Coretx Hldgs Share Discussion Threads

[diogenesj] 18/3/2005 14:58

Evolution have put out a buy note with a target price of 400p.

[sweenoid] 17/3/2005 13:46

gotta be profit takers to make a market!

no worries about my 350p target

;-)
Dave

[spurrier] 17/3/2005 12:19

Looks like we're going to lose the lot wot we got yesterday.
Sigh....

[sweenoid] 17/3/2005 07:33

Chorion is worth investigating

Using your own "little grey cells" to solve the case before Hercule Poirot has become a national pastime.

Chorion, the company that owns the rights to Agatha Christie's books, has scored a hit with its Poirot and Miss Marple series over the past two years.

The British obsession with "whodunnits" helped boost profits at the company, which also owns the rights to Noddy and the Mr Men, to £4.25m in 2004 from £3.15m the year before. Total sales rose 28.5pc to £23.9m last year.

ITV had decided to double its order for Agatha Christie films from four to eight this year, prompting analysts to increase their sales forecasts for 2005. The forward momentum is expected to continue, particularly with Noddy entering key new markets this year.

The children's cartoon will be shown in the US, China and Japan and analysts are pleased as the company has been talking about entering the US for some time.

This year will also see a full year's contribution from the Mr Men, which will accelerate from the end of 2006. This is when the new cartoon series is on air and the inevitable accompanying merchandise hits the shops.

Chorion controls merchandising contracts as well as the TV content itself. It has decided to end a licensing contract with a third party for Mr Men early, which analysts say is a sensible move as it won't cost Chorion much and it will have complete control over the brand.

Chorion says it could develop one character in its portfolio - it publishes Enid Blyton books, for example - but it is also looking for new ones, after snapping up the rights to Raymond Chandler earlier this year.

The shares rose 20 to 331p, trading on about 19 times forecast earnings with no dividend. That's not cheap, but there should be more to come. Worth a look

link to story


regards

Dave

[sweenoid] 16/3/2005 22:48

I will fly with that

;-)

regards
Dave

[dehavilland mosquito] 16/3/2005 20:53

Clearly things are ticking along nicely, and this morning's news of further crime contracts is very welcome. But it is the childrens' stuff which carries the appeal. Noddy seems to be invading: he is opening a local garden centre soon, and now does big stadium gigs. Various friends children love him. And this summer he begins his holidays in the USA and Japan (Just as Thomas and Bob the B are needing a hard earned rest).

For those who consider the company overvalued, I would suggest that only this year will the merchandising wagon get on the road, not just in the UK but around the world. If this takes off, so will the profits, and the rate of climb may be hard to predict (remember what happened with HIT Entertainment). That the company have Mr Men to follow up, and an expanding crime arm, and then more profit to buy more rights, just adds to the appeal. At the outset I was sceptical. But they seem to have done it all with a deft touch so far, and they deserve shareholder support in what could become a worldwide British success story.

[rcktmn] 16/3/2005 20:43

Agree with Coroon.. I need £4 to get into profit..still some way off. At this growth rate, if it's sustained, we should get £5 in 12 months time (imho)

[sweenoid] 16/3/2005 17:00

MASSES of press should follow tomorrow

we shall see

;-)

Dave

[coroon] 16/3/2005 16:40

I bought my COR on the 23/03/2001 @ 40.5p was told to get in on a dip in price, yes they had been up to around 44p.Watched them drift lower and lower hoping they would recover cos I did like Urbium with Tiger Tiger brand and other late night venues,then came the split,I need COR reach £4.70p and UBM somewhere over £12.00p to break even.

[rallyman2] 16/3/2005 15:31

nice results,would have liked a divi but with the mr men purchase it was not going to happen ,been a holder since pre split but filled my boots at old price of 5p which equates to 150p in the new share so im more than happy and will hold for 420p+ best of luck to all and i still hold urm which has upside also

ps cor pre split was as high as 44p thefore today cor = 11p and urm 15.5p which makes 26.5p so there could be some in the red if they did not average down during the fall ?

[diogenesj] 16/3/2005 15:07

Well, I hope you're right, Spurrier. Bought mine last August at 224p, so I'm well pleased, if a bit puzzled. :-)

[spurrier] 16/3/2005 15:04

Given that a few - just a few - punters are STILL in the red (not me I'm glad to say) with COR after purchasing just before the split I cannot see, in purely business and turnover terms, how the COR of today, vastly improved with major and accumulating assets, can compare with the COR before the split which stumbled along with a little bit of a not-yet-marketed Noddy and the income from Christie books and older films and videos. If most people are now in the blue, or at least approaching that point, with COR I cannot see what there is to stop it from going onwards and upwards another 20-25% (£4.00+).

[diogenesj] 16/3/2005 14:14

Net tangible asset value is negative, however. The assets are mainly copyrights, and when I read that the Mister Men copyright (for example) is being written off over 54 years, I can't help wondering whether this is a realistic approach. Fine works of literature they may be, but will those little characters really have any residual value in the year 2059?

[scburbs] 16/3/2005 14:07

Whilst PE is high, NAV is £2.85 per share and given the success Chorion have had with revamping Noddy on a worldwide basis I would suspect that the carrying value of Noddy in the accounts is much lower than its market value. On this basis £3.24 does not seem particularly expensive.

[diogenesj] 16/3/2005 14:03

Iriwal: sorry, I misread my own notes and got the basic eps wrong. I've edited my post above.

[yump] 16/3/2005 14:01

DiogenesJ
I have same thoughts as you - have been holding for a long time, but when you read the bullish profit comments and then see the eps it doesn't look a bargain now. If the forecasts jump to give eps growth of 50% then perhaps more like it.

Before anyone says anything, I know PEG isn't everything, but its a guide and it gives a margin of safety. eg. FMJ forecast to grow at 100% + on a p/e less than 10 for the forecast - thats what I call safe.

[iriwal] 16/3/2005 13:32

DiogenesJ - the PE number posted by CCNP is broadly correct. By way of background however ... when company (audited) results are published, the brokers usually trawl through them and make adjustments for exceptional items, treatment of goodwill, etc. so they arrive at a like-for-like comparison on a year-to-year basis and across a spread of companies operating in the same market sector.

Last year (that is on results to Dec 2003), the brokers set the earnings per share at 7.09 and were projecting growth to 13.7 for 2004. Based on what we've seen this morning, my guess is the brokers will adjust the eps to 9.5 to 10 pence. Accordingly, the latest historic PE will be around 35 and PEG in the region of 1 to 1.2.

IF these numbers are right (and I'm no expert in these matters), then its possible COR will soon lose some of its shine. Shame really; it's been one of my favourite shares for the past 18 months.

[diogenesj] 16/3/2005 12:58

(Edited)
CCNP. The current historic PE is either 324.5p (price) divided by basic eps 7.10p = 45.70, or 324.5p divided by 'normalised' eps 12.4p = 26.

The latter is the fairer calculation, I think (the price rise since my post above has increased it from 25x to 26x).

[ccnp] 16/3/2005 12:42

srpactive - PE will decrease to reflect the current share price ? agreed

PE now 47

I still hold 10k but you can have them for my target of 347p. which nets me zero CGT on Urbium and Chorion from the good old days. Good luck to those buying in now. I will be back after the 'normalisation' as it is a stock with good potential frustrated by a looney valuation

[diogenesj] 16/3/2005 12:35

OK, chaps, benefit of the doubt, perhaps. But it's always a bit worrying to see management bragging about the size of the company and the profits, while failing to mention that these have been bought by the issue of a huge number of new shares (and that the growth at a per share level is barely in line with inflation).

[spurrier] 16/3/2005 12:18

Seems like the analyst meeting is a hit and price moving up nicely. Am very happy with the way COR is developing and see plenty of upside and eventually divis....

[jordaggy] 16/3/2005 12:17

And just as an added benefit - listed on AIM - tax benefits to be had as well ! - if held for 2 years...

[bargain] 16/3/2005 12:17

Yup, IMO this Management is well worth backing ...