gretel
07 Feb 2017
Large buy trade 1.3m shares just bought at 140p.....and the share price has moved up nicely.
gretel
02 Feb 2017
New Edison note - potential upgrades New note from Edison - they go for 11.6p EPS for the year about to end, and 13.1p EPS for the coming year:[link] the potential for upgrades assuming current currency levels continue.There must be a strong chance of such upgrades:"Carclo has announced that H217 trading remains strong and the outlook for the full year is in line with its expectations. Growth is being driven by the two larger divisions, Technical Plastics (TP) and LED Technologies, while the Aerospace division is experiencing stable trading conditions. We leave our estimates unchanged, but note potential currency upside should foreign exchange rates remain at current levels for the remainder of FY17"Thebuzz, from memory the next triennial pension review for CAR isn't due until March'18. In that time bond yields etc may well have fully recovered to prior levels - which they're already well on the way to doing. And even if additional payments are due under that review, they won't be payable until the year ended 31/3/19. It really shouldn't be a factor until much nearer that time.
The buzz
01 Feb 2017
Re: CAR has growth company profile No dispute that there is great growth potential, but do not lose sight of the pension fund liabilities. The assumed discount rate used in the March 2016 results was set at 3.5%. The recent final results from Porvair has used a discount rate of 2.9%. This means that one would expect the current £23,2m Carclo pension fund deficit to be noticeably larger in the March 2017 results if Carclo also adopts the 2.9% figure. So not only will no dividend be payable this year, but there will be a bigger pension deficit that at some time may require additional funding.The B
gretel
01 Feb 2017
CAR has growth company profile Underlying EPS shows terrific growth - 123% growth in 4 years: to Mar'18 - 12.95p (forecast) to Mar'17 - 11.45p (forecast) to Mar'16 - 10.1p to Mar'15 - 7.9p to Mar'14 - 6.1pIf it weren't for the previous management's forays away from the core business, plus the dividend issue (which most really aren't bothered about due to the immateriality), then given such growth CAR would be trading on a P/E of 18-20 or so, against the current 10.2.The profile of the business is that of a growth business expanding worldwide at the express wishes of its major customers who wish to have locally sourced, high-spec production from a reliable provider.
mnamna
31 Jan 2017
Re: update. Hello Frank,I share your concerns over debt and pension. Perhaps I read too much into the announcement but I noticed that the initial increase in pension deficit is referred to as 'significant' whereas the recovery expected due to recent changes in the bond yield is 'modest'. Unfortunate wording for anyone expecting a rapid dividend restoration. But on balance I'd prefer debt paid down and a share price of 190p than it continues to trade in the current range with a divi.'BT are at least 500 times larger than Carclo. If BT cant manage their overseas businesses how do we expect a company /minnow like CARCLO to manage their French/Chech/Chinese /Indian and other subsidiaries. 'Ah. That will be because luckily CAR has the same number of CEO's as BT does and he will find it at least 500 times easier to detect any fraud in their overseas businesses. Bigger is not always better. Overseas labour just got a lot more expensive thanks to the devalued pound. Overseas profits just got a lot bigger though. I understand the idea of manufacturing in this country - for sales in this country. I think the US, Indian and Chinese ventures are primarily selling into local markets though (this is clearly stated for the US and Chinese operations). I suspect local manufacture is going to become a much bigger issue in all these markets in the near future if The Donald is anything to go by!cheers
gretel
31 Jan 2017
Re: Excellent trading update today Peel Hunt have today reiterated their Buy and 190p price target:[link]
Frankseluk6
31 Jan 2017
update. The update looks on the face of it to be ok. But the pension deficit and debt are worrying.And one other point of concern.....BT. Announced a week or so ago that they had lost at least 1/2 billion pounds due to fraud/miss management in their Italian Subsidiary. BT are at least 500 times larger than Carclo. If BT cant manage their overseas businesses how do we expect a company /minnow like CARCLO to manage their French/Chech/Chinese /Indian and other subsidiaries. They would be better concentrating the business in one country. Overseas labor is not as cheap as it was. And the wasted management time travelling could be better spent by choosing facilities that coped with the current business and for forceeable expansion. Jmo
gretel
31 Jan 2017
Excellent trading update today - "strong" H2 trading - in line with 11.5p EPS consensus - US, Indian and Chinese expansion all going well - intriguing positivity about long-term prospects as regards further growth - a hint about bond yield increases as regards the dividendAnd interestingly, an investor event today to spread the word about the LED car lighting division. There must be a lot to shout about, as this is most unusual for CAR:[link]
r21442
30 Jan 2017
Re: breakout where did THAT come from - has someone seen the trading update? Wouldn't surprise me.
shugg1e
30 Jan 2017
Re: breakout Was indeed a fake out i sold at 134p. Looking to get back in at 110-115p range fingers crossed
gretel
22 Jan 2017
Trading statement due soon The next trading statement is due in the next 2-3 weeks (last year's was on 4th February).CAR are now almost on a single-figure P/E for the coming year, with an encouragingly good value PEG of 0.76 and a uniformly encouraging outlook across all the divisions and global growth bringing in currency benefits from the prost-Brexit weakness of the pound.Here's a new article about the recent American acquisition:[link] medical molder Carclo expands in northeast United StatesBy: Clare Goldsberry in PLASTEC West,Injection Molding,Medical on January 17, 2017Carclo plc, an injection molder headquartered in Ossett, UK, recently purchased Precision Tool & Die (PTD; Derry, NH) through its Carclo Technical Plastics division. The deal, worth more than $6 million, expands Carclo’s U.S. footprint, adding a base of operations in the northeast to continue its growth in the region.CarcloPresident and Division Chief Executive Mark Charbonneau said, “The acquisition of Precision Tool & Die will not only bring synergy to both PTD and Carclo’s customers in expanded capabilities marrying prototyping, tool making and volume manufacturing, but it will also enable Carclo to grow in the region close to its customers.”PTD operates 14 injection molding presses ranging from 28 to 400 tons in a 34,000-square-foot facility, which also has Class 10,000 cleanrooms. The company offers precision mold manufacturing as well as a variety of secondary operations, such as ultrasonic welding, automation, assembly and packaging for medical, optical, automotive and electrical applications.“We’ve seen significant new business and opportunities from major OEMs in the region. It was only natural that to continue our growth and follow our philosophy of being close to our customers we target the Northeast as our next logical step,” Charonneau added.Carclo Technical Plastics specializes in injection molding and contract manufacturing services for medical and optics applications. Its largest segment served is diagnostic disposables with significant offerings in respiratory, blood management, ostomy, ophthalmic, women’s healthcare, and surgical products. Carclo employs more than 1,000 employees at eight plants across the United States, United Kingdom, Czech Republic, India and China.MD&M West and PLASTEC West attendees can visit Carclo Technical Plastics in booth 1515 and Precision Tool & Die in booth 1495. The events come to Anaheim, CA, on Feb. 7 to 9, 2017. "
leperky
12 Jan 2017
Re: breakout Breakout...3 out of last 4 days have been blue and have been well above (15 day) average vol.
shugg1e
11 Jan 2017
breakout breakout or fakeoutneed to see more volume
gretel
11 Jan 2017
Good news from partner company Good vibes this morning from CAR's VR315 partner Vectura:[link] important part of our news flow for 2017 remains VR315, our generic Advair® Diskus® programme partnered with Hikma. This programme remains under FDA regulatory review and we continue to work closely with our partner through this process. VR315 has a GDUFA goal date of 10 May 2017 and is one of only two generic Advair® Diskus® ANDAs publicly filed and accepted."
gretel
09 Jan 2017
Moving up, Peel Hunt have 190p target Continuing to creep up slowly, with buying at 137.56p today.Peel Hunt have reiterated their Buy and 190p target:[link] independent analyst says Buy now - forecasts for the year starting soon put CAR on a near single-figure P/E and a very good value PEG of only 0.8: 2017 2018 Date Rec Pre-tax (£
EPS (p) Pre-tax (£ EPS (p) N+1 Singer 06-01-17 BUY 10.60 11.13 12.60 12.45 FinnCap 05-01-17 BUY 10.70 11.30 12.60 12.80 Edison 05-01-17 None 10.66 11.60 12.75 13.10 Peel Hunt 09-12-16 BUY 10.70 11.73 12.97 13.34
