Coral Products Share Discussion Threads

[temelco] 30/5/2022 17:51

HFoS - Couldn't agree more

[hatfullofsky] 30/5/2022 17:34

By my calculation they now have an annualised revenue run rate of £36m, if my Op Cash estimates are correct £1.5 H2 22 and £2m H1 23 they will still have £8m net cash at HY 23.

[base7] 30/5/2022 13:21

Worth holding for exceptional yield & prospect of a Corporate Event giving JG an exit a deserved premium , in due course-all assuming we continue generating decent profits & cash flows & that no more banana skins arise.

[temelco] 30/5/2022 10:07

It's pretty obvious the business has more than doubled with these acquisitions. Cash earning maybe 1% has been turned into two businesses earning more than a decent return. In the circumstances, the only reason the share price isn't moving is because the company as a whole is too small to become a proper institutional stock. Also, it seems to me they sold business and property for circa £12m and have bought back more than the turnover and profits sold for about a third of that - and quite a lot of cash left over Clever deals.

[base7] 30/5/2022 09:56

Finals ,positive outlook statement confirming acquisitions on track & increased dividend may see our share price rerate but we may have to wait a while .

[base7] 30/5/2022 09:56

Finals ,positive outlook statement confirming acquisitions on track & increased dividend may see our share price rerate but we may have to wait a while .

[clocktower] 30/5/2022 09:46

Time the share price reflected these good deals imo.

[baner] 30/5/2022 09:44

Mr Grimmond is really an excellent Chairman ! Very clever transactions completed in recent years,share buy backs, disposal of vacant property - and genuinly looking after the best interest of all shareholders. AAA performance!

[clocktower] 30/5/2022 08:27

base7 there are advantages of operating out of several locations and I do not like seeing all the eggs in one basket. For example, have a major fire and you wipe out everything, a strike and the whole plant stops, power outages in certain areas only maybe - and on the plus side businesses compete against each other to be the best in group.

Versatility with production at other sites if large orders need to be completed can be another advantage.

[base7] 30/5/2022 08:16

Quick company search suggests that the vendor is an elderly German lady who wants to put her house in order & as we are retaining management ( hopefully) & they will be incentivised to stay,Alma will hopefully be able to remain on a growth trajectory & economies of scale may help drive down costs.Core factory costs ,especially energy, increasing input costs & , of course, high energy costs are all a concern together with what seem to me to be very high admin costs for a company with only around 50 employees-so there may be scope to reduce some of those costs ,& they may include some costs to the vendor which will be eliminated.It would be interesting to see if the operating business could be transferred to one of other facilities in order to reduce/rationalise costs as we may not need to operate out of 4 or 5 different premises all in similar location

[clocktower] 30/5/2022 07:49

This will put another rocket strapped to the core base. The concerns about the rising costs of materials remains with the whole plastic industry but other than that the whole CRU package is looking good.

[base7] 30/5/2022 07:44

Additionally we are paying £1.5 mill ( + possible earn out) which is less than net Asset Value of £2mill & as expected to be earnings enhancing in year 1 & assuming it operates in parts of the economy less likely to be impacted by the current economic headwinds.I havent yet done company searches but the cynic in me questions why the vendor is prepared to sell for such a reasonable price,especially if cinfident of exceeding EBITDA of £500k in the current year in order to achieve a decent earn out.

[this_is_me] 30/5/2022 07:29

At first glance that looks like a terrific acquisition. At a very low P/E, large sales to price ratio, great growth prospect and state of the art facilities, so no large CapEx required.

[rookieswingtrader2020] 25/5/2022 14:04

Ok interesting, fair play.

[hatfullofsky] 19/5/2022 10:19

Rookie - This is the best performing stock in my portfolio (ie it's not tanked 50% like most of the other micro-caps I hold)

Entry points are always important but so is patience. This is one solid company that keeps generating solid cash flows and paying great dividends.

[temelco] 17/5/2022 12:48

Hi Clockers yes agreed for some reason the MMs don't want to go to 20p as a start which seems ridiculous. Maybe year end figures will.provide the boost

[clocktower] 17/5/2022 12:04

Its never been a short term traders stock but it is a rewarding stock if you follow it .

Good Luck though but target is 25p now.

[rookieswingtrader2020] 14/5/2022 16:05

And I appreciate that under those circumstances I probably should be grateful for the technical profit, but it's far less than minimum wage from a reasonably-significant stake, what with the limited research, tracking, record-keeping, and with much cheaper entry points witnessed during my hold, all at the recommendation of a paid newsletter with Rockets in its name.

[rookieswingtrader2020] 14/5/2022 15:10

I retract, with apologies, the massive overreaction of my previous post. There's blood on the streets out there in the market right now, I'm stressed, apologies.

[charo] 13/5/2022 16:38

Wow so a profit not loss in 6 months.
Get real .

[rookieswingtrader2020] 13/5/2022 15:49

Admittedly yes, once dividends are included, my manageable loss becomes a not-worth-the-effort profit

[charo] 13/5/2022 15:47

Including dividends hard to understand.

[rookieswingtrader2020] 13/5/2022 10:35

Just sold at a manageable loss after 6.5 months of my time again being wasted by another ADVFN Hot Stock Rockets recommendation.