By Elric Langton and Alex Langton | 17 January 2024
The featured company is further developed than our usual pre-commercial features in the Lemming Investor Research Newsletter. However, it still poses a risk due to the buy-and-build strategies we explore today.
Coral Products β the cunning David in the Goliath world of plastics, situated in the charming Wythenshawe, one of those slums in Manchester best avoided. The now-enlarged Group of companies has been dabbling with the intricate monopoly game of buy-and-build strategy!
Before we get into the nitty-gritty of the Company structure, strategy and performance, it is perhaps worth mulling over the 200-day basic chart setup based on risk profiles as a guide to entry using filter setups via Sharepad.
Resistance in Retreat: The stock has brushed against the ceiling of 17.50p, an area that seems to have capped the bulls' aspirations. While the price has retreated from this zenith, it's worth watching if this level will transform into a future battleground for control.
Supporting the Stage: The actors hold the fort at the 14.00p mark, a line that has historically been a springboard for price recoveries. This level is critical; a firm hold may serve as a base for the next act.
Ichimoku Insights: Peering through the Ichimoku Cloud, the narrative turns bullish as the price perches above it. This classical Japanese indicator suggests a potential for an upward trend if the stock remains aloft.
RSI and A/D Lines - The Subplots: The Relative Strength Index hovers in neutral territory, indicating neither overbought nor oversold conditions. Meanwhile, the Accumulation/Distribution line trails off without much drama, signalling a lull in the storyline of buying and selling pressure.
Potential Plot Twists: For those looking for entry cues, a dip near the 14.00p support may be an enticing scene, while a breakout above the recent resistance could signal a new chapter in Coral's market saga.
Buy-and-build strategy!
In 2022, a flurry of activity saw the company make a series of strategic acquisitions, resulting in Coral acquiring Film & Foil Solutions Ltd, followed by Alma Products Ltd in June 2022. In September 2022, the Group purchased Manplas Limited; in October 2022, it acquired Ecodeck Grids Limited. It's akin to assembling a jigsaw puzzle with pieces from various sets β risky, but with wit and a solid plan, one could craft a veritable masterpiece.