The latest Investing Matters Podcast episode featuring Jeremy Skillington, CEO of Poolbeg Pharma has just been released. Listen here.
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I did not say it was factored in the SP. but it's business plan for the year. The FCA have been reviewing the financial commissions over a year ago for the whole trade. It was in the press at that time. I was only making my views on here.
Whilst I appreciate the sentiment that lookers are a large Group, with significant connections to the UK motor finance lenders, this total ban on finance comms has come from the left field.
All, and I say this without any doubt whatsoever, all, of the big lenders were preparing for an element of flexibility on a much reduced APR corridor. This move, whilst it’s good for consumers, does very little for a motor industry that is not only dealing with reduced customer demand, but also another cliff edge coming with the incoming FCA review into regulated add on products (due by Q2 2020).
This isn’t an anti lookers smear, or trolling lookers holders, it’s the facts. No one saw this coming, and to say it was priced into the SP is wholly inaccurate, IMO.
I was referring to the industry wide FCA crackdown announced today, not the known issues specific to Lookers (which might well have triggered it): https://www.bbc.co.uk/news/business-50052375
I think VTU looks the best bet in this sector. LOOK have already abandoned the buyback and will soon be taking the hatchet to the dividend. Insider buying on its own doesn't turn a business (or indeed a market) around.
I would agree, and lookers have already months back put a fixed rate in place for all ages of car sales. This is not something new. Look have been beating this drum for a long time and been factored in there budgets
Thanks, fully agreed f15 but those aspects are priced in - and perhaps more - from late June onwards even though such enquiries often drag. Mr Bramall would not have expended much of his personal fortune if not. My contacts within the industry regard Lookers as one of the better players on such matters anyway, and the fact that directors volunteered the information so to speak and made honest cost provisions so quickly could also get us first to the other side. The exact wording is:
"As disclosed in the 2018 Annual Report and Accounts, during last year the Board became aware of certain matters requiring review in some areas of the business subject to regulation by the Financial Conduct Authority ("FCA"). In December 2018, the Board commissioned an independent review of the Group's internal control, risk assurance systems and internal audit. This review, which we shared with the FCA."
I'd be more concerned with FCA regulation of car finance than with short positions.
Astute Odey took advantage on Friday of geopolitical price weakness carried over from Thursday to buy back (short cover) 0.10% of stock. IMO that's how it's supposed to be done, not wait until panic buying during a surprise upside welcome to us who are long.
Still 1.08% to go at Odey but hopefully similar support in due course as the economic cycle rises again, Br*** and regulatory aspects start to conclude, and the share price catches up with the declared asset value of the company instead of being at a discount.
Unrelated to the above but something is up at weaker competitor Pendragon (PDG) after several months in the doldrums, a Swedish company has significantly increased its long stake. I have no information not in the public arena but am a shareholder at PDG also, at a lower level.