Sapan Gai, CCO at Sovereign Metals, discusses their superior graphite test results. Watch the video here.
Starmog- glad to hear you sold, never does well to hold stock you don’t back. Best of luck to you elsewhere
No time to sell, in my opinion. Whatever the reason for sacking, MD is elderly and due retirement in any case.
Difficult 18 mos. owing to global economy as it is, but CRL have made bold changes to successfully reduce costs and position itself well for economic recovery.
Well run business, good long-term track record and potential for good recovery in coming years.
Lakesideman- low float means relatively small trades can move SP. works both ways, once SP begins to recover it will move quickly.
Should anybody wonder why the SP movement this AM, IC has tipped CRL as a buying opportunity.
Nutmegmilk- on the contrary! Though I happen to disagree, difference of opinion quite welcome.
Market selling SLP in response to falling price of precious metals and poor economic outlook in the immediate. In my view, for those looking beyond the immediate, current SP offers a buying opportunity.
The business is fundamentally strong, continues to make profit in difficult trading environment and has huge cash reserves. Precious metals a finite resource, demand forecast to grow rapidly. I continue to add to my position.
Results tell me that as a business CRL heading in the right direction, albeit the SP is not of late.
A return to profitability, more efficient running of the business and sales steady.
Latest acquisitions doing their job in diversifying CRL’s offering, offsetting fall in own brand sales.
Market appears to have unrealistic expectations, during what is perhaps the most difficult business environment in decades. A short term view the cause of low SP and in my view, will recover with improved economic outlook.
That CRL has returned to profitability a healthy sign and I will continue to add on SP weakness with a medium to long-term view of 5-10 years.
I might well have bought your stock, Starmog! Best of luck
Mulder- none whatsoever, at least publicly known. Seems that market expects poor results and whilst I don’t expect anything spectacular, think they will be good enough and mid-long term outlook very good. My view is that market likely to sell on anything less than superb, offering up good buying opportunity. Money to be made for those with the cash and a couple of years.
Many thanks, oldstockbroker. Sounds about right, clearly undervalued
Not much stock of CRL about, so SP tends to move quickly. Hugely oversold and undervalued in my view, suspect I won’t be the only one. Recession shallower and shorter than first forecast- CRL has weathered worse and I believe it will make a big comeback. Multiples to be made here.
Perfectly acceptable update, though revenue a touch lower than expected.
Bear in mind, Avation has NAV about 2.5-3x current SP- hugely undervalued.
Good presentation today. Highlights great work of board as they navigate tough economic climate. My view, CRL a well-managed business primed to recover well once inflation starts to fall.
Bond- agreed for most part, but I believe acquisitions vital to grow and strengthen business.
Brodie and Stone and Emma Hardie each brought in revenue £1.2m and £1.4m respectively in first year, which has successfully offset small dip in CRL’s own brand sales since. CRL diversifying its offering has made it a more robust business in my view.
Any thoughts on what you expect B&S and EH to bring in for CRL coming 3-5 years?
Bond- certainly not time to sell in my view. A time to buy for those with a few years to wait for 90p+.
MrBond007- sales remain as last year, business in profit. Large increase in sales from acquisitions is promising. Market will likely sell off heavily, in which case I’ll buy more ahead of recovery with 3-5 year outlook.
CRL have weathered a lot past 30 years, they’ll weather this no doubt. My expectation is they’ll continue cost savings, growing sales so when inflation reduced results to turn very quickly upwards.
shandypants2- peculiar move, granted but look at it this way- clearly the BOD believe their business worth 125p+
Lakesideman- agreed, expect multiples within 3yrs at current SP.
Half year update in Dec. and expect growth to have continued with some benefit of cost savings in results.
Believe CRL undervalued, worth 90-110p. MD expressed bafflement at SP movement, understandably given huge growth in sales.
Well managed, consistent growth and sold down on poor sentiment. Lipstick index- beauty and personal care a market historically known to do well during recession.
Will continue to increase my holding prior to update Dec. few shares in circulation so when it moves, it moves quickly. Market will decide its a winner after the fact.
Lakesideman- sold off without good cause and currently priced far below reasonable value. MD said as much during last week’s presentation and can’t hurt that Investors Chronicle tipped buy. Expect market beginning to twig. Simply my view, of course.
Worth noting that board had lined up further acquisitions but shelved following sell-off.