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Hi,
I just called in to say hello. If you're listening s/w, this looks an interesting stock. It appears to be bottoming somewhat. I'm not in at this point but observing with interest. I'm familiarising with what's in the news!
I hope you're keeping well, old son.
Just looked at the last 12 months news on two main sites for vets (association and times) and cannot see any articles on corporate behaviour, possibly looking in wrong place! There was talk re regulatory change and this maybe the key to reducing prices in a sector where independents are the majority rather than corporates.
Just read all vet press on the CMA and you’ll quickly see vets are peed off with corporates and their behaviours. He was one of the few remaining vets in a corporate Board room. There are independent vets opening left, right and centre near us. It’s continuing the Dow turn of corporates they’ll be back but it’s decades away.
Doubt it he is a horse Vet and thst is a very small,part of CVS business.
Love to know the full story of resignation , might explain the last few days of trading .
There are few things more monopolistic than food...the CMA should look at food quality and pricing! We all need to eat, supermarkets put pressure on farmers to reduce prices which lowers quality, meanwhile the price to consumer stays the same or goes up. very very few big companies control almost all the food.
OH always tells clients that they can get meds cheaper elsewhere - it costs for a prescription to be written out, but they are valid for 6 months.
Mind - she had a client who abused the system recently - who went with the prescription to several online suppliers and used the same prescription at all of them; this could actually come back on to the vet if there are issues
Going along very nicely, soon it will be tipped. halving the share price due to cma seems crazy. still got 18 months to report will buy again on any weakness.
The market liked the PETS results, so we have benefited. If we work with the CMA and bring in the changes they want ,it might not affect earnings too much. What makes me laugh is ive just bought into Diageo they have over 200 brands. They have just bought a few small brands. You dont get the CMA telling Diageo to change their names to Diageo,
Seems to be a slow and steady increase back to value, which is nice
The report should not stop the growth. I know we have got the "green light" from the CMA to purchase companies since the investigation was started. I liked the RNS from our management and the way they are cooperating with CMA. The big worry is how the new regulations will effect forward earnings.
Seems pretty basic advice from the CMA, these 3 are their top tips:_
1. Look further than the closest vet
2. Ask if there are other treatment options
3. If it’s not urgent, consider buying the medication elsewhere
I mean if that is what they are coming out with then how many others businesses should they look at, Opticians, Dentists, Physios, Petrol Stations spring to mind but I am sure the list could go on!
Opticians are the ones for me, my Mrs got some glasses from a large High Street chain, must have been 3-4 times the price of other places! Yes she could have gone elsewhere but they dont make it thagt clear!! What are they going to impose, cant sell medication on the day, have to tell customers it could be cheaper elsewhere (what business in their right mind would tell a customer when buying something, you can get cheaper elsewhere) It would be like going into a nice bar and being charged £6 for a pint and them telling you its only £3 in Wetherspoons!
"Vet practices can often charge the same price for the same treatment and services, so it is a good idea to check and compare prices across different practices." This is a quote from CMA tips for choosing vet!
Finally the CMA announce what we already expected/knew.....I'll have a look at their 'findings' in about 18months/2 years from now (no doubt there will be delays and any recommendations etc will also take time to implement, if at all) so a very lengthy wait for a report that will likely have little material impact on business overall imo.....in the meantime CVS have a couple of years to focus on running the business which they have done pretty well to date.
Another 18m of investigation…..no wonder the UK has an increasingly poor reputation as a place to do business.
And then the Aus regulators will look at the results…..
BTW they also need to look at the role of insurers in the market…..it is a price spiral higher vets fees drive higher claims which makes consumers think they need more insurance who sign off on higher fees as they just pass the cost on…..equally any pay by instalments for treatment just adds to the costs.
This is only good for lawyers…..Vet companies need to focus on providing good value to their clients.
It’s quite significant in the grand scene of things isn’t it, well not quite spectacular but certainly to the point that this will both increase cash flow and also mean further optimising the sectors that are profitable and working.
Making the decision to cut the dead weight and fine tune the business, to me, seems very positive and shows the drive to increase value.
Though the downside being, this part of the business was a failure. However, in terms of moving forward from this sp and this moment. It should equate to a positive In the long term.
Interesting disposal terms. Of no consequence in the grand scheme of things, but nice to know CVS look after their chums.
The vet business is still bouyant as evidenced by the 20 Practices I have visited this week and the corporates are still interested in buying the right practices.
Good to have broken the 1000p area and very large UT looks good to me.
ATB
I suppose everyone has a view , the charts i think have had their final dip but i could well be wrong. to me this whole stock market is a form of gambling but hopefully when you lose its not your whole stake. so if it was a football match i think its odds on for a win or draw. when i go for a walk in the morning everyone has dogs so the overbreeding doesnt alter the population numbers. cvs is one of the better corporate groups and the CMA has provided buying opportunity. thats my take on it , only time will tell.
Good luck with your investment elswhere blablabla1,you've looked at cvsg, it's not for you, but it is a buy for others. We all have various takes and views on stocks, it 's what makes a market.
Just came across this business in my screener, interesting business and can see why it looks undervalued based on DCF .
Technically the charts/macd looks to me that it can drop in a final wave before stabilising. The tailwind in vetland from covid are over, breeders even have a hard time to sell puppies this year. Buying clinics is expensive as independent vets know how to max sell their business, have seen this myself. Result is often forced cross selling of expensive treatments to earn back the investments in the clinic resulting in loyal customers being irritated, do not like the balance sheet from them at this moment. So the expected lower growth, relatively high debt compared to income and high goodwill/intangibles and the CMA make me wait and put this on the watchlist. Always interested to hear why I am wrong in my initial thinking.
Yep, ever since I typed that it cant breakthrough the 10.00 'electric fence' it has gone over (shows what I know!!!)
Looking as if the barrier of 10.00 might be brocken . still cant understand why so cheap , notwithstanding the CMA.
Razz/of course its trading in a range, 940-1000p,,Its going nowhere until the CMA report comes out.