Coral Products Share Discussion Threads

[clocktower] 14/5/2020 13:42

Yes charo - surprised to see a seller - In the circumstances they have done a grand job and are well placed to see a recovery within four or five months at worst imo.

Good to hear of big increases in orders at this early stage for products imported from China at I expect greatly reduced prices, that clearly appeared very attractive to customers.

Good deal with the bank as well. I wonder what the property will go for but it will be based on what CRU are willing to pay in rent.

[charo] 14/5/2020 10:01

GREAT NEWS.

[clocktower] 07/4/2020 15:24

Worth considering this side of the business.

[clocktower] 07/4/2020 14:45

sitrep - Thank you for your input, in my post of 1613 I never mentioned face masks but suggested there maybe other items that MIGHT be in demand by the NHS that CRU could make, maybe you can help with that one - it was only mentioned as a discussion point.

Turning to Ocado, I am sure your correct but are Ocado not increasing the capacity by opening new warehouses - not only because of this crisis but because of the deal done with M&S, so my guess is that they would need more of the standard totes - again maybe on that one you have more knowledge than I.

Pumps - agreed but they do turn out a lot of other containers for many items sold in supermarket, not all needing pumps.

I think we will need warmer weather for any meaningful increase in ice cream tubs😎.

Still the last RNS gave me greater confidence in respect of the 70% of goods supplied. 👍

[sitrep] 07/4/2020 14:27

CT, lets look at this. Coral does not, is not and cannot make face masks of any kind. On the Ocado totes, a fulfilment centre uses a fixed number of totes regardless of volume so no extra sales there, the pumps are not made by coral but imported from China - this could be positive assuming they can get inventory! On the up side maybe people are buying more ice cream??

[temelco] 03/4/2020 17:34

Yes Clocktower. A message I think - telegraphed!

[clocktower] 03/4/2020 16:55

LOL - yes only a grands worth but I think it is just to send out a message imo.

If I was not in the middle of my divorce I would be buying a lot more right now.

There is plenty to be positive about, as they may even have started turning out goods (PPE) for the NHS - who knows bar JG etc. A lot more pump bottles being sold I expect plus Totes must be in huge demand by Ocado.

Food containers as supermarkets increasing sales of a whole range of goods that would have gone to restaurants etc.

[temelco] 03/4/2020 14:23

£1000? Maybe he is as strapped as the rest of us.....

[clocktower] 26/3/2020 17:06

As long as the government does not close factories like this, that as they stated in RNS supply essential materials that account for 70% of the business sales.

So, if they remain open will be able to struggle on unlike a lot of businesses. In fact a few big orders could make all the difference I suspect. Tote orders from on-line retailers must be really top of the pile right now. Plus with the drop in oil prices and the re-cycling plant material being used, it could be better than expected. At least they are still trading in line with expectations, which is more that most.

[sitrep] 24/3/2020 17:47

yes but still goes to a credit committee like a normal loan. The liquidity ratios must be a concern.

[clocktower] 23/3/2020 12:50

Something CRU can take advantage of: Cheap money -

On March 11, 2020 the UK Chancellor announced the ‘Coronavirus Business Interruption Loan Scheme’, a new temporary loan scheme delivered by the British Business Bank, which will become available the week commencing March 23, 2020.

The scheme will support UK SMEs with a turnover of no more than £41 million per year. The scheme provides participating lenders with a government-backed guarantee of 80% on each loan up to £5 million in value and, with the UK government covering the first 12 months of interest payments, seeks to bolster lenders’ confidence in continuing to provide financing to SMEs.

[clocktower] 19/3/2020 00:08

One more thing, the pound may have dropped in value but the price of Oil has fallen even more and bearing in mind the regulations concerning the percentage of recycling materials that businesses will be wanting to meet CRU are well placed.
They might also be required to make things like plastic masks for the NHS and turn to supplying parts to other medical suppliers. Fortune favours the brave.

[base7] 18/3/2020 23:07

Clock-you forgot to mention that our recycling plant will be operating 24/7 from the end of this month.However ,I remain long & negative & would exit if I thought I could without having to accept even less.I hope your optimism is rewarded Clock as,if I was any good at this investing lark I would not be holding CRU

[clocktower] 18/3/2020 21:34

Each to their own mm.? Good luck.
However the small predicted loss may yet turn out to be a small profit.
Tote orders , huge increase I suspect in food containers and sprays and an increase in recycling to just mention a few little lines, as long as the work force do not go off sick.Factories like this are essential unlike those that do not make goods for the supply chain.

Supplying totes for the online food sector, supplying many of the big supermarket chains and major brands with their requirements for plastic containers in this really busy time will stand them in good stead. Hand wash pumps, bottles I guess they are struggling to meet demand.

[michaelmouse] 18/3/2020 19:59

Wouldn't touch it with a bargepole. Nearly £9m of debt and sod all cash. Don't be surprised if it goes bump!

[clocktower] 18/3/2020 18:35

LOL. Next you will get a booming business update - I assume you are the bargain buyer today. :-)

[michaelmouse] 18/3/2020 18:11

Could go bust this one after a quick glance. Trading for the year was already predicted to be a loss and the interim dividend had already been cut. Only around £400,000 cash left. Unprecedented times but already struggling companies are very vulnerable.

Perhaps they'll try and preserve cash with a de-listing? Survival will be their priority and it looks precarious.

It's a bloodbath out there.

[clocktower] 18/3/2020 12:19

Must be some folks desperate for cash and bargains for others, as the price slides along with a huge number of other stocks.

Ocado must be needing loads more totes I guess. 😊

[clocktower] 12/3/2020 09:51

Because of the new plastics tax, it has put CRU ahead of the cycle with the plant the company invested in ahead of many in the field, it should turn out to me a master stroke, as they are so well placed to use and sell any surplus.

[aleman] 11/3/2020 16:08

Oil price should be good. Pump dispensers should be good. Food packaging shoud be good. Recycling plant should be slight advantage over a limited amount of competition, maybe, after budget. Will this all overcome an economy in recession. Who knows? This company is always unpredictable.

[clocktower] 11/3/2020 14:52

Good Budget for businesses like CRU and small businesses up and down the country.

[clocktower] 09/3/2020 17:22

With so few shares sending prices so far down there are going to be some bargains when the tide turns in a whole host of stocks.

[clocktower] 09/3/2020 08:40

base7, I think the automotive issues are well behind the business now, as that was addressed.

Besides the benefits you mention the drop in the oil price might be a big advantage as well.

Ocado is flat out, so good for the Tote business, I expect.

[base7] 08/3/2020 13:40

We may be benefitting from increased demand for hand sanitisers etc & maybe even from increased demand for food packaging demand but our ill fated (in my opinion ) automotive business must have fallen off a cliff .I suspect we will hear nothing until ,perhaps ,a year end trading update -so let’s hope it’s not another profits warning

[clocktower] 03/3/2020 09:20

Bearing in mind the time scale of shipments that it takes from China to UK and that they might have had Brexit stocks as well, I doubt there will be much impact in the short term, in fact with the huge increase in sales of sanitises with pump action tops, I expect there is a lot of extra demand. Being a supplier to Jeyes and most of the major supermarket chains they will I expect benefit.
Also as you say Aleman, companies will look to source in the UK - how fast CRU can take advantage of the possible swing is another matter. Tooling being the issue.

There might also be an upside for the Blow Moulding part of the business.