Tuesday 23 October 2018

Fond memories - not really!

A brief blog post from me today. It's a company whose shares I don't hold, but have in the dim and distant past. Talking of dim, I remember taking a loss of 27% back in 2004. More positively and looking at the current share price that could have been a lucky escape? We'll see in the fullness of time.

The company in question is Coral products. If memory serves me correctly, I vaguely remember them producing CD casings? Do you remember CD's? Yep, that's why the share price went into freefall I think? Like most investors my memory becomes a little hazy when recalling the duff investments. Anyway, that was then and this is now. Perhaps Coral products is about to rise from the ashes? If they don't go under it's surprising how many companies rebuild and prosper. They can be the most lucrative purchases if you catch them near to their recovery path.

Anyway CRU released an encouraging trading update today and the shares are up 5% as I type.

https://www.londonstockexchange.com/exchange/news/market-news/market-news-detail/CRU/13838153.html

Firstly, I should point out that they're still  a specialist in the design, manufacture and supply of injection moulded plastic products. So what are the all important figures?

T
he market cap is just over £8m, and the results to the end of April 2018 showed a loss of £370,000 on revenues around £23.5m, although the underlying operating profit was £879,000 with earnings per share of 0.84p. Net assets came in at £13.2m, but just over £7m of that is goodwill and intangibles.


The company does generate cash, but had just £471,000 in cash on the balance sheet against approximately £6m debt back in April. Gross margins are ok at around 35%.


I
n summary, it's not one that interests me too much at the present since I always compare the financial metrics, market cap and prospects against company shares I already hold, and at the moment I'd tend to add more to some existing holdings rather than add CRU.


However, others may beg to differ or wish to do far more research than I have.

Incidentally, on the subject of plastics, if you haven't read my post on Biome Technologies then you may wish to do so by clicking the link below:-

http://michae1mouse.blogspot.com/2018/09/buy-one-get-one-free-bogof.html

I hold.

twitter: @michae1mouse






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