Coral Products Share Discussion Threads

[topvest] 12/3/2015 15:51

Decided to sell my few. Probably about to announce lots of good news now knowing my luck. Made a profit overall on Coral Products and that was too good to miss to be honest given all the mishaps. I do hope they do well. May buy back in again on further weakness.

[topvest] 09/3/2015 19:57

It seems a very strong run up in the price here of late. It makes you wonder whether there is some good news around the corner as well. Must admit that I wasn't expecting 14p so quickly. Very nice!

[temelco] 09/3/2015 14:07

charo - any link??

[charo] 09/3/2015 13:06

article in share magazine last week.really only back to where it was before vdc.
institutions rock solid so not too much free float.

[temelco] 09/3/2015 12:26

Hmmm can't help but think something is going on in the background. The rebound is IMHO a bit too sharp and aggressive to be down to a few scattered small buys, which is all there has been. Yes I know two directors bought but one of them only bought 25,000 or less than £3000.Hardly market moving stuff....

[clocktower] 09/3/2015 11:12

Seems like another good day for CRU. Bearing in mind the poor news recently, this has had a remarkable run upwards.

[topvest] 05/3/2015 20:33

Yes, good day today. Just need some good news on the tote contract now. Anyway, hopeful as ever!

[charo] 05/3/2015 16:49

ct the problem was the media sales 85% of group 3 years ago-now probably less than 10%,the only way that could be achieved in such a short time was by acquisition.
sure jg would have preferred cash to be conserved ,no dividends,but that is not how institutional investors view manufacturing sector.they require divs to allow them to take spec punts on the next biggie tech play.
vct and iht investor funds almost require guaranteed divs.still expect patchy ride but could be worth the pain.

[playful] 05/3/2015 13:49

Great day!

[clocktower] 05/3/2015 09:41

temelco, I have not got a problem with JG but to allow a client in a declining industry as much credit as clearly they did, does not show competence imo. He needs to put the company back on course and not be to quick to make further acquisitions until the whole board has resolved the problems the company clearly has.

[temelco] 05/3/2015 09:22

I don't know what your problem with JG is Clocktower. He has a long and good track record. If he does half as well here for the shareholders as he has elsewhere, I'll be more than happy

[charo] 05/3/2015 09:02

and his 5million shares ??? jg knows such an investment is worth little until realised and so will work to achieve a satisfactory outcome which must be for benefit of all.he cannot sell piecemeal.

[clocktower] 05/3/2015 08:52

It seems that the 100k shares that JG purchased squeezed the availability of stock, hence the jump on the small amount that has since been traded. His investment of almost £9k has paid off handsomely in a short period of time, now being worth circa £11k.

[topvest] 02/3/2015 20:05

I'd rather they were buying than selling!

[temelco] 02/3/2015 09:32

I'd suspect there's little or no stock to be had at these levels, and the MMs will not want to be short IMHO.

[clocktower] 02/3/2015 08:58

They seem a bit desperate with small value buys to keep the share price up with director buys after such poor news.Still it has an effect each time.

[charo] 24/2/2015 20:22

God read the accounts turnover heading for 20 mill net of media.Profits at least 1 million in worst scenario .Media now around 5% sales
Interpack 30% turnover with no customer with more than 10% see listing particulars .Tatra 20 % group no major customers or products more than 5% group turnover.Recycling 10% 0ver uk total national government. 10% crates.
the whole business has been derisked.JG has been in this environment for 30 years and continues to invest alongside his institutional investors.IF CLOCKTOWER LOOKED AT HISTORY HE WOULD KNOW MEDIA PEAKS AROUND NOV /DEC.the sales of vdc say around 420k appear to be no more than November and Dec .So no overdue amounts.Their credit record must have been good ,again this was outside control of a non exec chairman .If any problem with major contract,material that is,then jg on his past record would inform market.
He is no doubt hamstrung by commercial constraints but all his announcements have been sound.No pr announcements,ie non regulatory,but all under the rules of the rns criteria.
But who knows maybe just in it for himself,but 700k in the pot.

[topvest] 24/2/2015 20:08

Personally I think he is doing a good job in turning this around. As we know from Warren Buffet "Turnarounds seldom turn" and it often takes a while. They are making progress and I am hopeful that this will be a stronger business going forwards. We are not out of the woods yet and the crate contract would be a major positive when that gets going, but we need to be patient and give them time to improve things.

[rohkap] 24/2/2015 19:50

Clocktower-Whilst I agree that an update on the crate contract would have been helpful, I think you are being a tad harsh on JG. In a worst case scenario, he wouldn't really clean up if CRU went into administration just by having some security over some Interpack tooling. How much would that honestly be worth? I think the secured property creditor would very much be calling the shots in an liquidation scenario. I would imagine that his and the board's thinking at the time was secured loan at 5% or unsecured at 10%. Unless I'm being really stupid and missing something obvious I'm happy with the former.

[temelco] 24/2/2015 18:39

Clocktower - from statement 8th December: "We reported earlier in the year that we had an agreement to supply a range of totes to a leading national on-line retailer which would have a positive impact on the second half. We are presently close to final approvals of these products which will lead to initial trial orders ahead of expected full production by next spring."

[clocktower] 24/2/2015 18:07

charo, "As to update on crates I believe commercial confidence has a big part again according to directors that is why customer is not named."

Nobody has suggested they name them but the could say how the contract is standing at this time, and what progress has or has not been made.

Being able to afford the divi in April and not have the cash to cover the loss bearing in mind when they would have received the funds if the company had not gone in to administration is the question that should be asked. I doubt if the month due would have been the full £500k and may not have even been £200k - how many days credit were this company being given by CRU? Were they in to deep to refuse to supply and just let the account reach that figure? Are there any other companies that owe large amounts to CRU in doubt? Could they bring the company crashing down and leave the whole things in JG hands for a song as he has security on a large amount of equipment? He might have £500k tied up in it but if that was the case he could extract a lot more than £500k in value imo. So heads or tails he stands to win unlike other small stakeholders.

Let him provide more information as to risks and more info about contracts that they have issued RNS about that were used to promote the share price some time ago.


April 2014 RNS "The Board anticipates that the contract will be signed shortly and will issue a further notification when this is done or in the event that discussions are terminated."

The contract was due to commence from June 2014 - so I think a clear statement should have been made a long time ago as they spent so much on tooling for it.

[temelco] 24/2/2015 17:49

Charo, you are dead right. No one HAD to sell their shares and the banks would have LOVED a renegotiation on an overdraft/loan. Juicy fees all round and an uptick in rates. JG has his own dosh at risk - unlike many other companies where Directors don't put much out there. Well done JG I say for stepping up to the plate. The other point ( never mind the length of time for getting the money back) is that even without anything from this big contract the company is doing OK. Once that starts to roll, it should be good. My worry is they'll get taken over before the full benefits flow through

[charo] 24/2/2015 17:23

Bet all other shareholders delighted div being paid.Rohcap got it right vat takes 6 months to recover and liquidator /admin payment could be 12 months.Obv BOARD WOULD HAVE PREFERRED BANK TO INCREASE LIMIT,but banks very slow to make decision would have renegotiated other covenants charged an arrangement fee and then insisted on additional security.Shareholders have been I feel kept up to date ,nobody needed to sell jg I am certain would have been cleared by advisors.Clocktower appears to have a personal issue with jg.As for coral without his input the company would have failed some time ago,this was admitted to me at an agm by some of the directors not jg.JG has 500k of own money ,no options,plus 200k loan at risk.give him a break.As to update on crates I believe commercial confidence has a big part again according to directors that is why customer is not named.

[rohkap] 24/2/2015 16:18

because £200k is the ultimate loss after recoveries which I would imagine take a while to arrive in a liquidation scenario ie short term cash hit is higher than £200k. This cashflow hit may have also coincided with capex payments. Its uncomfortable that they sometimes sail close to the wind but I'm somewhat reassured by the trading update. I do agree however that an update on the crate contract would have been helpful