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"Vet practices can often charge the same price for the same treatment and services, so it is a good idea to check and compare prices across different practices." This is a quote from CMA tips for choosing vet!
Finally the CMA announce what we already expected/knew.....I'll have a look at their 'findings' in about 18months/2 years from now (no doubt there will be delays and any recommendations etc will also take time to implement, if at all) so a very lengthy wait for a report that will likely have little material impact on business overall imo.....in the meantime CVS have a couple of years to focus on running the business which they have done pretty well to date.
Another 18m of investigation…..no wonder the UK has an increasingly poor reputation as a place to do business.
And then the Aus regulators will look at the results…..
BTW they also need to look at the role of insurers in the market…..it is a price spiral higher vets fees drive higher claims which makes consumers think they need more insurance who sign off on higher fees as they just pass the cost on…..equally any pay by instalments for treatment just adds to the costs.
This is only good for lawyers…..Vet companies need to focus on providing good value to their clients.
It’s quite significant in the grand scene of things isn’t it, well not quite spectacular but certainly to the point that this will both increase cash flow and also mean further optimising the sectors that are profitable and working.
Making the decision to cut the dead weight and fine tune the business, to me, seems very positive and shows the drive to increase value.
Though the downside being, this part of the business was a failure. However, in terms of moving forward from this sp and this moment. It should equate to a positive In the long term.
Interesting disposal terms. Of no consequence in the grand scheme of things, but nice to know CVS look after their chums.
The vet business is still bouyant as evidenced by the 20 Practices I have visited this week and the corporates are still interested in buying the right practices.
Good to have broken the 1000p area and very large UT looks good to me.
ATB
I suppose everyone has a view , the charts i think have had their final dip but i could well be wrong. to me this whole stock market is a form of gambling but hopefully when you lose its not your whole stake. so if it was a football match i think its odds on for a win or draw. when i go for a walk in the morning everyone has dogs so the overbreeding doesnt alter the population numbers. cvs is one of the better corporate groups and the CMA has provided buying opportunity. thats my take on it , only time will tell.
Good luck with your investment elswhere blablabla1,you've looked at cvsg, it's not for you, but it is a buy for others. We all have various takes and views on stocks, it 's what makes a market.
Just came across this business in my screener, interesting business and can see why it looks undervalued based on DCF .
Technically the charts/macd looks to me that it can drop in a final wave before stabilising. The tailwind in vetland from covid are over, breeders even have a hard time to sell puppies this year. Buying clinics is expensive as independent vets know how to max sell their business, have seen this myself. Result is often forced cross selling of expensive treatments to earn back the investments in the clinic resulting in loyal customers being irritated, do not like the balance sheet from them at this moment. So the expected lower growth, relatively high debt compared to income and high goodwill/intangibles and the CMA make me wait and put this on the watchlist. Always interested to hear why I am wrong in my initial thinking.
Yep, ever since I typed that it cant breakthrough the 10.00 'electric fence' it has gone over (shows what I know!!!)
Looking as if the barrier of 10.00 might be brocken . still cant understand why so cheap , notwithstanding the CMA.
Razz/of course its trading in a range, 940-1000p,,Its going nowhere until the CMA report comes out.
Steviewonder77/ I get what you are saying but this just looks like its just being traded in a range. The market is a 'game' lots of the time and fundamentals go out the window!
Hope you are very successful with your open goal steview. I am deep enough ,in , with CVS dare not risk even an open goal !
Iron/the market,like us,are waiting for the CMA decision. The world and his dog knows this is 50% undervalued. Ive filled my boots with this in the last few weeks. Its an open goal.
The CMA have reduced the sp by50%. Despite this, the recent upward move in valuation of the Aim stocks that are solid companies has not seen any improvement at CVS. Seems the market views this company as being only fair value below £10.
Razz/it doesnt matter,youve bought a business, not a SP
Keep noticing that it gets to 997 and drops back. Not sure how many times it has happened.
Does anyone have a site that lists the daily high for a stock for say the last 28 days? I did have a quick dig around but couldnt find one.
Will be intersting to see where is heads once the 'electric fence' of 997/1000 has been succesfully jumped.
The CMA does have an issue with the vertical integration of some of these Corporate businesses and the cautious welcome by the RCVS to the proposals tells me a Market investigation will proceed.
However concepts like the Healthy Pet Club are endorsed by the CMA and are applicable by bith I deoendent and corporate vets alike.
CVS are in a good position as their Crematoria business is a very small bit of operation and their referral sites are not in monopolistic situations
Dram/your right, also how it will affect our business model ,will they stump our growth. At the end of the day ,its all about earnings going forward. Whats good for our customers ,will be good for us
IMHO I suspect the CMA perceives a problem with the CVS Group companies restricting competition because of its one-stop-shop structure - involved in diagnostic labs, pet medicines, pet insurance, "healthy pet club", crematoria, etc. Staff are reported to be under pressure to sell these add-ons ( especially additional diagnostic tests, food supplements and insurance) and clients are not advised about or offered any alternatives to the Group's products or services . I suspect CVS will have to rein-in this approach and then the big question will be how much profit will be affected.
Deutsche Bank, "Buy" target 1400p.
The CMA will have to come up with some recommendations to not look like bigger idiots than they already do, but it won't be anything that changes the fundamental metrics of CVSG. It's a great company, currently seriously under valued.
At these levels it's a great investment as long as you can sit tight for 2 to 3 years. Unfortunately not too many RIs can do that.
Indeed, the drop from 2000p+ is simply on a potential 2 year enquiry to pricing and transparency of pricing, nothing material has changed.
CVSG does not generate excessive profits/margins (like banks/insurance and others do) and for those who understand the industry as stated in previous posts there is a shortage of vets and the cost of products/medicine etc is not cheap and I saw one comparison in the media that stated the equivalent/similar products for humans can often be bought cheaper than those precribed by vets, totally omitting the fact that the law prevents this practice !
Fair enough the CMA take a look at the industry, however, as many have suggested, vets included, they will find the cost of vets, training, premises, insurance are l supported by current charging and practices with a likely recommendation for displayed standard pricing where possible. Vets and pets is an expensive business, the shares for the business are currently far from expensive though :-)