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As I mentioned last week, this will start to see a re-rise very soon. You are right when you say this is a good company, and it still is. The problem at the moment is not specifically about this share but about the entire market, however with share buy-back taking place and the recent broker rating I would say the 40's will be here sooner rather than later.
SP 37.80....I wish!
Fantastic company and has just got hammered
Far more buyers than sellers and yet the SP is hammered for a second day. Why does this share get hammered much harder than other listed motor dealers? No end in sight. Should have sold at 49/42/37.5 even last week. My only hope is a bid and with an MCap of less than £400M this is now looking my only escape route. 60p would do the trick! This remains a great share with excellent dividend prospects, but the dynamics have massively changed.
This as with so many other shares has taken a nose dive due to the impending referendum. Once its all over we should most certainly see a jump back up to the high 40's with today's Broker rating giving impetus to that.
it seems...so may have more pain/downtrend to play out
Disappointing to see share price drop below 40p, particularly when I see the Company has been regularly buying in and cancelling shares. However sentiment re new car buying seems to be waning and therefore I presume very limited activity until after Brexit vote.
It's spiked a bit quicker than I anticipated. But the up and down over the last month seems to be a bit more than the usual variation. Maybe the fall was over exaggerated.
but sector looks to have bottomed
Thought it would bob around this price for a while. If the yield keeps increasing so eventually will the price. With so many blue chips cutting Dividends and all the miners cancelling them people will start to look for value. 3-4% is decent value.
interesting post..flatter cos of weak fcf/cont capex spend? and/or what?
After being told of the sudden closure of Birmingham Aston Martin, I am now told that the Wolverhampton territory for Jaguar and Landrover that Pendragon were publicly in dispute with their former Stratstone MD over, has been lost and transfers on Friday this week to Jardine motor group. Yet another JLR territory? I am not sure where the profit will come from to replace all of these ?.
I understand from a friend at Sytner group that this car is contracted NOT to be sold for 5 years ! So £1.2m of shareholders funds tied up for that period. Certainly looks like vanity, It is hard to see the business case
Probably an investment but you can buy a lot of used stock for a million quid! So vanity prevails!
Cheers Sparkwise very good point what do you think of this vanity or a good investment http://www.pistonheads.com/news/ph-britishcars/stratstone-buys-a-jaguar-lightweight-e-type/34219
VTU results flatter to deceive. With a lot of JLR businesses you'd expect a lot more. Problem is they are mirroring the disastrous path the PDG followed. And that ended in disaster! So get rid of the ego and they might stand a chance - if not ...........
=52 week lows
Even going back 5 years ago, PDG had a scary amount of propertys on 100year leases empty gathering the dusts...Were not talking just a couple of sites either hence the move to "try" differrent angles with stores etc. VTU numbers due this week so I guess we will see where the results are there although they have already said above market expectations...will look more for the update on current market but I think uses cars should be encouraging. IF you look again over the sector at SP, most of the stocks are trading around 2 week lows. I guess the big question currently coming is next month, if Brexit is avoided , then the groups will no doubt see a bounce in price. If Brexit is taken up, then who knows ! PDG have always eaten through staff, even at the higher levels (I can remember a conversation with a Divisional director being dragged down to Loxlet on a Friday afternoon because he wasnt following UCM....but was making way more than the KPI.... Long of the short, the sector isnt performaing as badly as the SP`s look, however there are alot of nerves with the impending vote and in my opinion this is having a far worse effect than actual trading results will be.
They have opened a new Porsche garage but I believe they have also been forced to keep the old one too? Seems very strange! These are big investments to carry
With respect to W'ton, can't imagine too many prospective Porsche customers flocking to buy a new 911. Would have thought an Evans Halshaw site would be better, Again, we just do not know the facts, but it appears, based on previous threads, that Pendragon is reluctant to invest in high class margues, at the moment anyway.
Were Pendragon supposed to be opening a Porsche garage in Wolverhampton, i'm sure there is a built dealership but currently only used to grow weeds
There seems to be something going on with their premium brands and I whilst I haven't read the details in their recent results I would have thought that they had a legal obligation to inform investors of any material change in both leadership and franchise structure? Disposing of premium highly profitable brands which presumably cannot be replicated and opening loss making used car dealers doesn't sound good business sense to me - I must be missing something? The two senior people who have left Stratstone - did they leave voluntarily? Losing senior managers in a business which is supposed to extremely difficult to attract good people must surely be a huge problem? And if they are planning to open in new towns and cities how will they be able to do that?
I was passed this on Saturday , it is an e mail from ASTON MARTIN confirming the termination of Stratstone for the Birmingham territory. BELOW; Dear J Lucke In the following weeks we will be opening a new Aston Martin dealership in Birmingham which will be based at a well-appointed temporary location before moving to a purpose built facility at a later date. We have been working closely with the team at Aston Martin Birmingham to create both a showroom and a customer experience befitting of the Aston Martin brand, with first class customer service delivered by a truly dedicated and passionate team. The dealership will be managed by our experienced partner Grange Motors, who currently run Aston Martin dealerships in Brentwood and Welwyn Garden City. Aston Martin Hagley will cease trading on the 30th April. From this date Aston Martin Birmingham will serve the needs of customers in Birmingham and the surrounding area. Yours sincerely, Marcus Blake I understand the staff were told only a week before so it did not look planned ! It worries me that there appears to be a continuing reduction in the number of premium outlets, I do not recall ever being informed that this was planned in any annual or interim report?? we should have full disclosure. I totally agree with you reference the risk of opening in unknown areas with no supporting infrastructure. Likewise the biggest challenge they face is obtaining more stock to open these new centres with. I suspect that is proving very tough and the only reason that ( for the first time in a long while) that they have not commented on increasing used car sales (maybe they are not increasing !) Visits to a website which they seem hung up on, is irrelevant if it leads to no more sales. To your other point I am told that the head of Finance and insurance for Stratstone and also the head of aftersales have both departed recently . Does anyone have any further info? I am too heavily invested to just sell out , however , I am concerned whether we are to expect trouble.
Yes you are correct on all counts. There are rumours of a number of very senior managers ready to bale out. Since the Stratstone MD left the COO is now trying to micro manage all of the brands and failing. Their used model is not working and the new sites are all losing money I am told. Their story of opening new sites in target locations all sounds good but they have no infrastructure in place and recruiting in unknown locations will be a massive challenge and a huge risk. The big threat are the on-line retailers like Carwow and Drive the deal and how long will it be before 'We buy any car' also does 'We sell any car'? Owners BCA has just purchased Ambroseti who are vehicle prep centres and with thier footprint already in place its a matter of when rather than if!
"Our financial position remains strong, with our debt : underlying EBITDA ratio remaining significantly below our target range of 1.0 to 1.5. We are currently assessing our best use of funds." I hope they are not considering a large acquisition given the history, Share buy back if anything