Evil Diaries: No Scandal with Sandal

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Evil Diaries: No Scandal with Sandal

As it happens I have applied Sandalwood Shaving Cream to my visage for the last forty years. I like the smell and in any event it works. The smell is liked by women but sadly does not overcome halitosis. However, it is made by Creightons (LON:CRL).

Had it not been for Robert Corden (of Weybridge) I would have thought no more about it. It was he who pointed out to me that this is an interesting company. For a start it has no public representation yet is fully listed (and therefore, chiz chiz, attracts stamp duty).

But Robert directed me to PIWorld and got me to listen to CRL’s presentation in respect of its six months to 30th September 2020. He also said that this presentation is the best he has ever come across. It is not remotely pretentious and lays out facts that render CRL inescapably attractive. It currently turns over well under £50m p.a. with healthy margins. However, it expects to turn over £100m by 2024. If so and the margins hold up (why not?) EPS will be well north of 12p per share and, on the current 65p (where I bought 100,000 last week), it will look a solid long term investment. It is capitalised at roughly 150% of tangible net assets.

*****

Hardly anybody nowadays (why?) refers to Jim Slater’s PEG ratio. But, arguably, CRL is on a PEG ratio of 0.66 (or well below the trigger point of 1.0) and this can drop lower. There is no hurry to buy, which is just as well since it is a thinnish market. But it looks to me to be a five year investment – and that is just for starters.


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