Coral Products Share Discussion Threads

[charo] 13/10/2021 09:33

Balance sheet stuffed with cash rump sales £12mill pbt £1 mill dividend secured for foreseeable future.Comoany will survive in spite of imminent economy collapse.
The board is well run,cohesive, experienced and will ride out coming storm.IMO.

[clocktower] 13/10/2021 09:25

It seems its going to take better news than buying back shares to get the share price up, regardless of the returns or value.

It either needs big contracts to be announced or a deal at a great price that includes most if not all the shares held in treasury imo. In fact if they keep buying them at these levels, a business seller should be more than willing to take even more stock in the company, if it is likely to send the share price up and over 20p imo.

[clocktower] 12/10/2021 11:45

So Pauls trade not showing and yesterday clearly seems to be a house broker/MM worked job.

Note the trade was on 12.10.2021 not yesterday. So was it off market or will it show?

[clocktower] 11/10/2021 16:31

So we should soon see what is behind the drop - is this the end of the overhang or is it a new seller?

[clocktower] 11/10/2021 13:03

charo, take it private and save £400k a year. A management buyout would be good for them all I guess, and most would accept 18p a share right now. So take out the percentage they already hold,they could buy the rest for around £11/12 million, and bearing in mind the cash that should soon be in the kitty, the funds required would only be around £5 million using the cash in the business - and they would have a business returning around £1.2 million pa. less finance costs.

That is a great return, and I guess they could soon sell it on at a decent profit as well.

[base7] 11/10/2021 12:10

If JG has no major plans for the cash ,apart from another couple of bolt on acquisitions for £1-£2 mill each & is confident of our sustained profitability & ability to maintain/increase divi at or beyond 1p per share ,the opportunity cost of buying back shares at current prices provides a yield for CRU of 7.5% & is worth persisting with -especially if he has bolt on acquisitions in mind ,paid for partly in cash & partly in shares ,particularly if our share price increased to 15-22,ie around 18p mid

[charo] 11/10/2021 12:00

All rests on use of the cash.£7 million in bank earns £70k but plc running costs are circa £400k.

[bertiebloggs] 11/10/2021 11:02

Totally agree - quite a price range and no reason why so wide.

[clocktower] 11/10/2021 10:56

Thank you bertirbloggs

Most interesting is WH Ireland's fair value at 15p to 22p.

[bertiebloggs] 11/10/2021 10:44

hxxps://masterinvestor.co.uk/equities/end-of-week-small-cap-round-up-featuring-mrl-cru-and-alu/



Coral Products (LON:CRU) – still aiming for 18p a share

Even after this week’s final results the group has been buying in more of its own shares.

The last year has seen quite a lot of corporate movement, selling off subsidiaries and buildings and making in-roads into its future growth through acquisitions.

The year to end April saw sales of £10.7m (£8.7m), with profits more than trebled ££0.76m (£0.23m).

Cash reserves in the group rose from £0.5m to £3.8m and will shortly be boosted further following the property disposal worth another £3.5m.

That will leave the shares with a net asset value of 15.3p a share.

Since the year end raw material prices have risen so the current year to end April 2022 may only see £12m of sales and profits of £1m, taking earnings up to 1.2p (1p) per share.

Analyst Jason Streets at WH Ireland has pencilled in a fair value range of 15p to 22p, for the shares, now trading at 14p.

A dull performance to date but my ‘water’ tells me that this one will come very right in due course. My price objective remains firmly intact.

(Profile 28.04.21 @ 14p set a Target Price of 18p)

[clocktower] 11/10/2021 10:39

Looking at L2 I think a bit more corporate action is taking place.

More cheap stock available maybe. :-)

[clocktower] 11/10/2021 10:06

Good morning all, another week in the office and so far it seems CRU will be in sleeping mode once again for the time being.

Has anyone seen any reports in the tipsters press?

So, we go from several days where millions of shares have changes hands to what could be a trickle until further news appears.

Could JG provide another statement that might provide life to the share price ahead of the AGM?

Will any other directors buy shares?

As the CFO only got married last year, I think it unlikely that she will be in a position to add to her very small holding.

Joe already has 7.65% of the company, so unlikely to add imo.
Paul Freud with 2.53% could I guess add a few - his increased from April 2020 to current holding was just up 50k
David Low on the other hand has increased his holding a lot in the same period from 980k to around 1.3million now.
Steve Barber - has been constant at 2m

Then we have the PDMR's

No change since April 21 -

So all in all we may not see much action there I guess.

So all the other significant holders are in nominee accounts, as I expect most of the posters here have their holdings held, so bar going over 3% we will never know who is trading larger chunks.

Have a good week all.

Worth keeping an eye on MNO this week imo.

CT

[temelco] 11/10/2021 09:54

Strange no word about the 1.4m...

[base7] 10/10/2021 12:47

You may well be right but looks like 3 separate transactions at slightly different prices to me ,although it is possible that 1 or 2 of the transactions were reversed (not yet showing )leaving just 1 .Either way a sale of 1.4mill still represents over 1.5% of issued SC & MMS would be unlikely to hold this amount without a willing buyer.All should be revealed this week -or the mystery will remain

[effortless cool] 08/10/2021 21:03

I'm pretty sure that it is the same 1.4m shares appearing in three transactions, so less than 2% of the issued shares.

[base7] 08/10/2021 20:05

4.2 mill shares sold in 3 tranches over last 2 days must have gone somewhere & are unlikely to be with MMs ,so it will be interesting to see where 5%+ of our issued shares have gone .It would be best if a TR1 is filed showing a new major shareholder ,or that an existing holder has increased their holding & a high yielding fund would be very pleased with 7.4%+-1 of whom already owns 7 mill of our shares.Hopefully all will be revealed next week

[clocktower] 08/10/2021 17:12

So another of those 1.4 million trades today but so far no mirror trade at a fraction higher or lower price.

I think the whole way the accounts were presented initially gave the impression that there was no dividend and in general they were misleading to those that only glanced at them but clearly there has been a big shift in stocks on the day and since.

Regrettably very little interest to date has been shown by PI's whom are cautious with the market as it is, as I guess very few have picked up on the returns this is offering.

If it gets some good press that may change.

Have a good weekend all.
CT

[this_is_me] 08/10/2021 15:53

Expensive mistake - putting the wrong dividend amount in the Annual Report and Accounts and reprinting it. My replacement arrived this morning.

[clocktower] 07/10/2021 19:28

We will have to wait and see if what you say is correct, assume nothing - it could be any sort of trade, not necessarily a treasury buy. However judging by the trades today, I would suggest the overhang is most probably cleared now.

It will just take a fair bit of private buyers to start slipping these into a long term savings/ growth plan for the share price to move but that could happened at anytime, and at least is likely to happen when the final news of the sale is posted.

[base7] 07/10/2021 19:02

More bought for Treasury so we may have bought back more than 5% of our issued SC this week & it would be interesting to know how many more the seller wants rid of .A great deal for us at 13.5p with a notional yield of around 7.4%

[clocktower] 07/10/2021 17:22

Another 1.4m roll over or what?

[clocktower] 07/10/2021 16:11

If JG and Co have any hair left I guess they are wondering what else they can do to get the share price up.

Maybe another investor presentation once the money is in the kitty from the sale of Haydock.


Maybe the next business seller to CRU might prefer a bigger chunk of payment in shares, so JG could keep adding to the 4 million already in treasury.

Or when the cash comes in from Haydock, a special extra dividend of 0.025 maybe with a suggestion that they are likely to recommend a dividend of 0.075 for the years ending Oct 2021 which they might pay out early 2022 and that should send the share price above 20p.

[clocktower] 07/10/2021 08:44

Remember this from June 2021.



While the prediction was a little early, I think you will find it is exceed by some margin before very long.

[clocktower] 07/10/2021 08:36

Time to update the company website following todays news.



As regards the overhang buyers are in luck if there are still a small amount to clear.

[base7] 07/10/2021 08:32

What we don’t know ,although JG may,is how big the overhang maybe & if it is an II who are happy to be completely out as it no longer meets their investment criteria our share price may be held at these levels until they are done -assuming we have the appetite to take them out .That would also afford Directors/PDMRS the opportunity to buy more shares at what we would hope will prove to be low priced .As ever we will do our own research & act accordingly