Coral Products Share Discussion Threads

[temelco] 29/4/2022 08:39

I find it very interesting that circa 15p seems to be a resistance level when on practically any criteria the price should be higher. Maybe after a stonking set of year end results there might be a re-rating, but as you say b7 memories of previous banana skins may linger for some time yet

[base7] 29/4/2022 08:07

Clock-I have been critical of CRU since I first bought,many moons ago.
The RNS on 20/4 referred to reportable profits being ahead of expectation-so FY22 has clearly been better than expected in that respect.We live in increasingly uncertain times resulting in uncertainty regarding FY23 & CRU have a history of banana skin scenarios emerging ,which are hopefully in the past.We are underwritten,currently,by no debt & a ( presumably) expanding cash pile.There must be small private companies with decent products & customers who are struggling under the burden of supply chain issues,inflationery issues,weak balance sheets & owners seeking an exit & I would expect many decent opportunities to make well priced acquisitions on favourable terms & absorb those bolt ons into existing facilities & reduce their operating costs substantially while increasing margins due to economies of scale.
Cru unlikely to ever multi bag but may provide a "safe" haven during uncertain times,prior to JG selling it to give him his exit ,as some stage

[clocktower] 29/4/2022 04:23

It does not necessarily follow that higher sales lead to higher profits, as expenses may have risen at an even faster rate, and how can you be certain that things like extra staff have not been employed in sales to drive the growth, remember turnover is vanity, profit is sanity.

Have promotional costs increased or transport costs, or could it just be inflation that has lead to the higher level than expected, as they might have increased prices and even expected a drop in sales, if for instance they had increased prices to improve margin.

I am not knocking CRU just pointing out what could be a false assumption, though I acknowledge that may not be the case.

I do agree with charo that this is a safe haven with the cash pile and with a mainstay of UK business in these challenging times.

The one concern is that it seems they have not yet replaced the supply chain from China, and with containers being in short supply, and higher transportation costs the future might not be as good, plus slowing retail sales.

[foldender] 27/4/2022 18:19

Is anyone else confused by the RNS of 20th April? It implies but fails to say clearly that the “materially above market expectations” Sales will result in materially above market expectations pre—tax profits. The interim results from November had already told us that the £0.9m gain on sale of land and buildings at Haydock will be included in reportable pre-tax profits for the year. It would have been nice to be told that, in addition to the exceptional property sale gain, the higher than expected sales will also result in higher profit.
Still the extra dividend was unexpected and seems to indicate confidence going forward.

[charo] 22/4/2022 22:02

Haven in difficult times,strong cash position and current profitability and home sourced business in main.

[clocktower] 20/4/2022 13:11

So it seems they never realised it was a Bank Holiday on 3.06.2022

[temelco] 20/4/2022 10:36

HFOS- got to be in the pipeline
TIM - absolutely

[hatfullofsky] 20/4/2022 10:30

To me it's extremely telling that the buybacks have stopped, add that to the moratorium of companies entering administration ending at the end of March and our cash pile and I wouldn't at all be surprised in an acquisition of a distressed company soon.

[this_is_me] 20/4/2022 10:20

Buybacks made a lot more sense at 5p than 15p. You can always collect dividends and buy more shares.

[base7] 20/4/2022 10:15

Dividends are paid out of generated profits & reserves & reflect confidence that we have generated sufficient profits to justify a very decent yield -which will hopefully prove sustainable .
Buybacks would be utilising capital & in our inflationary environment I am assuming that JG is looking at acquisitions which will yield more than the dividend saved on any additional buy backs -although with view to our bank balance we could do both ,if there was a stock overhang

[clocktower] 20/4/2022 09:53

Ok I will amend the post to "as the BOD".

[temelco] 20/4/2022 09:39

Can't agree more Charo

[charo] 20/4/2022 09:31

Clock tower unnecessarily perjorative language JG simply stated board view.
As to why not forego div and buy further treasury think he is able to judge better than us and will have his reasons.

[clocktower] 20/4/2022 09:24

One other thing comes to mind - as the BOD was bleating about the value of the shares when they were using company funds to buy a lot for treasury - why has he not continued to do so, rather than an extra dividend?

After all all the shares held in treasury can be used to satisfy options but at 14/15p were unlikely to be exercised.

[this_is_me] 20/4/2022 09:09

They say that the dividend will be paid on 3rd June, but that is a bank holiday so I presume that we will not get it until the 6th.

[this_is_me] 20/4/2022 09:02

LOL Expletive Deleted. They certainly screwed their nominee holders in BILL when it was being liquidated. I got a nice cheque direct from the registrars, since I have a CREST account and actually owned the shares. Those whose holding was legally owned by a Barclays nominee account got nothing because they didn't bother to do what they should have done. (See the BILL thread)

[base7] 20/4/2022 08:53

Many small manufacturers will be struggling & if we can acquire at pragmatic costs & absorb within existing premises ,cut out unnecessary levels of admin & enjoy economies of scale ,we could well grow by shrewd acquisition as well as organically .JG hasn’t always got it right but he’s not the type of CEO to make positive projections for 22/3 when we exist in such an uncertain World

[clocktower] 20/4/2022 08:37

Base7 why did Joe fail to address the points you raise about 2022/2023 - is there a deal about to be announced shortly that would bring another dimension to the business and swallow up a lot of the current cash pile?

I guess that is what is holding the share price back.

[temelco] 20/4/2022 08:34

EP - You have that one right as well! Maybe that's why they made it .4p as opposed to .5p which would have confused them. I know two people who sold yesterday.....

[expletive deleted] 20/4/2022 08:11

Unless your broker is Barclays, of course; they will probably assume it's a mistake and send the second interim back to the registrar.

[base7] 20/4/2022 08:09

Great to be surprised on the upside by CRU - just when may small manufacturers are announcing supply chain issues,substantially rising energy , increasing labour costs & softening markets.
The update was for the ear ended 30/4/22 & we should hope that our order books remain strong into the new year

[expletive deleted] 20/4/2022 08:08

You certainly have, temelco.

[temelco] 20/4/2022 08:05

Nice. Am I reading this right? So far this period we have had 2 divis one of .5p and .4p with a final to come. So even if there was no more that's about 6%.
So let's be generous and say there's at least another .4p to come, that means the divi would be 8.5% gross? Have I got that right?

[bishan bedi] 20/4/2022 07:53

Haha 20p you ramper clockers

[value hound] 20/4/2022 07:45

Excellent update - but what were the expectations before today's RNS?