CCT? :-}

Buffy

[fido] 18/7/2015 10:05

mcartdon,
Reference the sell out of the minions, I did get a reply from Character saying that new supplies would be available shortly and to click on the product on their website to find out when they would be back in stock.
Overall we are seeing very strong demand for Characters products and that bodes very well indeed for global sales.

[mcartdon] 18/7/2015 07:41

With the very positive statements around the toy shows in Feb and the extreme situation where they are sold out if minions and now clangers in a week.
re orders strong, The august statement is going to be positive, t/o full year to Aug 31 looks to be strongly ahead of last year after the first half already and the follow on,
EPS of 55-65p a share with a stronger pound contributing, sharply raised dividends to avoid tax in budget likely.
A forward P/E of 12 isn't unreasonable, by Dec giving 6.50 to 7.50 target
so looking for 25% gain by Christmas. without re-rating for Teletubbies worldwide
which could push P/E towards 16.
don,t wait too long to buy.

[lauders] 18/7/2015 03:44

Probably correct gargleblaster but psychology comes into play and I am also waiting for a hopeful bounce in another holding before selling that a switching here! If a bounce in one occurs (chance it will shortly) and a dip occurs here I would be well chuffed with the timing LOL. I have rushed some buys before and regretted it so I just waiting a little longer with CCT. Probably will not work but there you go!

[gargleblaster] 18/7/2015 03:37

or nor even!

[gargleblaster] 18/7/2015 03:36

lauders - if you are buying long term then a dip is neither here not there!

[lauders] 18/7/2015 01:46

I am still waiting for a decent dip here to get in but CCT just isn't "playing ball"! Might have to bite the bullet and just buy based on the news flow that keeps appearing. Then it will probably dip.

[fido] 17/7/2015 18:09

If you wondered why the shareprice went up today then you should read the following article from a poster on iii but before you do then just remember that this article is refering to just UK sales when in fact it will be the global sales figures that will be so transformational to Character.

[fido] 15/7/2015 17:22

Sad though the passing of Lord Birdwood is, from an investment point of view it does increase the chances of a bid. Not that I would like to see a bid take place at these low levels.

Respect to Lord Birdwoods family in their hour of need!

[cfro] 15/7/2015 13:49

Nice assessment fido (post 12290), of which i strongly agree with.

[fido] 15/7/2015 12:17

interceptor2,
All historical data relates to the UK and very limited Europe & Australasian data.
With global sales now being ramped up this is in effect a whole new ball game and places Character into a higher league of earnings potential.

[interceptor2] 15/7/2015 12:07

Nice assessment fido.

You say that " potential will in time need to be proven by results" I wonder if the last set of interims results provide a guide of what we have to come?

They were very impressive with a headline EPS number at 35.66p, even when the £1.5m currency gain is deducted, EPS was still 29.93p. As far as I could see the results were very clean and improved to a net cash position from a net debt position yoy.

At the time of the interims on 30th April, I checked back at the historic difference between H1 and H2, since 2009 the ratio has been 52/48, so hardly any difference. In which case I have pencilled a full year EPS of 57.5p minimum, could easily be 60p imo. The share price is 470p which would mean a per of 7.8, this is rather cheap for a company which is very scalable and has so much potential.

[fido] 15/7/2015 10:04

stoxx67,
My opinion at the moment is given the global potential Character are very much undervalued. Investors are lucky in a way because the global roll out of Characters products will be progressive, allowing for more investors to come on board as the potential is realised and the share price to be backed up by bottom line figures.
As I have said for a long time now, investing in Character is all about your assesment of how well Character are going to perform on the global stage. If you think like me that they are going to do very well then the shares are very much undervalued.
Early indications do look promising though with Character even stating that they are taking market share from the big boys global sales (albeit from a low base), and they have made the right choices in DHX Media etc. On top of that they are becoming a licensor of first choice because of their success to date and that bodes well for future license wins.
All in all things are looking pretty good so far but that potential will in time need to be proven by results.
Our directors in Character see the market potential as "huge" and I see no reason to doubt that given their success and if they are right then the uplift in the shareprice should be equally impressive.
Plus as I keep saying, the more successful Character are on the world stage, the more likely they will get taken out by a bigger player which I personally feel will be the end result here with a takeout price around £12 a share, but that remains to be seen. For the moment I am happy with what I see as considerable upside to the share price

[stoxx67] 15/7/2015 06:17

concur fido..

its now very much a game of wait and see, investment requires patience and my SIPP is very patient indeed..

[fido] 14/7/2015 21:38

gargleblaster,
The answer to that question relies entirely on how global sales take off.
If Character repeat their UK success on a global scales then the results of that on the bottom line would see quite a rapid share price advance.
We should certainly find out within the next two years.

[gargleblaster] 14/7/2015 20:54

fido - double or treble over what time frame?? If they double over the next 10 years then that is a return of 7.2% p.a. - not bad but no cigar!

Double over 12 months - that would be a serious call - so are you gonna put "it" on the anvil and reveal your time frame???

[glaws2] 14/7/2015 16:07

Thanks Fido - that and Orange's post have clarified matters.

[fido] 14/7/2015 15:42

cfro,
In my opinion the potential for Character shares at the moment is at least to double and possibly treble so I continue to add at this level.

[cfro] 14/7/2015 15:36

I for one am still adding here. The market still fails to factor in CCT's full world wide potential imv.

[fido] 14/7/2015 15:16

Glaws2,
Character holds the worldwide license for the Teletubbies and others. It is therefore up to Character how they excercise that license and includes various partnerships like logistics and marketing etc.
Whatever way they go about it, the licensed products are still supplied by Character.
I hope that explains things a little better.

[squibno1] 14/7/2015 14:22

Orange1 - useful post thanks, following Glaws2 question.