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Results a week today. This is incredibly cheap - trading update on 11th Jan referenced £80m+ profit and a cash/property value of 95p per share. Tough recession already priced in? Lithia's recent purchase of Jardine, a much smaller UK dealer group than Lookers, for a reported £300m+ highlights the value on offer.
The market though remains unimpressed!
But what is the consideration? We shareholders do own Lookers. Why the secrecy?
Ford has indeed gone completely nuts. Devoured by extreme wokery, never to return.
But Lookers are clearly pinning their future to brands that actually do make cars that people will buy.
To be discontinued in 2024. So what a surprise as this was the 5th best small selling car in the UK last year.
Have Ford gone nuts. ??
and will this do anything for Lookers.
Lookers have discussed both new and used volumes and margins in significant detail throughout the year in there results and trading updates. There is no new news for investors in your quote from the SMMT.
Sales of second-hand cars fell sharply last year as fewer used models came onto the market, industry figures show.
A shortage of parts driven by Covid meant fewer new cars were produced, and people hung on to their cars longer as they waited to upgrade.
Some 6.9 million used cars changed hands, down from 7.5 million in 2021, according to the Society of Motor Manufacturers and Traders (SMMT).
Will this drop the SP
simonsw00d - anyone who doesn't think £1 is on the near horizon, is in the wrong game.
This is a very long established and stable business that generates profit and cash of nearly £100m per year.
If that £100m is only worth £350m, then everything else is wrong.
yes! we need to break 95 resistance first.
Is a pound a share on the near Horizon?
This was from an article in the Telegraph today, which speaks about all the Chinese brands of EV's coming to the UK market, which Lookers are getting very involved with.
For Lookers’ Raban, though, the arrival of a wave of affordable Chinese cars is a “phenomenal opportunity” for his business.
New brands could take 10pc of the UK EV market by 2025 and 18pc of it by 2030, industry researchers estimate.
Lookers current strategy seems to be spot on.
https://twitter.com/scswsharewatch/status/1618542518781763584?s=46&t=23KTZzzRviQfZXWl8EpKVQ
Tweeted today by scsw
In one of the trade magazines yesterday was a report " The Americans are coming ". Lithia Motors are in advanced talks to buy Jardine Motors for £300m. Now this is based on their FY21 figures which showed profit before tax at £24.5m, against Looker's £90.7m, with turnover for 12 months at £1.66b, and year end freehold + long leasehold at £103m and net debt of £79.5m. If they do pay this, then where does this put our valuation when comparing figures. A minimum of £1.50 per share I would suggest, and probably more. It said that American dealers flush with cash are running their rules over UK dealerships, being very profitable and cash generative.
Well Schwee, have a look at the interims for Thungela plc, and Bisichi plc
Bisichi is over 100 years old, incredibly stable, and made £22m profit in H1. It will make at least that in H2. But its market cap is..... £28m. That is a p/e of about 0.6.
Edward, Who are these less than 4 p/e companies?
These very long established, asset backed, money tree companies are a curiosity.
It is incredibly easy to put together a portfolio of shares in companies that are enormously profitable, cash generative and dividend paying, but that are trading on a P/E of less than 4 (and in some cases sub 1).
It is frustrating in a way, but also an incredible buying opportunity for as long as it continues. So on balance, a good thing if you are a regular investor.
The market just doesn't seem to back money trees with assets far exceeding SP. They have never made so much profit with tight supplies, direct selling guaranteeing margins, and lack of competition discounts. this has been going on for 2 years, or so now, and investors still asleep, or is it not enough of a casino bet? Lookers policy of opening retail type units, and using existing dealerships for taking on Chinese electric brands, will only increase profitability, as they are generally more affordable.
Looks good here but when will the sp reflect the cash and property value? Currently the market assumption must be that the business has a negative value around 14p per share!!
A good update from company and one that bodes well for future. We are still trading well below NAV of circa 95p. Onwards and upwards.
Lookers to open another dealership/retail unit to represent Polstar, and may open more in 2023 along with Ora. Slowly, slowly catch a monkey goes the saying. Less capital intensive way of growing distribution turnover.
All these rail strikes will have done no harm to new and used car sales in the last 3 months plus. Lookers will do their trading update later this month.
Here is hoping that 2023 see's a steady but decent rise in share price. Not going to set targets but I would like to see a decent rise for LOOK. Continued good luck to all on this board be you investors, potential investors or those just watching. Good luck and success to one and all. Per ardua ad astra!!!! Rgds Saintly
Hedin pulls out of Pendragon takeover citing challenging market conditions and outlook. Something must have changed in the past few weeks. Mr Hedin still a major shareholder so he continues to have a foothold. Agreed MC, our board treading cautiously and, so far, soundly.
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Lookers not made any major acquisitions for a few years. Probably got burnt paying over the top by previous management with the money they received for their distribution business. Seem to be growing very carefully now, taking on new Chinese EV distributorships, which will prove very wise in a changing market I feel.
Helston Garages bought by Vertu.
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