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Many corporate groups allow varying degrees of clinical freedom and CVS are one of most restrictive and have a lot of white label products but they could argue that helps keeep prices competitive.
No worries,
It is not CVS way to respond in same way but they have along with couple of other corporate groups made approaches to CMA about a more limited half way house investigation but not sure if that will work.
You have to look at individual corporate models and how any possible wider investigation may impact the different groups and the fact the SP here has fallen so much.
So the underlying business here is still robust and they did make most of there U.K. purchases a long while ago so less likely to be in a monopolistic situation locally and plus they have been very careful with U.K. purchase since as well as establish new Practices like Southport.
They can easily change their local names and they also have ANIMED so an on line presence plus Vet buying group as well as related business.
So yes they have a big exposure to Vet market but as I said SP has halved and I believe the CMA will leave them relatively unscathed so imo this will bounce back nicely in time.
Thanks Ivyspivey, for your comments. Perhaps a more robust response from CVS should have happened. We agree the drop is overdone. Wish i had spare cash to buy in at these silly low valuations.
Better day today.
PAH are much less exposed to the specific Vet sector than CVS and also they issued a more robust response based on their specific model.
However still believe this drop is well overdone
A little more life in it today. Let's hope that we don't see below 1000 soon. And we begin to get nearer a more sensible valuation. Fall here has been overdone ....
CMA interest does not seem to "bother" Pets at Home. It seems only CVS are suspected of dodgy behaviour towards pet owners !!!!
Bought in at £14 sold out at £19 a few years ago. just started a new position at 988p. not looking to trade,long term hold
I keep telling myself time will be my friend. Patience is the game here. It will get back to 'decent' levels, its just when.
Bizarre.
I sold out my recent holding at slight profit for 1041 on Friday.
Just gone back in at 988 ...
Fingers crossed
What is going on here? The price action is bizarre. Very positive Friday and today back on the skids. Fundamentals of business unchanged. CMA threats pretty meaningless. End of trading year coming up so maybe that’s part of it?
Can anyone explain why the sp has halved and remains there. This after several months following the CMA initial intervention. There might be some logic if this company had been making big profits or even paying a good dividend. Neither was the case and the sp when close to £20 hardly made CVs look a good investment.
Just got back from BSAVA and as usual busy during breaks but quiet during ie tires.
Not much talk about CMA report and industry just carries in as normal.According to Vet Times CVS are the only named corporate group to have approached the CMA about suggesting an intermediate framework rather than a full investigation.
Much better day today.
Much better day today. Hope as Monkfish has said a bottom has been hit. As I posted earlier in week the SP has dropped over 740 pence so a little bounce is due. This was 1500 to 1600 range . Personally see a recovery and price settling around 1200 to 1300 . GLA
So, after drifting lower the past few days is today the day we hit a bottom. Press coverage finally ending for now. Hopefully, a bit of sense will return to this market and we’ll see a step up. Or will it keep sliding. Worrying if it does as I’m sure whatever the CMA say about the full investigation there’ll be another drop on that announcement. Funny times for this one. Long term it’ll recover though.
Good luck Teddy. Me too bought some more mid afternoon.
I bought another tranch 5 minutes ago, carrying a lot of these at the mo, I have no concerns with this share. If it is not 1200p by the time I am eating my choccy eggs I will be disappointed.
Don't think they can as it's a Closed Period
The board should be showing support by buying at this price if they think it is cheap. Try and garner some confidence. At the minute it's a sinking ship without a captain.
Can't believe this is down 729 points in a month.
Like a major profit warning ⚠️.
Overdone? Time will tell I suppose
Anyone who got in here early this morning will do well I think.
Still no significant buy pressure here below £10.
Are the CMA releasing their plans at the start of April or is there going to be a delay before they release the full details of their investigation. They state they are having a month long consultation with the sector but it’s not clear to me if they are then going to announce the scope of their investigation or will there be a long wait before such an Announcement?
Yes great post Surprised.
Don’t forget in Feb 22 when CMA did report on purchase of QPC the lowest the SP got was £16.Then they did an investigation into local monopolies but only with CVS- if you look at those including Nottingham and Warrington and know anything about Vets in those localities and which ones are CVS you will know if the CMA simply required the divestment of The Vet then they could not have been that concerned with CVS dominance.
So if CMA require further divestments which is the main worry to the Corporate sector then CVS are very unlikely to be impacted
@Surprised. An excellent post.
...... two year 'look at the industry........
Not a share for you then Shearclass, If you believe the market is as sophisticated as the details you suggest in your post I would be happy to agree, however, the market is far from that sophisticated or most shares would be priced 'correctly' according to daily/weekly metrics and as we all know share prices rarely reflect the 'true' price for numerous reasons, including broker algo's, macro etc. Share will shoot to the upside and equally crash to the downside, for on going businesses where nothing material has changed (CVSG) it is for each of us to determine if the market has over reacted to the downside in this case....a number of metrics very much suggest CVSG is oversold and broker algo's are in play, they add liquidity and can steer prices, particularly in a market such as this. The sp will likely (maybe / maybe not) trade in a band at these levels for a short while, however, a 50% drop on a two 'look at the industry' while it is business as usual suggests well oversold, no material changes and a business that is aiming for growth, I van wait a few weeks/months for the dust to settle, sentiment is a fickle aspect ....the market occasionally provides opportunity, I believe this is one, some will not, it's what makes a market.