The latest Investing Matters Podcast episode featuring Jeremy Skillington, CEO of Poolbeg Pharma has just been released. Listen here.
strongly agree with you, @porter_.
1. a few points to add: undersea cables are being laid at an exponential rate by tech titans seeking proprietary internet infrastructure.
2. ‘russia’ (the inverted commas are because the kremlin denies it, just as they denied the troop build-up on the ukraine border 🙄)m is chopping up cables wherever it thinks it can get away with it.
3. the uk royal navy and raf have recently invested in coastal-patrol capabilities to protect the digital and energy infrastructure that serve our island. installation and maintenance of that infrastructure is the domain of the private sector.
4. despite having to reduce the returns to energy co.s at auction, the uk continues to invest heavily in offshore-wind capacity.
these factors mitigate in favour of either a.) a tech titan, b.) the mod or govt or c.) a big yield-hunting investor either i.) providing massive maintenance contracts, or ii.) launching a takeover bud.
so solid are the fundamentals that porter_ has already set out below (for which reason i shan’t rehe**** them here) and so clear is the chart, that i would personally vote against anything less than 116p for my shares. this little gem is that good.
This is beginning to look very exciting. We have here that heady ****tail of value and growth. *Rubs hands in glee.* Someone has had a sell order at 14p for a very long time. But at 11.30am on Wednesday someone else put in a sizeable buy of perhaps 200,000 shares and more that filled the last of that sell order. We spiked above 14p for the first time this year.
It was the latest of a few lumpy buys that have been dropped in this month: https://finance.yahoo.com/quote/CAR.L/history/
If we can close the week and then the month at or above 14, then it could be very propitious for the technical picture of this share. A short squeeze could well be under way. It’s early days in the process - this is a multiyear play based on Carclo’s presence in some key growth markets - but I see a volcano rumbling here. This share is on a 4.5x earnings multiple for goodness’ sake!
Some interesting news to digest:
https://www.marketwatch.com/press-release/led-secondary-optic-market-booming-with-rising-demands-and-massive-opportunities-2023---2028-2023-02-22
(This one doesn’t mention Carclo by name but it is a player in the double-shot moulding market.)
https://www.marketwatch.com/press-release/2-shot-injection-molding-market-industry-analysis-database-for-period-from-2023-2028-2023-02-12
GLA and DYOR!
Pressure is building… The bid is 12.5p and the ask 17p. That’s a 26% spread. The price suppression feels to me again to be part of the technical picture. Carclo, as of next Wednesday, will not only be above the trendline on the weekly chart but also above the monthly. This is potentially huge. And the buying pressure reflected in the ask price is to me a very strong indicator that we are sitting on a volcano that is about to explode.
BUT DYOR and GLA
Hi all. New here. Long-time lurker, first-time poster. This is an exciting juncture for Carclo and several other businesses I’ve been watching that have taken a big hit in recent times (PHE and TGP on the LSE and NANO on the TSX). But it’s Carclo I find most compelling of a very interesting bunch.
The share hit a high (a classic double top) in January 2013 and went on a dramatic slide. When that downtrend was broken, in December 2014 and at about 90p, it went on to double over the next 30 months to about 180p, before resuming its downtrend. That slide that commenced in June 2017 has endured five-and-a-half years. It hit peaks in May and November 2021 and September 2022, without ever breaking out.
Yet next week, just by dint of time, (barring a calamity in price today) the share looks like opening above the trendline on the weekly chart for the first time across those 67 months. That is quite important, and the share - which has provably traded very technically - looks like it is making a bit of a move today.
It would take nothing to double in price (to where I initially invested with my SIPP and family funds) and that is why I have bought again today.
Still more intriguingly, though, are the Fibonacci levels in this recent downtrend. A retracement to the 50% Fib would take it to 91p, tantalisingly close to the several equal highs at 94p, and to the ICT fair-value gap to the swing low at 101p.
I consider these modest targets. In the longer term, the swing low at 316p should also be achievable.
The reason I think this is that there could be a tremendous amount of growth around the corner for Carclo with just a little bit of a pivot in what it does. Carclo has been active in the aerospace sector for 100 years. Its specialism there is, inter alia, applying technical plastics to electronic components and aerofoil blading.
Now consider this. The war in Ukraine has demonstrated one thing more than any other: the value of drones. Small, cheap drones and thousands of them. Currently these are sourced from China, which is hardly a reliable partner in a major defence-procurement exercise.
I would guess that, through a tweak of its existing capabilities, Carclo could quickly be in a position to deliver cheaply mass-produced, British-made drones to the MoD and other NATO partners, whether directly or as commissioned by a major defence contractor.
I am a humble retail investor with no inside knowledge whatsoever, but if management are not actively exploring this potential already, then they are letting shareholders down.
If they are, however, then the possibilities for Carclo are tremendous, and a 2000+ percent increase in the market cap (to c£200m) could be eminently achievable. In that event, the current fears over gearing and the pension deficit would become a negligible sideshow.
This is, to my mind, one of the most undervalued shares on the market.
BUT: DYOR and GLA.
Cheers,
?Testudo
Hi all. New here. Long-time lurker, first-time poster. This is an exciting juncture for Carclo and several other businesses I’ve been watching that have taken a big hit in recent times (PHE and TGP on the LSE and NANO on the TSX). But it’s Carclo I find most compelling of a very interesting bunch.
The share hit a high (a classic double top) in January 2013 and went on a dramatic slide. When that downtrend was broken, in December 2014 and at about 90p, it went on to double over the next 30 months to about 180p, before resuming its downtrend. That slide that commenced in June 2017 has endured five-and-a-half years. It hit peaks in May and November 2021 and September 2022, without ever breaking out.
Yet next week, just by dint of time, (barring a calamity in price today) the share looks like opening above the trendline on the weekly chart for the first time across those 67 months. That is quite important, and the share - which has provably traded very technically - looks like it is making a bit of a move today.
It would take nothing to double in price (to where I initially invested with my SIPP and family funds) and that is why I have bought again today.
Still more intriguingly, though, are the Fibonacci levels in this recent downtrend. A retracement to the 50% Fib would take it to 91p, tantalisingly close to the several equal highs at 94p, and to the ICT fair-value gap to the swing low at 101p.
I consider these modest targets. In the longer term, the swing low at 316p should also be achievable.
The reason I think this is that there could be a tremendous amount of growth around the corner for Carclo with just a little bit of a pivot in what it does. Carclo has been active in the aerospace sector for 100 years. Its specialism there is, inter alia, applying technical plastics to electronic components and aerofoil blading.
Now consider this. The war in Ukraine has demonstrated one thing more than any other: the value of drones. Small, cheap drones and thousands of them. Currently these are sourced from China, which is hardly a reliable partner in a major defence-procurement exercise.
I would guess that, through a tweak of its existing capabilities, Carclo could quickly be in a position to deliver cheaply mass-produced, British-made drones to the MoD and other NATO partners, whether directly or as commissioned by a major defence contractor.
I am a humble retail investor with no inside knowledge whatsoever, but if management are not actively exploring this potential already, then they are letting shareholders down.
If they are, however, then the possibilities for Carclo are tremendous, and a 2000+ percent increase in the market cap (to c£200m) could be eminently achievable. In that event, the current fears over gearing and the pension deficit would become a negligible sideshow.
This is, to my mind, one of the most undervalued shares on the market.
BUT: DYOR and GLA.
Cheers,
?Testudo