Listen to our latest Investing Matters Podcast episode 'Uncovering opportunities with investment trusts' with The AIC's Richard Stone here.
London South East prides itself on its community spirit, and in order to keep the chat section problem free, we ask all members to follow these simple rules. In these rules, we refer to ourselves as "we", "us", "our". The user of the website is referred to as "you" and "your".
By posting on our share chat boards you are agreeing to the following:
The IP address of all posts is recorded to aid in enforcing these conditions. As a user you agree to any information you have entered being stored in a database. You agree that we have the right to remove, edit, move or close any topic or board at any time should we see fit. You agree that we have the right to remove any post without notice. You agree that we have the right to suspend your account without notice.
Please note some users may not behave properly and may post content that is misleading, untrue or offensive.
It is not possible for us to fully monitor all content all of the time but where we have actually received notice of any content that is potentially misleading, untrue, offensive, unlawful, infringes third party rights or is potentially in breach of these terms and conditions, then we will review such content, decide whether to remove it from this website and act accordingly.
Premium Members are members that have a premium subscription with London South East. You can subscribe here.
London South East does not endorse such members, and posts should not be construed as advice and represent the opinions of the authors, not those of London South East Ltd, or its affiliates.
Started: turnkey17, 13 May 2024 18:56
Last post: turnkey17, 13 May 2024 18:56
Each day :)
Started: turnkey17, 9 May 2024 08:58
Last post: turnkey17, 10 May 2024 08:56
Golden cross confirmed
Death cross was April 2022
26p eps now forecast
12.9m of cash
Started: Florence141414, 11 May 2023 10:34
Last post: Florence141414, 11 May 2023 10:34
Resilient H1 results under the circumstances. Cash is lower as they paid down some supplier liabilities but no effect on real tangible asset value. Dividend and good outlook maintained for H2.
I see companies like this as dealing with cyclicality in two ways. You have the general economic cycle to contend with but also, within that, the product cycle of the industry. Once in a while a company like Character are going to hit a hot product and have a bumper profit year of 10-15m. When that happens you'll double your money from these prices quite comfortably. The only question for me is whether that happens next year or in five year's time. The really attractive thing about Character in particular is that the balance sheet is so strong that there is almost zero threat of debt or dilution between now and then.
Started: Giraffe4444, 4 Sep 2021 19:43
Last post: BeardedDragon, 28 Dec 2022 17:07
Cannot understand why still no chat despite massive Director Dealing today, presumably for a good reason.
Giraffe - I agree. Will be interesting to see how the global supply chain problems affect Character given sourcing from China etc. Toy retailers are expecting shortages and price rises prior to Christmas. Hopefully they’re working hard to mitigate the risks!
Am amazed there is absolutely no discussion on this company. Postman Pat is popular enough. Have held since March and it has always stayed in profit. Will be buying more. Always a demand for toys, I really like this share. Thoughts anyone? And I mean anyone?!
Started: nkhatt, 17 Jan 2022 16:08
Last post: nkhatt, 17 Jan 2022 16:08
Any thoughts on the RNS today? Forager capital disclosed ownership of 6.88% in CCT. I believe Forager was already an investor in the company so cant tell if they increased or decreased the holding. Would be interesting to know.
Started: urbansea89, 15 Dec 2021 22:15
Last post: urbansea89, 15 Dec 2021 22:15
Impressive numbers considering all the logistics issues that needed overcoming. Going the right way and so steady. Well done all
Started: jimmy1961, 29 Apr 2021 11:53
Last post: shan, 29 Apr 2021 16:27
quite brilliant company
solid results
Excellent half year results - truly outstanding. increased sales, profits , loads of cash for buybacks and tripling of dividend.
Last post: jimmy1961, 29 Jan 2021 23:51
Peppa Pig Licence extension
Started: turnkey17, 8 Jan 2021 00:27
Last post: turnkey17, 8 Jan 2021 00:27
property sale
Started: MagnaOpera, 11 Dec 2020 08:38
Last post: MagnaOpera, 11 Dec 2020 08:38
Well done Character for what has been a challenging year. This company flies well under the radar of most investors but have to say BOD are solid here.
Great news about potential contract extension with Hasbro (who bought out Entertainment One).
https://toyworldmag.co.uk/2020-12-10-characters-year-end-results-released/
Started: jimmy1961, 20 Nov 2020 23:11
Last post: MagnaOpera, 11 Dec 2020 08:32
Someone must have got wind of the good results just released - or assessed the general sentiment towards the toy market which seems to be positive at the moment.
I know this link is old but covers most of the reported 2nd half period and provided an inkling of what was to come when reported back in July.
https://toyworldmag.co.uk/toy-sales-up-16-during-first-six-months-of-2020/
Why the rise this week?
Last post: Majorboy, 20 Nov 2020 15:49
Keeping a close eye on this. P.e. is insane and balance sheet is very healthy. Going to email the company and see if they'll impart how badly inventory has been affected by corona. Seems like crazy value down at these levels.
Last post: Okonomen, 22 Feb 2020 09:12
Anyone who knows why the stock has plummeted? Is it due to CCT sourcing from Asia, i.e. corona virus concerns?
Started: danawinner, 17 Jan 2020 08:56
Last post: Majorboy, 17 Jan 2020 09:42
This morning's RNS looks very much like a thinly-disguised profits warning.
Peppa Pig didn't bring home the bacon over Christmas then?
I still think that they are missing the opportunity to produce a Peppa Pig luncheon meat slice.
Started: debeege, 13 Sep 2019 09:13
Last post: debeege, 13 Sep 2019 09:13
And 8% dividend maintained. Only slightly below expectations, was £5.5 before all this so seems priced in.
Started: snicklin74, 26 Aug 2019 16:10
Last post: snicklin74, 26 Aug 2019 16:10
Bought in on Friday after market overreaction but issue with LSE not showing all trades - although they do show on HL.
Summed up nicely by Bowman on iii: https://www.ii.co.uk/discussion/t/reason-for-cct-price-drop/1149940
Last post: SteveGobs, 23 Aug 2019 14:56
Wow.. wtf.. Argh bad day for my portfolio.. this is it for me i'm out.. putting my money in PRD.L quick upside CEO owns 50% of company 5m MCAP 3 assets, news incoming extremely soon... huge upside potential.. CEO said DIV will be paid.. insanely low in point before news starts.. wont be long to get in. easily could be £1 by year end huge upside no downside at these levels.
Thanks for really useful info and discussion. Will watch and wait....
Hi. threeputt. Bitter sweet day. I have stakes in both ETO and CCT. I must admit that Hasbro (a toy maker) bidding for ETO is not a scenario I had envisaged. The talk had always been of the likes of Netflix, etc, which would not have been less threatening for CCT. But we are where we are. Part of CCT's relatively lowly rating has always been the fact they don't own the original Peppa licence. Today's fall brings the company's valuation yet lower. I obviously don't know how this plays out and expect management to put out a statement on the implications. I believe that CCT have exclusivity on Peppa (in their markets) for at least another 2 years, so there is no immediate change. Today's fall also takes the valuation down to less than 3.5x EBITDA / 6x P/E historic. B/S is cash flow positive. All that said, Peppa is obviously a key line. My gut feel is that the market is over reacting (as so often), and I have top sliced a small portion of my ETO holding (it's trading above bid price on the expectation of a counter bid) and re-invested here. The dream scenario would obviously be a successful counter bid from the likes of a Netflix. One can dream. Alternatively, it may be expedient for Hasbro to come to a third-party manufacturing deal with CCT in their markets - where they have done a good job. let's see. Frustrating day...
ok just read on 'the other side' about takeover of eto (which I hold woohoo), and possible impact of Peppa Pig, anybody want to discuss the possible impact here
not in here these days but always hold an interest. Fallen 20% today with no obvious reason, anybody know why ?
Started: Peterson, 14 Sep 2018 09:13
Last post: Peterson, 14 Sep 2018 09:13
Lovely trading statement this morning. Character has "witnessed a return to its previous growth pattern during the second half. With Character's UK domestic business delivering record sales, the trading results for the financial year ended 31 August 2018 will comfortably reach market expectations." More importantly "As a business, we feel confident of the prospects for the autumn/winter trading period, which includes the all-important Christmas season". Preliminary results are due out on the 29th November.
I say again that this is such an underrated little company. Exceptional ROCE. A fantastic track record of dividend growth. All achieved with an unlevered balance sheet. If we can get some consistent revenue / profit momentum to take us beyond the Toys R Us scare the shares should fly on a 12-18M view. At under 5.5x forecast EBITDA / 4% yield / 8x PE the current valuation is a steal by all objective standards...
Started: Peterson, 19 Jan 2018 11:32
Last post: Peterson, 19 Jan 2018 11:32
threeputt. I hear you! Re. mgmt comp. The certainly feels high for a smaller co., particularly given recent trading. On the other hand I like the fact that Admin expenses were down by almost �1m in 17 vs. 16. C suite salaries aside they seem to run a tight ship. Re. Toys r Us. Again I don't disagree with the concern. But I would argue that a large part of this is driven by the switch in retail habirs from traditional retail to offline, and not necessarily in the demand for traditional toys per se i.e. this is obviously bad news for stores but less so for the toy makers. They just have to find alternative routes to market via online. And they are doing so otherwise the revenues of CCT, let alone Mattel, etc, would have collapsed. That said, there is definitely a risk from a continued switch by kids to "digital" distractions away from more traditional toys. This is a risk but from what I have read it has been somewhat overstated and seems to be impacting the pre-teen age groups less, in which I believe CCT concentrate. At the end of the day CCT is definitely at the riskier end of the spectrum. I just sincerely believe (that barring an unforeseen disaster!) the downside here is really very limited at the current valuation. And arguably the LT upside is high. I see it as one to tuck away, enjoy the divi and forget about for a year or two...
Started: Lesville, 19 Jan 2018 11:18
Last post: Lesville, 19 Jan 2018 11:18
I do agree Threeputt that the first half profitability will suffer as a result of Toys R Us CVR in the USA and Canada and subsequent closures in the UK, however this has been well flagged by Character. The toy market will adapt and others either through bricks and mortar stores or online sales will be the beneficiary�s of Toys R Us over extending of physical stores. With the launch to come of more of the companies best selling toys and the distribution rights for Pok�mon for the UK I remain confident in the longer term prospects for Character. Looks like the market now agrees as we are back to yesterday�s share price.
Started: Peterson, 19 Jan 2018 09:59
Last post: threeputt, 19 Jan 2018 10:27
points taken. I used to be a fan of Character and I made a lot in the lovely rise in 2015 from �2.50 to �5. Since then it's stalled and I just don't like the market atm, the exit of Toys 'r' us is symptomatic imo, From this mornings trading update I picked up on this element: "whist the Group's performance for the half year to 28 February 2018 will reflect the overall lower trading compared to 2017, the Board remains confident that, absent any major external factors, the Group will return to its previous growth pattern during the second half of this calendar year and this will be fully reflected in the strength of the trading for the financial year to 31 August 2019" That read to me like a warning for the first half of the year but some possibility for the 2nd half. I do think this can do well in the future but not for me right now, I also recently read this which further turned me off them: "the following directors received 'performance bonus' in 2017 of the following Mr Diver just over � 1 million Mr Shah 723k Mr Kissane 523k In 2016 the amount was similar I have no problem if they are performing , clearly the last 2 years they have not been performing so how can they justify the excessive bonuses" GL
With the greatest respect threeputt if it was a profit warning the share price would be down 20%+. That's how it goes in the current market. I think the problem with CCT is that the market struggles to understand it. And more importantly at �90m it's below the radar of most institutions / brokers. Only Panmure seem to cover and their last update was (I believe) in April 17. What's interesting is that at the time they had a target price of 635p. And that is not as insane as it seems because on the face of it CCT has some fantastic financial attributes. Chief amongst these is that the business is a veritable cash machine, which has grown dividends from 6.6p in 2014 to 17p in 2017. All this whilst staying net cash positive. ROCE is off the charts when measured against book equity. And even to market cap it is in double digits. Trading at c. 5x forward EBITDA I think this company is a steal, unless you believe the traditional "non-digital" toy sector is about to implode. So far there is no evidence of this. If they can just get back to some steady top line growth this share will fly. In the interim the growing dividend and value enhancing share buy-backs are a bonus. NB: I run a pretty concentrated portfolio - 15 positions. And this represents 5%. A bargain in what has become a relatively expensive market. Of course all in IMHO
Started: Lesville, 19 Jan 2018 09:23
Last post: threeputt, 19 Jan 2018 09:28
read like a profit warning to me, sell
Much as expected but a bit short on numbers, trading in the first four months as expected does not actually tell us much. We will have to wait for the results in April to learn more. Still happy to hold as directors are confident of growth prospects going forward. Difficult to understand the mark down this morning with only 640 shares sold at time of writing.)
Sells going through at almost 2p above quoted bid. Hope that this bodes well for tomorrow�s AGM as I have some way to go before break even. Hopefully we will have some good news of Xmas trading and an update relating to the supply of product to Toys R Us. Further out I remain positive that Character will resume growth and profitability so in the meantime will hold for the dividend.
Last post: RevoltingPeasant, 11 Oct 2017 18:37
Simon Thompson in Investors Chronicle on line has this as a hold after today's RNS. The fall is overdone in his view. Also, I note that the share buybacks seem to have started again today, presumably taking advantage of the fall. 120,000 bought back today. There is plenty of cash on the balance sheet to fund this. Should help to keep a floor under the SP. I'm holding.
Paul Scott has a piece on it this morning https://www.stockopedia.com/content/small-cap-value-report-wed-11-oct-2017-cct-quiz-vtu-phd-227338/
Anyone understand the heavy fall?