Coral Products Share Discussion Threads

[effortless cool] 16/4/2024 17:14

Last year, they did a year-end (30 April) trading update on 24 May. They did similar in previous years, so I would expect it again this year in late-May, early-June.

[markth126] 16/4/2024 17:11

When do we expect next update, could do with some decent news?

[clocktower] 11/4/2024 09:36

With the market as it is markth126 it seems to me folks are just pulling out of all sorts of AIM stocks, even if they are well managed with honest directors like Joe G. Not many funds investing either, in fact they also seem to be pulling out in some sectors.

The slightest whiff of bad news and slowly they slide but wisely people use stop losses, which of course does impact even good companies like CRU.

That said, JG does seem to keep repeating the same mistakes, and hopefully the latest appointment is not another error of judgement. The new CEO buying has not proved to show good judgement either at present, as he purchase 215,000 at 13.95p so he already around £10k down, 30%.

I doubt I will get back to be able to buy loads at under 5/6p again but who knows, if news gets worse.

Good Luck.

[markth126] 10/4/2024 15:26

Thought there would be have been more buying down here. Seems excellent value to my mind still with plenty of upside

[clocktower] 05/4/2024 14:56

Good luck markth126 but it seems it is still falling but that could turn in a flash if they can start to provide better trading updates.

I am tempted now but the new CEO has not seemed concerned about investor confidence, which I find troubling, so I will wait for news before buying a few again.

[markth126] 28/3/2024 13:21

Back in here as seems like decent value at this level to me.

[clocktower] 25/3/2024 16:27

The new CEO doing it his way may hit pockets of stock holders and that includes those that sold their businesses in a part share deal - they are now out of pocket if they sold I guess, so will not be happy bunnies, plus it is more likely to fall as an election year with all signs again the current government, it is not a good outlook at present,for a company whose sales revenue are in question.

[valuschmalu] 21/3/2024 21:30

There is the risk of a power struggle given JG's significant shareholding but hopefully the new CEO made it clear on his appointment that he was going to do it his way and that JG agreed with that approach and will let him get on with it. We'll soon find out I guess

[charo] 21/3/2024 18:00

11th Dec 23 JG warned of difficult trading conditions.26th Jan 24 new CEO took advantage of opportunity to cancel div and reduced expectations,whilst expressing confidence in future.
In Feb 24 confirmed UK was in recession last quarter of 2023.A slew of profit warnings ensued.
JG, as before,was on the button.
Expect a better outcome than many expect.

[eezymunny] 21/3/2024 16:31

"EezyMunny - 07 Sep 2022 - 07:13:47 - 3139 of 3554 Coral - not the turf account - but on a good run. - CRU
For my liking they sound too keen to make acquisitions of pretty ordinary companies. A recession may be coming.

Time will tell. Personally I would've sat on the cash until some bargains came along..."

Such foresight :)

Proper empire building nonsense IMO...nearly always ends the same way.

[clocktower] 21/3/2024 15:44

He will need to pull more than a bunny from the hat, if it is to recover to even 16p.

With JG it's always a roller coaster.

Maybe there will be a power struggle before long.

[lombriz] 12/3/2024 15:11

The share price drifting down to where it was after the profit warning doesn’t bode anything really, because it has nothing to do with actual performance or anything specific, such as the costs you mention.

No, it’s just general anxiety in the market over how things are actually turning out. This is despite the positive message sent by the CEO with his chunky purchase shortly after the RNS. Time for a top-up?

[clocktower] 12/3/2024 09:43

Share price still sliding does not bode well.

It was also a year ago that properties were remortgaged, which increased available cash. Did JG expect interest rates to fall and are the repayments now dragging the availability of resources down?

Are the reorganisation costs eating away at profits?


Maybe the new CEO will provide an update sooner than we would normally expect, as uncertainty undermines the business.

[clocktower] 13/2/2024 16:50

Confidence and volumes slipping in the whole UK stock market it seems. There are so many world wide issues at the moment that upset what was good businesses.

CRU could turn to making the cases for cheap drones that are designed for war zones, and find another company to provide the power and electronics plus assemble, as demand is only likely to exceed supply for some time.

[clocktower] 01/2/2024 21:32

You wish base7, I guess he just wanted to suggest he was up to the job and waited a bit not to have bought in near the recent lows.

He has already announced no dividend, and I guess if he was as good as you are all hoping for, he would have not needed to make cuts but instead showed he could deliver.

I suggest you will think that if he was in a year time, to be able to reinstate a little dividend you would be jumping for joy, as though he would have won you the lottery.

I suggest you brace yourself for more bad news and lots of excuses. This time, I doubt if JG will be able to jump back in, if he fails, like the last guy he handed the reins to.

So, which unit will be sold off first, will it be the most profitable, to ensure it generates the most money and so it looks like a great deal.

[base7] 01/2/2024 14:56

Lance obviously sees 14p as fair value - or he would have waited longer.After a successful career I presume he has some wealth so he will hopefully buy more as he sees fit to do so .

[clocktower] 01/2/2024 10:36

He should have done it sooner to take advantage of the lower share price

[this_is_me] 01/2/2024 07:30

A lot cheaper after the trading statement.

[expletive deleted] 01/2/2024 07:10

A £30k buy from our new CEO yesterday. Moderately encouraging.

[valuschmalu] 27/1/2024 09:22

Lets revisit my October 23 post. I've added new comments in CAPS
-pace of acquisitions in 2022 raises eyebrows. It may be that these are 'deals of the century' but the counterargument is they got overexcited (again) by being cash rich and spent it too quickly. The prior M&A record is not 100% perfect and I would rather 1-2 a year rather than 4 or so in short order then silence EXPECT SILENCE FOR A WHILE ON THE BUYING FRONT
-the buy and build strategy only works if you buy at a significantly lower multiple to where you are trading. So CRU needs to be trading at 8x EBITDA and buying at 4-6x. SEE ABOVE
-The way to getting to 8x (+) is to generate steadily growing EBITDA over time with minimum volatility. Yes COVID etc hasn't helped but CRU is synonymous with earnings volatility. What it needs to do now is beat last year's EBITDA level and do it again next year etc. The recent trading update will (fairly or unfairly) make a lot of people think 'here we go again' HERE WE GO AGAIN
-Given the above comment about earnings vol, debt is too high at 2x. They need to get it down to 1 to 1.5x. For a stronger more consistent company, 2x leverage is fine but we are not there yet with CRU. We are also in a higher rate environment and what was acceptable leverage last year is no longer the case HENCE DIVIDEND CANCELLED
-The easy way to get leverage down is not to overdistribute via dividends and buybacks. Unfortunately to cut the dividend would smash the share price so I don't think that's the way forward. Deleveraging will have to be done the hard and slow way via earnings retention. That also links into the above comment on M&A. I struggle to see at 2x leverage how they can safely do any more M&A in the short term. The big 'unless' here is unless they sell a subsidiary. Global One-Pak may be an option? I know JG rates it but there has been a lot of earnings vol from this company since acquisition THIS IS THE POTENTIAL SILVER LINING FROM THIS LATEST DISASTER IN THAT IT WILL ALLOW THE NEW CEO TO RESET THE DIVIDEND POLICY TO SOMETHING THAT IS COMPATIBLE WITH A BUY AND BUILD STRATEGY. HE SHOULD ALSO LOOK AT DIVESTMENTS WHERE THERE ISNT MUCH REMAINING UPSIDE LEFT
-They should appoint a CEO as soon as possible. I expect it will be one of the recently appointed directors but I doubt institutional investors love a 70+ year old being exec chairman (and not having a CEO)TICK (HOORAH)

[base7] 26/1/2024 14:10

Explains why Lance hasn’t bought any shares ,as yet ,or awarded any shares .He seems to have total authority as CEO & I would obviously have preferred an ‘everything in our garden is rosy’ statement but as ever with CRU ,it has never failed to disappoint over the years & hopefully taking a blunt & pragmatic aporoach will stand us in good faith .Hopefullu my grandchildren will benefit -one day

[clocktower] 26/1/2024 11:11

150k New Boys buy maybe????

[clocktower] 26/1/2024 09:53

Seems to me that there must be a very big sell to show later.

[clocktower] 26/1/2024 08:57

Rivalry will break out as I suggested some time ago, when you have a bag of different former business owners running their own empires then will they even work with this guy that has an ounce of the experience of JG.

I forecast internal wars.

I will wait until it slumps back to 4p or less again, or a miracle takes place and a real leader emerges.

[this_is_me] 26/1/2024 08:25

Nope! At least I am still in profit (excluding dividends) I might have sold some first thing if Charles Stanley hadn't taken it offline for 10 minutes or so.

Typical of a new CEO I suppose; wanting to be seen to be taking over a creaking ship and then showing what a good job he is doing over the next few years.