Market's view on Cropper (J)
Published on April 2024
- Stock watchers have seen a rise in Kraft pulp prices since last June.
- Concerns are raised around the market cap being low at £23m but with potential for survival unless a severe economic depression occurs. The focus is on how quickly the company can reduce hydrogen market costs and limit paper losses.
- Observations made on the illiquidity of the company’s stock, affecting trading capacities, with peculiarities in buying and selling prices noted during tax planning periods.
- Director purchases noted with skepticism towards the strategic impact and ongoing management issues.
- Discussion on whether director buys signal an upcoming improvement in the paper division which could stabilize the current stock price.
- Company’s share price has hit a 10-year low, eliciting discussions on any remaining value and the strategic errors leading to this decline.
- The chairman’s focus on green initiatives and local development perceived as a distraction from the core business, potentially leading to the company’s decline.
- High trading volumes observed without significant impact on stock price, with market watchers keeping an eye on delays in the hydrogen projects pushing expected results to 2026-2028.
- A local solar farm development by the chairman to potentially aid the company with cheaper power is noted, but mixed feelings about its impact on company focus and performance are expressed.