cosmos
12 Oct 2017
Bottom line. The share buy back programme in that it takes out stock well below intrinsic value offers a great value creation opportunity for long term holders. I have used the drop to add to my position
cosmos
12 Oct 2017
Sorry. There seem to be some technical gremlins...
cosmos
12 Oct 2017
Part2: and
cosmos
12 Oct 2017
Bowman. I couldn't agree more that the drop is overdone and has opened up a significant delta between price and intrinsic value. In today's "rich" market there are few companies that offer such a compelling mix of valuation metrics. Based on 2016 historic financials CCT is trading at c. 4x EBITDA,
Bowman
11 Oct 2017
Misguided optimism Nasty RNS this morning. I had not expected the (apparent) indirect effect of the US Toys-R-Us move, with other retailers (apparently) cutting back on purchases.I do not now expect an early recovery back to the mid 400's, but I am not selling just yet, since the current drop appears overdone in view of the drop we have already experienced.
Bowman
20 Sep 2017
Re: Major Customer It seems the Toys-R-Us move only affects the US business, so the Toys-R-Us elements outside the US are (apparently) unaffected. The non-UK sector contributes 24% of the total CCT revenue, but I cannot find how much of this is from the US in general and Toys-R-Us in particular, so it seems CCT's exposure to Toys-R-Us should be fairly small.I have read that facilities are now in place to ensure payment for supplies is made, so CCT should not be materially affected. It seems that there is an element of over-reaction, with potentially the RNS issued by CCT being viewed as a mild profit warning made under cover of a known event.Time will tell but I would not be surprised if the SP recovers the lost ground in the next week or so.
winningstreak
20 Sep 2017
Major Customer The question has to be: How large a part of CCT's sales were to the 'majorcustomer' currently in financial difficulties (customer may end up bankrupt). Now, take a scenario where the major customer is responsible for 20% ofCCT's sales (20% of £120m= £24m), and as such due to its financial difficulties has not paid bills for say 3 months, then the amount due to CCT could be as high as £6m. Were this to be the case and were it the case that this sum has to be written off, then the impact on CCT's profit would be very nasty. The above scenario is of course as yet hypothetical, and the figures (percentage and period-length) could be way out, but it does make me feel uncomfortable that we have to wait some time for an uncertain outcome,with the uncertain financial impact which could be rather large.IMHO,ws
sage in the hills
20 Sep 2017
Re: Sensible Re Toys R Us problem ........ i hope and expect that the main UK outlet for Christmas market will be via enhanced activity through Smyths, WHSmith, Supermarkets, and direct on-line ordering......Would these plug any gaps successfully ? ....SAGE
winningstreak
20 Sep 2017
Re: Sensible Indeed, if CCT is owed a large sum, then that could be bad news to come.ws
Bowman
20 Sep 2017
Re: Sensible WS,Agree, I am sure they will find further outlets, since somebody must replace Toys-R-Us (if they actually disappear). I think the worry will be if CCT has not been paid for the stock they have provided and hence this debt may have to be written off, meaning a hole in the CCT revenue/profit for the year.
winningstreak
20 Sep 2017
Re: Sensible Bowman - Indeed, timing was unfortunate, but not to worry, myinvestment is not large, and surely CCTwill surely find a replacement for this customer as the consumer-interest will still be there.IMO,ws
Bowman
20 Sep 2017
Re: Sensible WS,Unfortunate timing for your purchase. The Toys-R-Us situation was unforeseen, and potentially causing an overreaction on the CCT SP this morning. Hopefully any impact on the 2018 results can be minimised and the SP can recover. The important aspect will be any threat to the dividend, which could accelerate any further decline in the SP, as would any sign of a decline in Christmas trading performance.However, as you say, a long-term hold, so with luck there is a good chance that CCT can recover over the coming year.
winningstreak
19 Sep 2017
Re: Sensible Re my last message, please note error in last sentence,for Charter Group please read Park Group. Sorry about that, no idea how the word Charter got into my mind.ws
winningstreak
19 Sep 2017
Sensible I am on the look out for well established companies with a sensible share price, on a sensible PE-ratio, paying sensible dividends.Character Group appears to fit those criteria. I have bought somethis morning at 512p for long term hold. Also bought Charter Groupthis morning, on the same principle.Cheers, ws
Blanketstacker
15 Sep 2017
CFO sacked... ...perhaps more bad news to come with the interims c1 December?
