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Why have you posted last year's results?
I am encouraged by the year results - better than forecasts. The tone is positive (of course) and I would expect to see a further rise in SP. 13p now good value - but it could easily open higher! My target for the SP is now 16p.
Great results and SP should raise today. No comment on Obey stake building or corporate activity though? Maybe Obey wanted to see the results before deciding next move...unless it is simply a long term investment?
The company, which has 236 franchise dealerships in the UK and nine in California, also outperformed the market in used cars with like-for-like sales volumes rising by 12.1 per cent over the year. However, the star performer in 2010 was its Stratstone business, which sells luxury Aston Martin, Ferrari and Porsche vehicles through 98 franchise points. Stratstone grew operating profits by 57 per cent to £29.2m due to strong operational leverage as its costs remained flat year-on-year. While Pendragon still has net debt of £325.5m, and although it passed on a dividend, its prospects now look far rosier than when its future was in doubt during the credit crisis. Moreover, despite its share recovering from a 12-month low of 16.5p, it trades on a forward earnings multiple of 6.6, which makes us think they will roar ahead. BUY. just shows how cheap this is now atb
Pendragon doubles profit. Tue 22 Feb 2011 LONDON (SHARECAST) - Robust demand for new and used cars helped PENDRAGON , the UK's largest car dealer, more than double full year profit as momentum carried forward into January 2011. Underlying pre-tax profit rose to £25.2m in the twelve months to 31 December 2010 from £10.1m the year before. Revenue rose to £3.6bn from £3.2bn before. Pendragon said the strong recovery in Stratstone and improvement in the Evans Halshaw divisions has continued and the results from California and the Support Businesses are encouraging. "While the group performed well in 2010, what's more pleasing is to see that momentum carried forward into January, and we look forward to it continuing during 2011," said chief executive Trevor Finn said in a company statement. No dividend payment has been recommended as it focuses on paying down debt.
The Group has significantly strengthened its financial position http://www.investegate.co.uk/Article.aspx?id=201202210700117750X
Trevor Finn, Chief Executive, commented: "Pendragon made good progress in 2011 despite turbulent economic conditions, achieving underlying profit before tax of £30.8 million, an increase of 22 per cent over the prior year and over three times the underlying profit of 2009. The Group has benefited from strong focus on maximising returns and the success of its self-help initiatives within its three key business sectors: aftersales, used and new. Encouragingly, used car performance continues to be a high point for the group and will remain a key strategic area in 2012. Our internet presence with Evanshalshaw.com and Stratstone.com is an important differentiator for Pendragon in the market and has driven our strong aftersales, used and new performance. The year ahead is set to be challenging, but given our recapitalised balance sheet, healthy cash generation, clear strategic goals and robust operational management we expect to maintain our momentum into 2012."
Thanks for your advice. So the results are due tomorrow. As for the analysts I think that they are of the mindset bad year = bad profits but whilst 2012 may be a low GDP growth year it does not mean Pendragon will not do well. Seems to me a lot of people need cars and PDG have positioned themselves well in all parts of the markets. Whilst there are low margins on new cars PDG make their money on second hand trades and after sales so they could do well and will have lower costs due to lower debt.
Welcome! The colour of the transaction on a site such of this is only a guide to whether its a buy or sell. Its often incorrect, especially when the true spread is much less than the advertised spread. So I bet there's been some selling today - especially from those who got in sub 8p, and don't want to risk bad results. Will the results be good or bad? Its difficult to tell, but the only thing that worries me is that analysts in their wisdom are forecasting worse profits next year. I think the current level is a fair price for today - but maybe after tomorrow the re-rating will continue.
I cannot understand how the market makers price these shares when during a period of buying trades the price falls. This makes no sense. Certainly I would have thought that since the Rights Issue the banks that mopped up shares have subsequently sold most of them now the price is up circa 30%. Not sure what level the dividend will be but it will be a price driver. Additionally with the reduction in debt I would have thought analysts would be making a buy recommendation with a target price significantly above the current level as the shares are currently undervalued. I would expect them to get to 23p plus within 15 months.
In the O&G industry for many years i had a spell in car sales! yes its a ruthless business and alot of controlled sale situations! but having said that i personally feel that individual approach is as important as the company sale projection/policy. Now we all no that times in sales of any nature have been tough over the last few years and i relish that I'm back on home soil in the chemical production sector. Having said that, PDG have news due HY, and from my experiences Sales and marketing can evolve and flex to its environment! a excellent investment buddy spoke to me about Pdg and having done some research my ears are pricked awaiting this.... GLA doc
Holding 160,000 shares + £11.8k cash ... orders set to buy 25,000 at 12p & 11p ... and to sell 25,000 at 14p & 15p ... and to sell 35,000 at 16p ------ orders expire 24 feb.
12% UP now!
WATCH the bid offer has been all over the place...I'm becoming convinced some sort of corporate activity is pending IMO...we'll know on Tuesday!!
Hope the results are worth the wait.
good article if you're holding....used car sales doing well http://www.motortrader.com/industry-news/pendragon-pushes-hard-car-sales/
still the target.
I'm presuming that Odey must be near max 29.9% threshold?
No RNS needed. Not a 50% rise today!!! But wait for results in 11 days. That may explain all.
SOARING NOW!!! Surely RNS is due re SP movement?
BOOM!!!! Sp continues to edge up! Heavy buying!! Obey adding to their stake again???
Holding 180,000 shares + £9.1K cash... limit orders (exp 17 feb) set to sell 20,000 at 13.25p and then 14.25p
Hope you looked at SUMM before today. Motoring along nicely now -almost 50% rise today.
Holding 200,000 shares + £6.7k cash --- Limit orders (exp 10 feb) set to buy 20,000 @ 10.75p and to sell 20,000 @ 12.25p --- * Was'nt the market just deplorably rational today ... 21st Feb seems like ages to wait.
But not much money to be made in the in the deal pendragon just ticking along at the mo