Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from ShareProphets). I have no business relationship with any company whose stock is mentioned in this article.
Plastics Capital (PLA) has done itself no favours at all with a trading statement which for word analysers is a bit of a puzzle. The good news is that it states baldly that it is on track to hit forecasts for the full year after a Q3 which was strong.
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Comments
Bernard O'Sullivan
I have looked at this share repeatedly, and heard a very persuasive, though rather diffident, presentation at what was then RMP. However, for a specialist niche producer it seems to me that its operating margin is very small and (subject to what is said in the current rns) declining year on year. That suggests to me that its pricing power is relatively weak, which is worrying for a niche specialist. My finger continues to be drawn to the buy button, but not quite reaching it.