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Me too Mary v sensible
Up on the back of BARC and banking profit outlooks for all including CBG.
CBG will weather this storm and head back swiftly to £4.
That said 325/282 rise caused a small trim to readd in a pullback.
Adding and trimming.
Is this FCA investigation not going to produce large fines or penalties and pay outs? The way SP is behaving - stabilizing and moving upwards, and large volumes - points to that.
As I see , it is all about discretionary commissions (DC) charged by CBG and other lenders. The vehicle buyers came to realize that they have been overcharged after FCA banned DC in January 2021. But there is a catch. The ban is not retrospective. That is why many lenders are challenging the claims made by car owners saying that the rule was not in force for period prior to 2021. So it is not going to be easy for the FCA to award compensation. Further the lenders have not breached any rules and therefore, even if awards are made, fines or penalties will not be imposed on the lenders as they have done no wrong. Right. How much involved.
I saw in the FCA website, it says , that by banning the DC , customers would save £165 mn per year. So isn't this roughly the amount car owners will get and become a charge to the lenders. Doing the numbers , the 14 years past it would be £2.3bn. So it is not going to be tens of billions. CBG share could be a small. FT reports it would be around £110 Mn, RBC estimate, one year Dividend.
https://www.fca.org.uk/news/press-releases/fca-ban-motor-finance-discretionary-commission-models
https://www.ft.com/content/474f5c90-b336-4576-bf12-0f88d0ccde6f
GLA
Thanks SYNO
Good post totally agree ,very oversold and ridiculously cheap..
I can't help wondering whether the speed of the bounce this morning is already talking to short covering.
Yes, I understand. Could easily see it falling back to 295/296!
Still, good bounce to start the day off with.
Chelmo : My contact in CBG tells me this is in all likelihood going to result in a slap on the wrist, we are small fry in this investigation by FCA and I believe we will note some large investors increasing their holdings, note £20 million arranged purchase yesterday. Ignore the FUD. This will 2 bag by end of 2025>>>>easily 😉
This company has made average net profit over the past 8 years in excess of £100 million with ease and in 3 of last 4 years over £400 million NET PROFIT. Fine will be paid and the NAV will still be above £7 per share .....MINIMUM !!!!! The shorts will bail very quickly as have already made their moolah.
Golden opportunity. 📈😊😉
Come back in an hour 😂
That post didn't age well JBW!
So can’t see much of a bounce if honest
Todays low 285p closed above 300p spread 0.273
Fridays low 284p Thursday 278p Friday closed 295p the spread has been 0.4% both days.
Nah, -62% ytd won’t halve again from here , won’t get clarity on costs for another 6 months or so- plenty of damage applied already so good value at these cratered levels-superb tuck away
UT?
This has another 40-50% to fall. Bearish until there’s clarity on the actual costs. Keep on a watchlist and buy sooner to an announcement if you like a gamble.
The 6m seller prob has a different view. gl
Someone just bought 6mio shares at the close. Largest trading volume of the last 10 years
Bullish signal, target 450
Doing a couple volatility trades here. RSI went under 6 briefly, never seen a Ftse 250 go that low, crazy stuff.
SYN, why do you want yourself ignored?
You are correct. Royal London is reporting the transaction. Actual shareholder who bought the shares 5.30 %is "HSBC Global Custody Nominees (UK) Ltd". Good news.
Ignore me, I'm a muppet 😂
Wow, over 5% bought of the company on Friday by Royal London Asset Management !!!
Brilliant news.
When this rallies the upside is multi
Yep plenty of value here
Agreed Winterfloods is worth at least the current market valuation.
Back of envelope, 10bn loan book, 2bn of which is motor finance say subject to 10% penalty so £200m cost.
Still leaves balance of loan book and Wins.
Hilarious if not in such a poor position currently, CBG only thing showing green ...
I’m an x City trader and believe me Winterflood a v good biz , times a little tough for lots of city brokers but these things have cycles and things will improve
Admittedly not great but my point is plenty of value there