Gordon Stein, CFO of CleanTech Lithium, explains why CTL acquired the 23 Laguna Verde licenses. Watch the video here.
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I think many will just be holding tight as with general car sales now falling and interest rates on the mover higher many will not be able to afford to buy cars,so total sales and profits could fall a lot more this year. and maybe the right time for a takeover has passed.
With a market to market trade by Constellation at 102p for 20% of us a few months ago and our Nav P/S at 90p by now. We are string ducks for a low ball takeover at 110p or something close. So hard to understand how we can be trading at under a quid.
Thought so.
This can't be right as showing £1 first thing, or is there news coming of a takeover.
Or is it just wrong market numbers at the opening?
Just read Pendragon RNS, and does not suggest things are much different yet, buy what is important is margins are keeping up on new, and staying strong on used, which more than compensates for any drop in sales. Also order books are still very strong for new vehicles. Also to come, rail travellers are going to be forced onto the roads as the service deteriorates more, if that is at all possible
I’m sure if Pendragon are issuing profit warnings on new car sales it’s got to be a copy and paste across all retailers.
Anyone in a position to take this out who does not do so seriously needs to find another job.
This is textbook and simple.
Substantially profitable, property rich, significant cash.
yep; now the Marshall Motor Holdings acquisition's completed you wouldn't be surprised if Constellation were looking at making a bid for Lookers at the current share price. Even in these difficult times you'd have thought they'd be very interested in a complimentary business to Marshall's that's trading on a decent discount to cash plus it's (conservatively valued?) property portfolio.
Been tipped for takeover for quite some time now.
Tipped again over the weekend.
Whilst offering good long term value, is the current share price strength indicative of stake building prior to a bid. I can see no obvious reason at the moment why the share price should be bid up but as a shareholder it is good to see.
Edward - And the CFO bought today - not a large amount but always a good sign!
I believe the lower end of the second hand car market is really struggling at the moment. However, at this price, Lookers is still great value for those willing to hold for a couple of years. GLA
Good to see 50000 bought by CEO today.
Maybe Monty888, but it was only in the balance sheet at £10.5m when it was sold, and you cannot possibly think that 2.2 acres of Battersea is only worth £10.5m, whatever it use?
I'm not suggesting the total retained property valuation of £290m is only 35% of true value, but I am suggesting it is substantially conservative.
If it was sold for £28m net without any rental agreement then it’s real value would indeed be £28m however that’s not the case and it’s all wooden money in reality. But yes it does flatter the balance sheet and properties and cash less debt so give a nice NavPS but it’s not as clean as it looks in reality. However as I keep harpin on (boring I am) if Constellation paid 102p per share a few months back in a normal market we are worth more, my Spence is 115p fair value. I do also think we are vulnerable to a takeover at less than 102p.
I agree. This is as close to free (or less than free) money as you will ever find.
When Constellation came in the Nav PS was c.72p now it’s 91p. Constellation will have completed as much due diligence before buying and being welcomed as a new investor. I’m sure they are expecting a 10% plus profit inside the first 12 months of their hefty investment. One would think fair value after todays updates around 115p to 120p. These are funny old markets lately but as we all k ow true value will come through and I’m sure we will see 115p plus inside 12 months (Nuclear wars etc aside).
With 91p per share in property and cash, the business is now valued neagtively even though it is highly profitable and ' exceeds expectations'. Looking for an uplift here today.
It's getting difficult to keep up with the holdings,
As far as I can see Constellation must own about 26% now, Pendal group holding about 10.16%, Artimis about 11%.
So that about 47% held by 3 companies. sooner or later someone's going to make a move.
Lookers was written up by the Times Tempus column with a Buy recommendation. Confirms the views in these discussions.
Is this looking likely? Is that the reason for the 9% hike yesterday?
We got to be worth more than 102p paid for their market to market trade a few months ago I would think.
Very vulnerable to a takeover for them now at 102p getting the rest of Lookers in these current markets which would completely undervalue where we should be on a 2 year from now basis (c. 165p +).
I disagree. No sale and leaseback freehold purchase is going to proceed without evidence of underlying value.
There is plenty of evidence that 2.2 acres of land in Battersea is intrinsically worth very much more than £10.5m.
And my point is that it we have no evidence whatsoever that freehold was or is worth £28m. The waters are completely muddied by the leaseback side of the deal, the freehold without a top paying tenant attached could well really be worth £10m (or less).
I'm not advocation sale and leaseback.
My point was that if they were able to sell a freehold asset valued at £10.5m in their books for £28, the £290m freehold valuation of their retained sites is likely be be very conservative.
Re "Don't forget they recently sold a Chiswick freehold with a book value of £10.5m for £28m"
I don't think that transaction offers the comfort you think it does. Recall they also agreed to pay rent of an initial £1.25m for 20 years, which totals at least £25m over the term. By the time we've allowed for rent increases it looks very much like borrowing £28m, paying it back with interest and throwing in the freehold.