Takeover Candidate-Gorgi: CRGI
Started Dec 10 2008 at 7:58AM (EST) (By DowJonesDave)
Corgi is a well established leader in its industry/ The company makes diecast metal, pre-painted and ready for display models. I am familiar with the company because I sell many of thier products. I run an online (ebay) diecast model shop and have sold Corgi products (among others) for four years since I opened the store.
Anyway, CRGI is in the edge, with a possible delisting and some of it's units in administration (UK Term for receivership I believe), but the company make the highest quality products and all of those castings and molds and the name in worth a lot, and will be most likely aquired by someone soon. The company is selling at 6% of book value, and sales turned around lately.
I think this would be agreat addition to long term portfolios, weighted lightly due to the high risk. it's almost sure to be aquired.
You can see the gorgi products I sell here (note this is not an advertisement but it IS christmastime):
ww2diecastmodels.com
Anyway, CRGI is in the edge, with a possible delisting and some of it's units in administration (UK Term for receivership I believe), but the company make the highest quality products and all of those castings and molds and the name in worth a lot, and will be most likely aquired by someone soon. The company is selling at 6% of book value, and sales turned around lately.
I think this would be agreat addition to long term portfolios, weighted lightly due to the high risk. it's almost sure to be aquired.
You can see the gorgi products I sell here (note this is not an advertisement but it IS christmastime):
ww2diecastmodels.com
This post is more than 60 days old. Replying to it might be confusing for other members reading the discussion.
By all means, keep the ball rolling and post a new opinion.
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7 Comments
Top 2%
blacktuna
Dec 10 2008 at 11:29AM (EST)
great inside stuff..
Dave, if the company is selling well, it doesn't show on their balance sheet.
It looks like cashflow is negative at - 5,000,000 with only 718,000 in the till... looks like a definite belly up situation.. if they are to be bought out, it needs to happen soon..
Their website doesn't offer too much detail..what kind of competition do they have?
I'd appreciate any further information you may have on this..
Thanks,
/g
Top 1%
DowJonesDave
Dec 10 2008 at 11:38AM (EST)
heavy competition from lower priced brands. model power, forces of valor, franklin mint, IXO, 21st century, Hobby Masters...
I've cut my stock due the cost but I still carry certain issues that aren't available from other companies.
Iagree that it would have to happen fast and I did mention the high risk...
Top 1%
DowJonesDave
Dec 10 2008 at 11:39AM (EST)
Website:
http://www.corgi.co.uk/
Top 2%
blacktuna
Dec 20 2008 at 3:37AM (EST)
So far doesn't look too promising.. I'm looking for these kinds of companies.. do you know any others?
I'm holding PGPDQ as well.. Pilgrims pride used to be worth $32 and are now trading at 0.74.
http://www.marketguru.com/stocks/pgpdq
Top 1%
DowJonesDave
Dec 20 2008 at 5:37AM (EST)
Corgi is the only penny i'm looking at that isn't fundamentally strong. The only reason I have it is I'm biased I sell thier products...
Fundamentally strong companies snapshot
XFML is one of my real holdings you might like that one.
Top 1%
DowJonesDave
Dec 20 2008 at 5:38AM (EST)
XFML bought @ 0.56
Top 2%
blacktuna
Dec 25 2008 at 12:12PM (EST)
Hi DJD,
Tell me more about XMFL.. with PGPDQ i could see the logic as you made a great case for the take over bid... Chinese media seems quite a different story than pilgrims pride.. would love to hear any info you have on this..
Looking to put some money into (all but) dead and Berried formerly well known brands.
tnx
tuna