Croma was the subject of the Evening Standard's "Market Minnows" column yesterday.
The online version is shorter than the print version. I like how Morley fired the entire board, and was proved right by turning the business around. I bought a little of the stock. I won't be surprised if my timing is lousy but I think their's good risk/reward over the long term if not sooner.
A rather harse downward movement in the share price for what was a small accounting error, which is more than covered by this years trading. Well run Company like their honesty and transperancey - rare these days. Would expect the share price to move back up next few days. Maybe a good opportunity to buy a few more.
I have no idea if it has anything to do with the sudden rise but once again I am receiving calls from US asking to buy my shares at an highly inflated price. Each time I have treated the approach as a scam and assume that if I went further at some point I would be asked to put cash up as a sign of good faith. Surely I am not the only shareholder to have been approached?
Good day coming + maybe a takeover situation - Croma have some valuable technologies and infrastructure that is becoming increasing desirable in todays increasingly insecure and volatile world. My gut feeling is to hang on to Croma it is heading in the right direction with good people at the helm.
I hope so, I've had them showing a loss for years but will keep the faith. On three occasions its been the subject of a series of phone calls requesting information on the company and supposedly wishing to buy the shares at an enormous premium. Wonder why Croma should be targeted. Anyway, good luck to them and let's hope this is the turning point.
Been reading Stan Weinsteins book to educate myself on charting. Weekly chart looks great. Breakout of 30MA back in November with good volume. now seeing a bullish bounce off the 30MA (weekly price chart.
Might actually have to sell some WSG to take a position here!
One stock that I have been following and recently added is the Southampton Headquartered Croma Security Solutions (LON:CSSG) an AIM listed security services provider.
Croma Security Solutions is split into four key operating divisions: Croma Vigilant, established in 1997 and provides guarding and asset protection; Croma Locksmiths, covering locks, safes and keys; Croma Security Systems for security and fire; and Croma Biometrics for identity management and access control.
For me, a big part of my investing strategy is questioning management and over the past few years I have uploaded a number of these onto Stockopedia including a recent Q&A with sector peer Westminster (LON:WSG). Talking to management helps me as an investor to get a real feel for the company other than the website bumf and regulatory news that comes out. To follow my management engagement style and after a small initial purchase of stock, I had a productive and very pleasant chat with the Chairman of Croma Security Solutions Group Mr Sebastian Morley a former Black Watch and Special Forces Officer.
Operating with a June financial year end, Croma Security will be hoping to better their like for like figures of full year revenue to June 2013 of £13.2M, with their EBITDA at £0.34M.At the 31 December 2013 half year stage, revenue was reported at £7.31M, up 7.7% and an EBITDA of £0.3M, with Cash at £0.8M and with no bank debt or loan notes.
The chat we had was a general one and we have agreed to follow up with a Q&A which I will upload here exclusively for Stockopedia users, the key feel I defiantly had following our conversation was that Croma Security Solutions management are not in the hype and jam tomorrow game but are looking to be reflected by the market on actual achieved results, which I admire. Mr Morely pointed out, that Croma Security solutions is a cash positive, net profitable company with no bank debt, servicing predominantly the high end corporate UK market, with manpower security and technology systems. Mr Morley pointed out that a large amount of the 14m shares in issue were tightly held with strong shareholder support for the strategy the company is following.
The potential as a shareholder with Croma Security Solutions does interest me, especially the opportunities that may open for the Croma Biometrics division in the future.
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All in all and a small purchase in, Croma Security Solutions, certainly fits the type of stock that I like and reminds me a bit of my early entry into Apc Technology (LON:APC) a stock I have been a holder for years and still keep close contact, hence the Croma Security Solutions Group being a One to Watch.
Looking like a Company that has been shaping up for a great future - building blocks in place - small market cap of circa 4.00 million £'s - could easily double in a very short time span IMHO - Directors respected in the market place the Co operates in - and they put their money were their mouths are holding over 30% of the Co.
Guess todays run up could have been on the back of some new year share tip - if so, a V.GOOD tip I feel.
Old email from Director Sebastian
I thought I'd update you on the progress at CSSG since our completion.
The new board is working effectively. Roberto is a deeply commercial CEO and has gripped the integration the old and new businesses. One of the fundamentals of the transaction is the sale of CSS systems to CSS Vigilant clients and this is happening.
We are in substantive talks with all of our guarding clients to transfer their CCTV, intruder/fire and access control systems to CSSG. Our first sales have been the maintenance contracts which will lead to new systems when capex is available. There will be no overhead increase on this new business so the operational gearing is attractive.
We have won new business with the MOD, the NHS and COLAS. The latter was for an innovative road safety vehicle borne surveillance system. We are now in significant talks with the Highways Agency to roll it out to their vehicles.
We are confident that we will be announcing significant contract wins through the summer.
The new group is marketed as CSSG with a new website launched www.cssgroupplc.com
We are effecting cost savings in the administration and finance functions of all group businesses. The finance function will move to be co located with Roberto in Southampton.
We have changed broker to WH Ireland our new NOMAD being Adrian Hadden. He has an excellent track record.
We will be putting out our first projections by the end of June.
The key year and measure for us is 30 June 2012-2013. This will demonstrate the logic behind our new group and the path for the 5 year plan that Roberto and I marketed in our roadshow.
The consolidation of our share price has not been a qualified success with the price drifting on small volumes of stock being traded by private investors. Directors have been consistently buying into this weakness. It has been disheartening to see to see the stock drift but as some of our institutions have said, deliver the business, let the market see what you are doing and the price will look after itself. This is our unwavering plan.
Buying additional stock and supporting the price would be helpful but I appreciate that many institutions have stated they are treating this as a "listed private equity" investment with a timescale.
If you would like any further update, please do not hesitate to contact me.
In any case, I will update you further in short order.
One thing I think all holders here should be aware of is the inroads and success of Cromas FastVien technology from Cromas biometrics division - this could be a major winner for the Company and appears already to be gaining preference with many cos/industries requiring first class security.
Nice to see sp stir in to life over the last few days. Happy to hold / add to holding - security needs will be increasingly required in the future.
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