re: Ann: 2010/11 Results, Timing and Signific...
Yeah......I'm very confident based on what I've seen and heard....
Management has said they are aiming at double digits.....to be honest, the possibility of that is a little difficult to believe
The stock still trades at a slight discount to its proper value before the acquisition.....
If they achieve double digit margins.....the stock would need a $1 in front of its current price
I'm a little surprised they 'gave' Amcor the other factory facility.....as they paid about same value for the business as with that facility included.
I think that indicated though, that CKL management will not pursue capacity and market share for its own sake.....that it must meet particular margins and benchmarks...
Time will tell if they can execute, but this result will likely display high free cash flow......which in the end will gauge how well they can 'buffer' the underlying CKL business should the acquisition not go well....
The crucial aspect will be how much CAPX the acquired business needs in the near term......or whether its just a case of cutting costs and dicing off staff to meet margins
CKL Price at posting:
75.0¢ Sentiment: None Disclosure: Held
