a good day to buy ccl, page-3

"Market cap is 6.7b, so theoretically, you could buy every share in this company and own it outright for $6.7b.

Would ANYBODY buy a company for $6.7b that has made profits of around $300m in the last 7 years?!?!?

And to boot, the shareholders equity has been steadily dropping from 4.4b to 1.4b in the same period.

WAKE UP and sell before it is too late!"
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Seeing that your only 3 posts on Hotcopper are on the CCL thread, I must consider you a CCL expert/specialist.

In which case you obviously know that the reduction in shareholders equity was due to the demerger of the European bottling operations and the subsequent sales (and capital returns) of the Philippines and Korean business.

You also seem to be on top of the numbers, correctly stating that 10 years ago CCL generated $4 billion of revenues and $202M profit from $6.5 billion in assets ($4.2b equity, $2.3b debt) whereas now it generates the same revenue and $366M in profit for the much reduced asset base of $3b ($1.4 equity, $1.6 debt).

In the last 10 years therefore CCL have improved the Profit Margin form 4.7% to 9.1%, ROA from 5% to 15% and ROE from 5% to 25%.

Clrearly, this is an improved business, but I don't have to tell you that as you are a CCL specialist.




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