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Hello all,
I read that the Hedin takeover of Pendragon may be hotting up in the next few days. ' Tis rumoured that Constellation (Webuyanycar and Cinch) may entter the fray. Constell. holds 20% of Lookers. We must wait and see, but if Constellation does not go ahead it may come for us. All my speculation!
T
You got that one right Tav though I'm looking for 100p minimum.
Buy back announced today should lift sp to around 80p imv.
0.05% of the company's shares traded today yet the share price falls by nearly 6%.
A bit of a mismatch there.
Ok pardon my message below. So the narrative is, we are seeing industry wide consol and even Vertu is lining up deals in the pipeline. Tony sold 20% stake to Constellation early this year; why has it taken so long for them to acquire this whole thing and sale leaseback land etc? Or were they waiting for a lower base price after the rumors die out and swoop in soon.
Shareholder register is different from Pendragon; Bramall is pivotal.
This, and even more so Bisichi.
H1 2022 profit £22m, market cap £30m!
Has to be one of the most undervalued stocks out there.
Assets circa 95p
EPS circa 15p
P/E circa 4
Yield 4.5%
Absolutely crazy
Anyone in a position to take this private who doesn't, doesn't deserve to be in a position to take it private!
And this still has assets north of 95p plus earning and related dividend.
I see that a small Swedish auto dealer co is bidding 29p for Pendragon and, IMO, might well succeed. Interesting times.
T
I'm not sure it has a lot to do with Lookers's prospects but "Sales of EV cars will also fall considerably as before long charging them will be more expensive than diesel/unleaded cars." is just plain wrong.
Anyone with any sense charges electric cars in the small hours at around 2p/mile. Only a tiny proportion of EV charging is bought expensively on the forecourt.
As you say Lookers seems to be holding up. Seems to bounce down to about 75 to sell and then back up again over a few days. Spread though is often to wide to make buying on the down days worthwhile. I continue to hold in the hope that we will eventually see a bid from constellation.
Daily T recommended sell over the week-end. Am staying put. Cazoo in trouble in Europe. Lookers seems to be holding up.
T
Increased sales of new cars in August driven by the sale of EV's. If power charges are pegged by the new conservative PM, I don't think it will affect EV sales too much, certainly not in the short term. Lookers are positioning themselves to tie up with a lot more EV manufacturing entrants to the UK, and I suspect quite a few big Chinese ones. They are also growing with Polstar, who are doing well with EV sales. I wouldn't be too sure goinglarge.
Decided to sell today after holding for some time having purchased at 52p. Given the cost of living crisis, I can see a lot of people being forced to sell their second cars and driving down the inflated prices. Sales of EV cars will also fall considerably as before long charging them will be more expensive than diesel/unleaded cars. Will look to buy back in 12 months at around 52p level
The Lookers share price is never going to excite in the same way as tech stocks sometimes do. Unless of course there is a takeover - but this is not something I look at when choosing to invest in a stock. If it happens, then it’s a big bonus.
However, in the current environment, I am quite content with holding shares in fairly reliable and predictable businesses that offer long term value – and Lookers fits that bill for me.
Today’s results give me even greater confidence in the future of the business – no surprises in what is a very challenging environment. Whilst I am far from convinced that the sales of electric vehicles will eventually give the industry a much needed boost (new models are way out of the price range of the average buyer), I believe that Lookers are better placed to emerge from the present environment than their online competitors. For me, Lookers shares a very sound and solid investment for the longer term investor (there are never any certanties of course!)
GLA.
here's the thing about pension deficits , in general they are reducing everywhere because our life expectancy has been reducing since covid so provided we live long enough to reap the reward of a rerate here all will be fine!
From Annual Statements:
2020 Pension obligations = £338m Assets = £258m (£80m deficit)
2021 Pension obligations = £313m Assets = £270m (£43m deficit)
June 2022 deficit = £24.3m
Deficit reduced by 70% over 2 years and funding level increased from 76% to 90%.
IMO this small deficit can be managed from healthy profits and can soon be wiped out.
Taverham,
But still having to pour cash into the pension fund. This is a drag and will make any raider think before jumping.
Prepared to get hammered
Excellent results and with cash and property worth 95p per share an implied 4% yield this must re rate surely?
How do you feel now seeing the shares more than 25% below what Tony B took for his.
Don’t say I didn’t warn you, you labelled me a deramper didn’t you Mr Clever Cloggs
With a Nav PS of 90p, Constellation taking 20% off Tony Brammal and his family for 102p PS. Probably an enterprise value of 130p. I really don’t think the time to take over Lookers has passed at all. I think it’s never been better with SP down at 75p to 80p.
I think there's still a fundamental under-supply of new cars (due to the chip shortage, other parts on unavailability - look at the issues with Aston Martin for example).
Lookers have a cracking portfolio (my interest)....hopefully they'll do better deals from now on than that sale and lease-back jobby on Wandsworth.