Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
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Deutsche Bank, "Buy" target 1400p.
The CMA will have to come up with some recommendations to not look like bigger idiots than they already do, but it won't be anything that changes the fundamental metrics of CVSG. It's a great company, currently seriously under valued.
At these levels it's a great investment as long as you can sit tight for 2 to 3 years. Unfortunately not too many RIs can do that.
Indeed, the drop from 2000p+ is simply on a potential 2 year enquiry to pricing and transparency of pricing, nothing material has changed.
CVSG does not generate excessive profits/margins (like banks/insurance and others do) and for those who understand the industry as stated in previous posts there is a shortage of vets and the cost of products/medicine etc is not cheap and I saw one comparison in the media that stated the equivalent/similar products for humans can often be bought cheaper than those precribed by vets, totally omitting the fact that the law prevents this practice !
Fair enough the CMA take a look at the industry, however, as many have suggested, vets included, they will find the cost of vets, training, premises, insurance are l supported by current charging and practices with a likely recommendation for displayed standard pricing where possible. Vets and pets is an expensive business, the shares for the business are currently far from expensive though :-)
I agree with all that you have said.
The other challenge Vets are facing is shortage of actual Vets as well as Nurses. Gaps everywhere therefore movement is easy if they fancy a change. That in turn will mean paying a bit higher to retian/attract talent.
I am not in deep here (685 shares) which I have purchased at various prices, at a current average of £11.12 per share.
I do think if we see this breakout the current trading range it could move up fairly quickly. It seems to be hitting the 'electric fence' just below £10 and dropping back.
Probably my favourite UK share at this discounted price.
I simply can NOT believe that much bad news will come from the enquiry plus, even if it does what could be ENFORCED ?
Vets are bloody expensive end of !
Perhaps CVSG will need to be more transparent but the profits are NOT excessive.
It is so unfair what CMA have done without any evidence that stands CVS out from other Companies. Surely BOD need to show some Balls and stick this back at them? What have they done differently? In fact i think CVS are better priced!
There will be no news for many months as the pen pushing CMA parasites talk among themselves but basically doing nothing. How these grubby clowns came to land at CVS door is a mystery, as is why our Politicians allow such con artists to be funded by the Tax payer is a mystery.
Funny day’s price action today. Up all day then decent drop in the last hour and a half. I wonder if there might be news tomorrow
Ivy/young,thanks,i didnt spot that. i wondered why the SP went up this morning. Im getting sloppy in my old age
Exactly. 28th March. Fair few days ago.
From 28 th March
A load,after hours.
Not sure Buchanan where you are from and if you know but Buchanan s in Manchester along with Tony Regan and Michael Gourlays were the 3 big group Practices CVS bought a long while ago before they added Petmedics.
All Vets should say you can get meds elsewhere - they will charge for a prescription but that lasts a few months. OH (not @CVSG) always tells clients this
Didn’t the consultation period close today? Would there not be an announcement today?
This will be back over 1000p soon. Just made an animed order for cats flea and worming spot on treatment. Nearly always cheaper than elsewhere. How can CSV be the best value but still ripping off customers? I think this will settle around 1100 to 1300, still uncertainty but shares are too cheap down here imo.
Shear/,they have already made their mind up ,whatever that may be. As for internal meetings and procrastinations, they are probably taking their dog for a walk in the park. As they all work(dont make me laugh) from home.
@steviewonder, 2 days to decide whether or not they do a full market investigation, with all that would entail? Surely you can't be serious? This is a public body, any decision will likely require dozens of internal meetings & procrastination
They closed the initial consultation in November and didn’t report until March. I doubt they’ll be rushing out their final verdict. The tone of the initial release is very negative and it’s absolutely clear they want to do a full investigation and try to flex their regulatory muscle. Unfortunately, it’s also clear that the CMA has a very poor understanding of the sector. The report is all about justification of their chosen course. I find it quite frankly utterly bizarre that the CMA have decided to target the veterinary sector given their complete absence of interest in changes to optometrist and dental services in the UK or of course fuel stations and supermarkets in general. Let us not forget that their staggering action against petrol stations was price comparison websites only even after disclosing years long price fixing!
There is also no acknowledgement in the report that the consumer respondents are likely to be disproportionately dissatisfied clients so most of this feedback was always going to be very negative. Any attempts by the CMA to set pricing beyond prescription fees will be farcical as practices will simply increase other fees to make up losses and consider reducing provision - this has already been seen with European travel certification. Ultimately, what is to stop consult fees rocketing even further to compare to private doctor fees? The CMA need to be very careful or they’ll inadvertently hurt consumers. As has been stated before on here the margins of the corporate groups are not eye watering so I think they will face stiff resistance to anything punitive.
Shear/yeah,take 2 months and leave companies in limbo. It should be 2 days maximum.
5.9
"Following careful consideration of the responses to this consultation, we will publish a final decision on whether or not to make an MIR in respect of the supply of veterinary services for household pets in the UK."
If the consultation closes today, surely 'careful consideration' means a month or two?
Just seen 5.4 in link I posted and deadline for submitting response is 5pm tomorrow so maybe no full response tomorrow
FYI this is full consultation document proposal which will be finalised tomorrow and May be of background interest.
https://assets.publishing.service.gov.uk/media/65eee4015b6524420bf21a93/Veterinary_Services_for_Household_Pets_in_the_UK_-_Consultation_on_proposed_market_investigation_reference.pdf
I was referring to communication tomorrow.
Do think they will investigate further and that full report could take 12 months or more but I am looking at the detail of what areas they want to look at closer.
I can then judge how it will affect the industry and especially the individual corporate groups like CVS.
When will the CMA report be released though? The consultation closes tomorrow, but that doesn't mean they will be publishing their decision on how to proceed any time soon...