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We might get a few more pennies before the end of the month as I expect broker upgrades will see most of them at £1 ish.
I bough a lot more of these at 60p expecting good trading up-date and sp rise, but this 5p/6p looks like the best we are going to get for a while and after seeing both Marshalls and Pendragon I thought these would go up a lot more but the city / market now doesn't look like it will so I sold a lot at 64.9p, and gone back into Mars.
Funny old game.
PDG up 8% VTU up 2 and MMH up 3. LOOK have dropped the ball vs the others in not f/c profit or confirmation of divis. VTU buybacks. LOOK err….maybe we payout one day next year. Clearly trading is fine so really hope the new chairman gets this sorted. The last one was completely useless….
So over the last 2 days we have seen very good trading up-dates from Marshal Motors, Lookers and now Pendragon, the sector looks great but will the sp go up much ?
So why isn't the sp up to 70p , just don't get it.
Trading Update
Trading in Q3 remained strong and above the Board's expectations driven by new vehicle market outperformance, excellent new and used vehicle margins and continued tight cost and working capital control.
I came across and negative guys, sorry! Just a question of transparency and trust for me given what has happened here over the last couple of years. Gaining the trust of the market in being clear in what you say and doing what you say you are going to do is worth millions on the market cap. They still have a way to go on this but hoping the new choir will sort that.
Red, net cash is £1m better than June and since december significantly better. I agree mmh rns reads better but the raising of guidnace should result in an increase in sp imv.
I’m expecting a bump up. Liquidity has improved enormously:
At 30 September 2021, the Group had a net cash balance of approximately £30.0m compared to net debt of £25.9m at 30 September last year.
Red wine, guess your glass is half full
Full year pbt guidance has been raised materially in spite of uncertainty in supply chain. Lookers outperforming sector.
Will market downgrade on uncertainty or upgrade on guidance??
I have a core holding. Took a chunky, short term punt yesterday at 59p and I would expect a nice bump upwards today (and if so I will take profit) but you just never can tell.
Hmmm. Net cash is the same as at the end of June after paying back the govt. So implies FCF was only marginally positive in the period.
Also I don't know why they cant make a profit forecast for the full year. They have only 3 moths to go. They know how many cars they will have to sell in the period, the AS rev is constant. Marshalls managed to make a forecast why cant Lookers.
Waffly RNS
As predicted yesterday in today’s Q3 trading update:
“…excellent new and used vehicle margins”
True but where demand exceeds supply margins will increase. I would hope to see this reflected in the next trading update
Logically if used cars are up 100% and new are down 30 then should, on balance, be more profitable for retailers. That said eventually there will be an unavoidable crunch in used car stock too.
Well at least there was no bad news or nothing specific to Look for the drop yesterday , and the sp should come back strong at some stage.
True. But it is incredibly asset backed. And incredibly profitable, all the more so as a used car dealer in the absence of new stock.
Good news. Will be a short lived fall. Bought up shares at 61p this morning as except will put 10% back on this week.
But this could mean double / treble sales when the chips come back !!!
New car registrations fell to their lowest levels in September for more than two decades, according to figures from the industry's trade body.
The Society of Motor Manufacturers and Traders (SMMT) said new registrations dropped 35% compared with the same month a year earlier.
Falling car production has been blamed on an ongoing global shortage of computer chips.
However, sales of electric cars are rising rapidly, the SMMT said.
While the car market as a whole has suffered through the pandemic, more than 32,000 electric cars were registered in one month in September, almost as many as registered in the whole of 2019 - 37,850 electric cars.
Second-hand car sales in the UK have more than doubled in the last few months after a shortage of new models.
Year on year, the used car market grew 108.6% in the second quarter, with more than 2.2 million vehicles changing hands, the Society of Motor Manufacturers and Traders (SMMT) said.
The number of sales was up 6.6% on pre-pandemic levels in 2019.
Petrol cars made up most of the sales, but demand for electric cars is growing fast.
Increased demand led to a rise in sales of older used cars, with only 12.7% of all vehicles sold being made within the last three years, the lowest on record.
I also think the value of the freeholds is a red herring. If the motor retail business is about to be disrupted (not saying it is or that Cazoo will take over the world, but the world will to be the same for LOOK et al in 5 or 10 years) then the valuations as non motor trade premises are worth nothing like the book value today.
Sept regs due tomorrow or the following day. Could be Sept market was worse than forecast. Even so...
It would indeed be good if someone could explain today.
Why should a profitable, debt free, and cash rich business be worth less than the value of its freeholds?
Suggestions?
Holding strong
Mm making a move
Fastcar will be along in a bit to entertain with his rant about about Cazoo valuation, not making any money blah blah blah and how LOOK is a neglected money making machine. Would be good if he could explain why his baby lost 20m in market cap today.
Welcome to Lookers!!!