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It is 2021... Not 1961...
We live in a tech world. Tech is the future.
Think forward. Not back ;-)
hehe
It's different this time!
Lol. That is *precisely* why Cazoo is IPOing in NY and not London... ;-)
Unsophisticated Brit "investors" stuck permanently in the last century, determined to stir relentless misery and hysteria and talk everything down...
For well over a quarter-century, the US has been seeding trillion-dollar tech firms with their foresight... The Nasdaq has gone to the moon by +7000%... All while Brit "investors" sneer from the sidelines and whine relentlessly about the past... Very, very old-fashioned and woefully out of tune with the modern future world.
Lookers is about the future. And the future is the *digital disruption and online revolution* now sweeping car sales. Its (much more popular than you realise) Click and Drive platform is in prime position to be the Amazon of cars for the 2020s. That makes it a hugely valuable asset as a standalone business or takeover target. Cazoo, Cinch, Cazam, Driverama, Carvana and even Amazon have billions and billions to spend and will be well aware of Lookers and its juicy 5-15% UK market share...
As the giant £5 billion Cazoo IPO draws closer in the coming weeks, Lookers will come into sharp focus...
12 billion lol..
I'm in here. The SP looks undervalued but to compare the nuts valuations attached to Carzoopla to PDG or LOOK means nothing other than anything with tec in the prospectus means a unhinged valuations if indeed anyone is valuing anything. I'm old enough to remember there last internet bubble in 2000 and this one will end the same way.
LOOK valuation will be unchanged either way unless one of these SPACS decides to bid for it, which I doubt.
Carzam has set a target of selling 20k cars online in the UK in FY 2021. Lookers sells more than that in one quarter. One article recently suggested Lookers might now be worth £12 billion (current marcap is £0.3 billion).
It may interest you to know that franchised dealer groups make more from aftersales ( service parts etc ) than car sales so new car sales aren't everything.
Just dipped my toe in.
GLA everyone, i hope to join in with the conversations here.
Yes on SMMT
Thank you.
This would be a new sector for me. Are the car sales figures published monthly?
We are waiting for the first online company to list and awaiting the next set of uk car sales which should push this higher and maybe talks of takeover here and pendragon will push these higher
Morning all, first time on this board with a genuine question.
The chart shows a steady rise towards the results on 8th April, will this continue and is it worth holding onto for the dividend.
Thanks.
All good points. You may be right. My nieces and nephews are their cars as fashion accessories I think, but they all wanted to try then buy. Not disputing the online market isn’t valuable but with such a big push that you need to look at surely people need to try....?
Younger folks under 40yo are moving online. Older folks over 40yo still want the showroom experience (for now). The 14-day "return guarantee" is the new test-drive for online car purchases.
Dealers = try then buy
Online = buy then try
The beauty of online selling is "winner takes all". Become the most trusted online brand, and you can crush everyone. Think Amazon, Rightmove, Asos, etc.
I agree with you both, but Lookers and PDG have the best of both worlds. Online and show room. The online firms will do ok for convenience but MOST people when investing in something so big that they spend most days in will want to look and drive surely???
Even better for Lookers! They have 2 irons in 2 hot fires. Online is soaring. Dealerships are rocketing. LOOK has all bases covered.
Based alone on LOOK's prime online position, the valuation here needs to be up in the billions.
LOOK is (much) bigger than Cazoo, which is floating for £5 billion in a few weeks.
As the Cazoo float draws nearer... LOOK / PDG will get hotter.
All I'm saying is that showrooms and forecourts will be back with a bang now. On line will continue as is . How is that is that miserable? No major group or supermarket chain will roll over in face of competition, they will take the fight to them on both fronts.
All I'm saying is that showrooms and forecourts will be back with a bang now. On line will continue as is . How is that is that miserable? No major group or supermarket chain will roll over in face of competition, they will take the fight to them on both fronts.
All I'm saying is that showrooms and forecourts will be back with a bang now. On line will continue as is . How is that is that miserable? No major group or supermarket chain will roll over in face of competition, they will take the fight to them on both fronts.
That all sounds very "British" and determined to create misery and talk everything down ;-)
The future trends are clear. The UK online car market is soaring, online is the new high street, LOOK / PDG are at the forefront of that online car market, and the valuation here needs to be in the billions (not millions).
The car industry is now undergoing a once-in-a-generation paradigm shift.
It's no surprise on line retail balloons when showrooms are closed, however, now they are open I would expect them to decline again as I suggest most people would like to see, touch and drive the car of their choice especially a used product. The only thing Cazoo will disrupt is their foolish investors funds.
UK online car sales soaring +100% growth in 2021.
Auto1, German online car platform, is at a record £9 billion marcap today.
Vroom -- which sells 40-80% *fewer* cars online than LOOK -- is today at £4 billion valuation.
Multiple dealers valued in the billions. The industry is changing.
https://www.autocar.co.uk/car-news/new-cars/huge-rise-online-car-sales-continue-2021
Carvana = selling 20-25k cars online a month = £35 billion valuation...
Cazoo = selling 1-2k cars online a month = £5 billion valuation...
Cinch = selling <1k cars online a month = £5 billion valuation...
Lookers = selling 5-15k cars online a month = £0.3 billion valuation...
Pendragon = selling 5-10k cars online a month = £0.3 billion valuation...
Pendragon calls the UK "the world's most attractive used-car market"...
LOOK and PDG valuations need to be in the billions (not millions).
https://cardealermagazine.co.uk/publish/cinch-hoping-for-5bn-valuation-as-it-seeks-500m-investment-while-reports-suggest-cazoo-float-could-happen-next-week/220131
Cazoo now targeting a valuation of *£20 billion*.
LOOK today is bigger online than Cazoo...
Upside potential here is staggering.
https://www.ft.com/content/658f12e5-5423-4118-b59c-8c528b110344#comments-anchor
"...it’s becoming apparent now that established car retailers [such as Lookers] have a very similar proposition [to $7b Cazoo] and the positive direction of the sector as we emerge from lockdown is taking things in one direction right now"
The Cazoo effect...
https://www.am-online.com/news/market-insight/2021/04/09/cazoo-effect-and-showroom-reopenings-cause-car-retail-s-plcs-to-rally
Fair point, if Lookers never accept a takeover then whoever the buyer might be of lookers and/or Pendragon will have to make a hostile bid and then pay over the odds. Good news for us shareholders I guess