Cheers. JJB my more risky choice. Pendragon is my more long term bet in my portfolio. Just got a feeling about this one a few years down the line. Unless management mess this up I am confident about steady year on year increase
PS good luck with your 0.1M shares - only a flutter really. Just looking back since the start of the year. I held approx the same value of JJB and PDG. Interestingly, I have made more profit on JJB since then, by selling at a half-sensible time. However in the long term: PDG + JJB = 0 ie I have lost on JJB approx what I made on PDG!
JJB - yes. I bailed out at a loss at 7.31p after the first bad news. So glad I did. It's not now the kind of share I would gamble on - could go either way, but IMHO most likely to end up zero for shareholders.
I agree with eyeguy that there is little likelihood of short term gain here. Those days are over for now. The sp now reflects a sensible valuation of a slightly risky motor dealer, given the high level of debt to service. Both Lookers and Inchcape are trading on higher p/es but they don't have very much debt. I suspect the price will still be around 15-16p in the run up to year-end results next year.
No expert myself but have held these for a while and sit on a tidy profit of 300 perc over 5 years across my portfolio. Think historically these shares fall a bit after RNS. Probably the market expects them to do better and the realisation sets in that they have massive debts that are going to take a while to pay back, hence the sell off. My gut says it is better as medium to long term bet. Maybe ask MATHS PROF as he/she seems clued up on the share. Cheers. Good luck
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