Sorry, the underlying operating cash flow was quoted in the small print as $7.4m not $10m as mentioned in my previous post. Their own commentary was a little misleading in that it did not mention the $2.6m offset until late in the announcement.
It is clear that the customs case is of vital importance to the company and a result has been very slow in being delivered. It was mentioned that the USA has also started a customs enquiry with a preliminary decision due (but not certain) in September. The company quotes Chinese extrusion imports as rising from 7000 tonnes to 60,000 tonnes (34 percent of the market) over the last decade.
The result is very much in line with expectations and the heading of the thread is appropriate. The Capral share price is very cheap in relation to both its assets and sales. Capral now have a very strong balance sheet and are managing to survive even with the massive Chinese presence in our local industry. Any progress on this front either via Customs or because China reviews its exports in this massively energy intensive industry and Capral will look very cheap.
There does appear to still be solid sellers out there today but my guess is that current prices will prove to be a floor over this next six months.
I do rate Capral a very cheap value stock.
GPASAS
CAA Price at posting:
15.0¢ Sentiment: Buy Disclosure: Held
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