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Nice wee vote of confidence - 150,000 shares
This is valued at just £1.8m per site.
You can't buy a half decent petrol station for that. A good one is way over £3m.
Totally crazy.
Yes I am surprised we are still at 70p or below after these results. A great turn round and now with £33m in cash and NO debt things now look much better are this should be about £1 now or very soon.
What people are missing is that although new vehicle volumes are down due to short supply MARGINS are dramatically up. Dealers have walked away from high discount fleet business and discounts to the retail customer are much reduced. So the dealers are making MORE money selling LESS cars, which means less expenses on preparation, valeting, delivery etc. Used stock is very short indeed but the franchised dealers like LOOK have the advantage of a steady stream of cars and vans taken in part exchange against new. And the high margin aftersales business continues unabated, in fact is increasing because people are being forced to keep their vehicles longer. It;s win, win, win for the dealers currently.
Lookers have got the biggest New Car order bank in their history, the pent-up demand for new is sensational. Once the City wakens up they will realise that this company and sector is not like a home improvements company or Howden’s etc, shares in these chaps have went stratospheric, however people don’t purchase a new kitchen every 3 years or have their homes painted or renovated every 3 years, unlike the Motor sector where new cars are normally changed and upgraded every 36 months…
Wakey Wakey
Results were very good but this was well flagged at the half year trading update so not really a surprise hence only a muted reaction to the results. My holding was bought around the current price so will add on any share price weakness. I suppose the unknown is how the supply of new vehicles is going to affect the full year and next years results. However I am happy to hold and hope we have a dividend payment at the full year.
With a forward P/E of well under 3, is there a cheaper share out there?
I can't believe I am still able to buy shares at 70p this afternoon.
With a forward P/E of well under 3, is there a cheaper share out there?
Well with a NAV of 77p from their property portfolio and these fantastic numbers, once absorbed by the brokers and the re ratings published we should see a nice uplift (75p to 80p) would be my estimates. Surprised we didn’t get a big bounce today but we do still need to put time and distance behind us from the old BOD and dodgy accounting I suppose. I’m sure in fact it’s all squeaky clean now are the investigations and the banks will have scrubbed the audit findings also. Only way is up at current low single P/E. GLA
Time will tell but i suggest you keep a close eye on the sales volumes and profits from these 2 new entrants.
Through time they will fail…
If they make £90m this year, the p/e is 3, not 5.
The p/e is now around 5 and cash generation significant - re rate overdue on the fundamentals imv. If sp stays at these levels then private equity will surely bid.
Fastcar
You are howling at the wind mate.
cazoo and cinch work best in a lockdown world but that is now over. People really want to touch and feel cars before they buy. Future is very rosy here imv.
69p! I win!!
How can Cazoo’s business be worth 20 X more than lookers?
For many City fund managers, the answer’s simple. It isn’t.
As one of the biggest, who has shares in traditional dealers, puts it: “Cazoo is a bubble. Pure and simple. Possibly one of the biggest ever. And when it pops, a lot of people are going to feel it.”
A reknowned short-selling hedge fund investor with a nose for such things agrees: “He’s a clever guy, no doubt, Chesterman. But I’m afraid this one is heading for a nasty fall.”
Cazoo delivering zero net profit but valued at £6 Billion, LOOKERS will deliver £5 BILLION in sales and profits of circa £90 million yet we are valued at £270m, it absolutely defies logic..
CAZOO AND CINCH will fail and the sooner the market wakens up the better…
Just watched the interview on the company website, very encouraging all round.
Expect industry leading results and a new Chairman. THE stock will now be Re rated…
My money's on mid 70s?
I have been told to expect phenomenal results
69p
Potentially VERY good. Wonder where we might end by the weekend?
We already know these will be good
But this week MoneyWeek have called time on this big fat fib!
Adrian Porter at Which? found that in five out of six cases you get a better deal... at the dealer, reports Alex Rankine, Markets Editor. In one case you'd be better off by over £2000 selling to the dealer! Andrew Charman from The Car Expert also warns of sharp practice where "the valuations from car buying services can be cut once the vehicle has been inspected."
It's no surprise to the industry but the ITV star ads, which themselves feature Phill faking footie skills, parachuting and yoga are full of fibs.
But it's good to see reputable publishers calling time on this extensively advertised misrepresentation.