Tricorn Share Discussion Threads

[apad] 21/1/2013 13:38

I didn't like the look of Avingtrans. See posts here and on the Zulu thread.
After initial scepticism I bought here both before and after RR announcement.
Looked very hard for culpability but decided that RR contract was purely commercial. Like the look of Av even less now.
Can't find any news about redundancies due to loss of contract.
Not expecting fireworks.
Good luck,
apad

[harry the haddock] 21/1/2013 13:32

oh well i've taken the plunge and bought in here. fingers crossed i've backed the right horse

[harry the haddock] 04/1/2013 17:56

have got this on my shortlist but am also sorely tempted by their rival avingtrans. which one would you go for? or should i bust the bank and go for both - lol??

[rivaldo] 03/1/2013 08:30

A 25k buy was enough to cause another rise this morning.

I note that Westhouse's latest forecasts show 3.1p EPS for this year ending on 31st March, climbing to 3.9p EPS for 2013/14.

It would seem that Chinese production etc is likely to compensate pretty nicely for the RR contract?

[royaloak] 02/1/2013 11:55

24/25p,

sell in quantity 24.25p, buy in quantity 27p.

[apad] 27/12/2012 16:40

Well spotted (1265) Riv.
Ta.
apad

[rivaldo] 27/12/2012 15:41

The price is almost going up on every buy.

Perhaps a mention in Shares Mag, though that doesn't usually have much effect these days?

[daz] 27/12/2012 13:44

Yes, looks like it, a number of small buys today

[shauney2] 27/12/2012 13:03

Thanks for posting Rivaldo.
Maybe tipped somewhere buy the amount of buys?

[rivaldo] 27/12/2012 10:50

Good to see the recovery continuing.

This recent interview has some useful info:



Extract:

""The loss of the contract was a blow but Rolls-Royce is rationalising its supply base. What we have to do is to try and make up the loss with new orders as quickly as possible and we are doing that by looking at growth through a strong pipeline of opportunities," he said.

RMDG Aerospace supplies rigid pipe assemblies used in a variety of applications within the aerospace sector.

Tricorn said in its interims that the division had performed well in the period with revenue up 11% to £2.856m.

It is now looking at the possibility of operating as a second tier supplier to Rolls-Royce and it added that customer specific inventory associated with the contract loss would be run out over the early part of 2013 and this would minimise the impact in the current financial year.

The group's Maxpower Automotive is focused on nylon, rigid and hybrid tubular products for engines, braking systems and fuel sender sub-systems.

The group's new £1m Chinese manufacturing facility is a subsidiary of this division and Mr Welburn said its progress had been encouraging.

After being granted an operating licence by the Chinese authorities earlier this year, the plant and equipment has been installed and shipment of products is expected to start later this month.

Dependent on growth requirements, the company has already factored in suitable additional capacity should it be needed.

Mr Welburn said even after absorbing the costs associated with the new facility, the division had still achieved a pre-tax profit of £0.258m – just £0.105m down on the previous year.

The group's Energy & Utilities operation Malvern Tubular Components was also said to be performing well and reaping the benefits of an investment in new plant and machinery."

[harry the haddock] 19/12/2012 12:45

hi - new boy here.am looking on from the sidelines but this caught my eye in the latest interview
"The trigger has been a letter of intent with a lead customer," he said. "That means we have effectively got a secure revenue stream from day one and that gives us the base from which we can expand with great confidence. I think we have done remarkably well and am really pleased with the progress we have made with the facility."

this seems a real positive when looking at 2013 - they'll no longer be paying out for construction/recruitment/installation/start up costs but will have revenue coming in from day 1. is this correct and if so how much difference will this make in terms of turnover?

[energeticbacker] 13/12/2012 15:19

Yes good value as the Investors Champion note suggests, but not without concerns

[royaloak] 13/12/2012 13:01

Any small cap is risky in this market, but consider that TCN is much better value than AVG.

[electronica] 13/12/2012 12:47

Pretty downbeat new report on TCN from Investors Champion .........



You need to be registered (for free) to read it - but bottom line is that TCN longer term prospects ain't worth the wait.

[apad] 13/12/2012 11:03

FWIW increased too.
Worry about a minnow coping with stuttering economies, but that's why its PER is so low.
apad

[paleje] 12/12/2012 10:23

True PJ1, but management are steady, they are being cautious, if they match last year the PE will be under 6 with better times ahead. Hopefully.

[pj 1] 11/12/2012 17:01

paleje, Maybe yes butI'm on the side lines just incase...

"In the shorter term, the softening global markets seen through the second quarter look set to continue into the second half."

[paleje] 11/12/2012 16:49

Just caught up with that rivaldo, well spotted, I re-entered here on the over sell, good prospects imo, the RR panic was overdone.

[wilmdav] 06/12/2012 15:25

I've given you a thumbs up for that, rivaldo.

[rivaldo] 06/12/2012 08:43

It's worth reading this new interview with the CEO and FD. The CEO states they should be able to acheive "similar underlying profits" to last year, which would equate to around 3.6p or so EPS (allowing for a few more shares in issue).

The comments about China, with a "secure revenue stream" already in place, are also encouraging:



Extracts:

""The general manager is now in place, we have got our team established and equipment is going in.

"We will be in a position to ship our first product later this month but will be looking at continuing to develop it over the next few months."

Mr Welburn said he was delighted with the pace at which the project had progressed, adding that Tricorn had concentrated on getting the timing right in order to match the level of risk with the size of the business.

"The trigger has been a letter of intent with a lead customer," he said. "That means we have effectively got a secure revenue stream from day one and that gives us the base from which we can expand with great confidence. I think we have done remarkably well and am really pleased with the progress we have made with the facility."

Tricorn has established a wholly-owned foreign enterprise (WOFE) allowing the firm to manufacture its products in China and it already has approval to expand the facility further, a move which would make it the largest of its manufacturing facilities.

Mr Welburn added: "It is really important for us when you look at where growth is coming from – over the next four or five years purchases from China will be healthier than anywhere.

"For a small company to be positioned to capitalise on that growth is a really good place to be.""

And:

"Tricorn group finance director Phil Lee said the company was well placed to grow and added: "We are continuing to deliver cash flows to support growth.

"We are getting a pipeline of opportunities in Asia and at home and looking at other ways to grow the group. We are in a good place and, hopefully, increasing the dividend helps to demonstrate that."

[rivaldo] 05/12/2012 15:45

Cheers Wilmdav - 3.1p and 3.9p EPS it is then.

Good to see the share price continue to recover on just a little buying.

[wilmdav] 04/12/2012 23:29

Thanks rivaldo,

Sharescope has updated today to figures you quote.

[apad] 03/12/2012 14:11

The price to cash flow ratios look extraordinarily good value if management can manage to keep things flat. I'm assuming that the price to free cash flow will have the China investment moving out.
apad

[wilmdav] 03/12/2012 13:41

These forecasts are from Sharescope which, unlike Digital Look, appear to have been updated. If met, things could work out very well for us during the next couple of years.