Share Price Performance
From a low of about ...
Share Price Performance
From a low of about 490p in April 2008 the shares rose sharply to a peak of 805p in two month, went up more than 40%. This is an enormous rise and may be due to the market’s reaction to the announcement of its audited results for the year ended March 31 2008. The price fell back to about 490p in 14th July. During the Aug2008 and Jan2009, the shares fluctuated between 540p and 660p, which seems not influenced by the economy recession. It might because the Irish pork crisis caused a ripple effect on consumer demand on the UK mainland, and the British sausage and pork product maker Cranswick, which posted robust interims in November, had generally traded well. The share price rose to 731p at Feb, which was gained after the pleasant interims posted and the divided paid out at end of Jan.
Relative to the All Share index and the industry index, the shares followed the sector quite closely before Sep2008.After Sep, the sector followed market went down dramatically, the shares seem went up since Sep2008.At the end of March, the shares had rose 40% relative to the market index., and that Cranswick has outperformed the market by a slightly more than it outperformed the sector.
Over the last ten years, the share price generally went up. In the last six month, the price fluctuated around a flat line. At the negative complex economy context, while most of companies’ profit shrank, and shares declined dramatically, Cranswick’s good performance and sustainable growth supported it stood up its price. Negative factors along with the positive influences, it will keep its volatility, with the post of another optimistic annual report of 2009 in few months, without doubt the trend is upwards.
The future
The share price trend is upwards with volatility but major factors could be caused by both the Credit Crunch and Cranswick.
Positive factors
The company is experiencing the economy of scope. 'The Board's strategy has been to establish a presence in a number of related and growing areas of the food sector, developed a range of quality products. After few years’ acquisitions and investing in modern efficient factory, Cranswick put its strategy onto the product innovation, and stronger its market positions. The main management team have now been in place for ten years and always made the clear and smart strategies, seem they know where they want to head.
Financially, the past three years has seen continued growth for cranswick, the audited reports are encouraging. The group is solvent and its capital structure is sensible. The profitability ratios are on the high side. The management of cash has been good. Its dividend pay out is reasonable and sustainable. The sound reinvestments support the future growth. The high P/E ratio, suggests investors expect continuous growth from the company.
Using assumptions that were considered to be reasonable the forecast shows an EPS of 51.1p, ...
