Coral Products Share Discussion Threads

[hybrasil] 11/11/2004 12:41

I did tell you!

[hugepants] 11/11/2004 10:26

It just keeps getting worse

[hugepants] 10/11/2004 16:01

Its not even worth topping up. Max online buy is 3K. LOL!

[hugepants] 10/11/2004 15:49

This is getting depressing

[hugepants] 09/11/2004 09:06

Eh?

WELL BELOW 20p?

SkyRacer, Do you know of any other company with discount to NTAV that a share price of 20p would represent? ie. NTAV = 55p so a share price of 20p would be a whopping discount. And lets forget for a moment that CRU is a highly profitable company (OK maybe less so now). Can you suggest even a loss making company that would have such a large discount?

(PS. From memory there is about 2M of property on the NTAV).

[adon] 08/11/2004 21:02

I think you're ramping these down and it won't work. I agree CD sales will be affected, probably not dvd and grannies and people in the middle ages like the physical nature of the CD. People like to collect CD and DVd of their favorite artist or film. We are hoarders of stuff. If we collect everyting on hard drive the information will be lost. Hard drives are only good for the short term. This may change in ten to fifteen years time but not in recent years.

Coral are already moving away from videos. There still make them cause there is still a market. What would granny buy her grand childs for Christmas a hard drive. Too expensive.

Coral are a slight risk but they pay a div and have only moderate gearing.

By the time CD are no longer vogue Coral will have moved on. A there current price they only a slight risk. The reaction to this share is what typically make the stock market a place to make money. After the result the price will recover, although probably to no more than 50 odd pence. If you look at the price over the years though you will see the price never did go much higher. The price also drops about this time of year anyway.

[hybrasil] 08/11/2004 13:40

skyracer- I think that is good advice. I will keep watching these and may be tempted at the 20p level

[skyracer] 08/11/2004 13:09

Rohkap, you only have to read L&S's post above. I would not use NAV as a guide as falling CD/DVD sales will just mean excess capacity. High street retail sales are known to be weakening. Permanent high oil prices are bad news for CRU costs as well. Dont rely on the dividend being maintained either. It is quite possible the CRU share price could be in for a really shocking fall ie well below 20p. It is a pity because I rather liked the company and have been an investor in the past but would not touch them just now as there is so much risk.

[rohkap] 05/11/2004 13:20

Bit of a newcomer to this share, so trying to establish whether now is the right time to dip in. They made 2.3p in 2H03. Assuming things have got slightly worse on both the sales and margin front, could be looking at 1.5p to 2p for 1H04? Annualising that would give 3-4p for the full year-I guess this would mean in all likelihood that the divi would be safe for at least one year.
Would appreciate some thoughts on the product line split between DVDs, CDs and videos. I dont think this info is disclosed, but I know that DVDs are at least 25% of sales.
Obviously looks cheap from a NAV perspective. There are no defined benefit schemes so no need to worry about pension deficits. Asset base does consist primarily of plants and machinery though where I would guess NRV should be lower than NBV, hence a discount may be warranted (but 40% seems harsh).

[long and short] 04/11/2004 23:41

Having looked at past accounts, I agree with one of the previous comments, namely; there will not be a MBO because the controlling family are using this as a cash cow - they consistantly vote themselves large basic salaries, plus bonuses, plus share options on favourable term. Last year they took £32,000 of bonuses each, that's £96,000 in total, despite the fact profits dropped by 20%; thats £400,000.

They are taking more than their fair share leaving shareholders no hope - not least because, between them, they also have control of the company.

My conclusion; what was the point of coming to the stock market when you continue to run it as a personal feifdom???????????????????????????

[felix99] 02/11/2004 19:21

If they were going to MBO it they would have done about 4 yrs ago when it was at 29p or so. They are not that type for an MBO. They are happy collecting the divi's and a six figure salary .

[clocktower] 02/11/2004 11:28

MBO...in time but they will want the price to fall if thats the plan.

[gemini99] 02/11/2004 10:47

yield is 10%
PE = 6
Priced at 60% of tangible assets


Theres an awful lot of lee-way there. Video box sales decreasing but were expected to anyway. Not much surprise there, just a bit quicker than anticipated. The DVD/VCD box sales in line with expectations.

[long and short] 02/11/2004 10:25

Falling share price ahead of results in December = very poor results are to be announced.

The selling has the whif of desperation to get out before the results - last year was 2 December.

[hybrasil] 02/11/2004 09:34

gemimi
I dont agree-look at the chart.could go back a bit yet

[gemini99] 02/11/2004 08:37

cheap as chips

[felix99] 01/11/2004 20:25

Its de high oil prices that are causing the worries ultimately in tandem with weaker demand. If demand is high its no problem passing the plastic price increases on to customers. If as I suspect demand is a little slack then margins get crushed.

Having said all that Coral's profit wqarnings are the kind that say were only making a million this year instead of £2m.

Will be dipping in soon - yield is fantastic and safe as houses at this level.

Better free some cash up for the lousy day I am waiting for I guess.

[clocktower] 01/11/2004 15:41

It seems like the market does not like it either Paddy.

[clocktower] 28/10/2004 08:18

Paddydiver, If you reduce sales by even 20% over say the next 3 years....where does that leave Corals business and huge investment in equipment that they made not to long ago?

[paddydiver] 22/10/2004 13:45

Until the music shops disappear from the high street this company will have a market. Not everyone likes music in an ipod.

[clocktower] 20/10/2004 14:52

Just spotted your post Alex as I thought I would visit it again to see how things were going. I am not buying anything bar VTB/MLB at present as I am going cash & having a rest till early next year from early Nov.

Ipods will kill this and other downloads/streaming etc...If I am wrong good luck Alex

[alexandrews] 06/10/2004 03:31

Hey CT, how come you're not buying this one?

8-)

[clocktower] 24/9/2004 11:25

yes NTV...Its going down the pan.... CD box sales will fall as well soon with all the downloads hitting the market..SELL pity its to small to go short.

[ntv] 24/9/2004 10:24

tried to short this one this morning as mm were asleep but couldn't find anyone to take it,doh

[ntv] 18/9/2004 20:26

good idea richard