CRAW – Crawshaws

Interesting reading Paul Scott’s report on CRAW (Crawshaws) today. I didn’t know results are out. I imagine most people have heard of CRAW by now. They run a chain of butchers.

I think I saw shares trade down more than 10% earlier on, but they seem to have stabilised at down 8.3% to 23.38p.

Paul reports LFL down 3.8%. His conclusion: “I think there’s a reasonable chance that the share price could stage a partial recovery”.

I have been hugely envious of the investors holding these shares in the past. I have seen them make excellent calls on it, buying probably around the 4p mark, only to see it shoot up above 90p. I bet there are hotshots out there like Robbie Burns, and others, that made a fortune on this one. The trick is to apply stop-losses.

I have been on the sidelines all along. I notice that the shares made a huge drop in September. If you had sold after the drop, you could have realised about 33p, which is much better than the 23.4p I see today.

Management seem to have a hard time telling the truth. I think they really need to be more up-front with shareholders.

Personally, if I were holding this share, I would probably dump it. That LFL drop is not good news at all. On reflection, if the company were able to make, let’s say, 1m in profit, slap on a PE of 10, you’d probably be looking at a market cap of £10m, half what it is at the moment.

So basically, there’s nothing to say that the share price can’t halve from here.

BWTFDIK? I’m just shooting from the hip. There’s a good chance I’ll look foolish for saying that six months down the line.

Stay safe out there.

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About mcturra2000

Computer programmer living in Scotland.
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