Coral Products Share Discussion Threads

[effortless cool] 29/3/2023 11:54

Someone left in a hurry.

[clocktower] 29/3/2023 11:34

LOL charo but time for you to pick up more bargain shares then today, as some seem to have thrown in their towels.

Maybe that next deal is one to fear!

[charo] 23/3/2023 15:42

Why?In relation to many they are actually lowely geared. The profit effect as I calculate equates to ,£2500 per million of debt .Sure JG is quaking in his boots😃

[clocktower] 23/3/2023 12:22

The increase in interest rates cannot be as good thing for CRU can it charo?

[charo] 20/3/2023 08:45

Company has survived 2008 financial meltdown, sterling crisis ,brexit,covid and now secured finance ahead of a possible global credit squeeze.Paid dividends 10 out of 11 years ,looks like 11 out of 12 now.Share price for long term holders since JG up 450%.
Day traders who buy and sell on spikes and dips give some liquidity,whilst causing great volatility.
Board keeps moving group forward ,not always upward,but securely.

[valuschmalu] 18/3/2023 11:47

Feels like acquisitions are coming and clearly a lot of us remember the auto debacle (jury still out on global one-pak).
So this is my wish list:
Acquisitions should be cheap ie no more than 6x EBITDA
Overall debt to EBITDA at group level should stay below 2x. There should be no risk of interest coverage ratio breach at 6% base rate
There should be demonstrable synergy benefits with existing group companies otherwise it's diversification for the sake of diversification
Integration and execution risk needs to be managed carefully ie ensuring there is the right governance and infrastructure in place to properly execute m&a and integrate especially given recent flurry of deals. Might mean they need to bolster board and senior management.
Ideally would like an exit strategy articulated at the individual subsidiary or group level

[clocktower] 17/3/2023 07:19

Charo dear fellow, try thinking outside of the box and as you state, the world economy enters uncertain time.

Is now the time to be loading up with bigger mortgages and possibly more debt if another company is purchased that might already have debts that are becoming overwhelming, hence maybe JG can pick them up on what looks like a favourable price?

Hat - maybe you do need to start trying to second guess the implications of these types of transactions, rather than just accept them on face value.

JG has still not restored the share price to its level before the decision they made to enter into the motor trade and appoint a replacement, so that is years ago now, and he is like us, is a bit longer in the tooth nowadays.

Still, there is the dividend.

[temelco] 16/3/2023 07:44

As Nessa asks "What's occurring?" Seems to be a lot of movement

[base7] 16/3/2023 07:20

Substantial volume over the last few days also suggests that something is occuring

[charo] 15/3/2023 15:14

hat absolutely.This is a great call new ,IMPROVED facility,can clocktower read.As world economy enters uncertain time.
Watch cenkos video presentation think feb,where JG talks about cash /cash equivalents now strengthened by released cash equity of £1.4 mill.

[hatfullofsky] 15/3/2023 14:18

It creates financing certainty. We don't need to second guess JG, he now has firepower if he needs it.

[clocktower] 15/3/2023 12:32

LOL - E C.

Plenty of sellers appear as soon as it hits 19p but it was a good little turn the other day but this news does not wash, all it does is create more uncertainty as to what JG is going to do next.

How much debt do you think JG is now willing to load on shareholders shoulders?

I guess he must be looking at his retirement very soon.

DYOR

[effortless cool] 15/3/2023 11:49

"If there is any slowing of sales or reduction in margins this can soon have a big impact on the profits".

Thanks for that extraordinary insight.

[clocktower] 15/3/2023 11:32

Most of the businesses that have been acquired recently have included part payment in shares, and performance targets, thus keeping the owners with skin in the game but if an acquisition is to be made shortly, then it might be made without issuing more shares and not having the sellers with any interests remaining in the acquired business.

Why not disclose the interest rate that is being paid on the mortgage, it is all very well to suggest it is lower than the current deal but without knowing the facts it does land the company with extra interest payments I expect.

If there is any slowing of sales or reduction in margins this can soon have a big impact on the profits.

[base7] 15/3/2023 09:47

My most successful investments over time had little dilution ,eg Plus500-floated 10 years ago ,130p paid ,$1bill in bank ,bought back 20% over last couple of years + decent yield -so 15 + bags + yield .
Dont expect this as Cru aren’t in an industry where major disruption is possible but could grow nicely as long as subsidiaries keep operating well with a difficult economic back drop

[base7] 15/3/2023 09:42

My most successful investments have diluted rarely -eg Plus 500 -130p just after IPO ,$1bil in bank ,bought back 20% of shares & decent yield ( 15 bags + yield )

[this_is_me] 15/3/2023 09:12

A mortgage is much better than a sale and lease back. It means that you can over time pay the mortgage back and have equity in (hopefully) an increasingly valuable property.

[effortless cool] 15/3/2023 08:56

Most definitely.

[clocktower] 15/3/2023 08:41

Is increasing the mortgage liability better than issuing more shares to cover a purchase, if it is a good deal?

[hatfullofsky] 15/3/2023 08:32

They took on a lot of invoice financing debt with the acquisitions, this appears to be a consolidation of that debt, no doubt at a better rate or why else would you do it.

Re-mortgaging also brings in £1.4m

I would say this puts to bed any financing concerns.

[this_is_me] 15/3/2023 07:32

I was thinking along the same lines. Unless it means a lot of investment in current businesses although that would probably have been stated in the RNS.

[base7] 15/3/2023 07:21

Todays RNS re new banking arrangements suggests that another acquisition is close to being announced ,hopefully with little dilution & sufficient EBITDA to cover interest on finance used

[hatfullofsky] 11/3/2023 10:05

It really needs to break and hold 18. I think that will only happen when we get the results. Whole market sold off but CRU was severe

[charo] 10/3/2023 08:35

The inevitable profit taking.

[charo] 06/3/2023 20:31

Amazing degree of liquidity.How many micro stocks can trade at this level of volume.