The latest Investing Matters Podcast episode with London Stock Exchange Group's Chris Mayo has just been released. Listen here.
I knew they never had many. i think Pendragon have more Toyota dealerships. Beside the more profitable side of Dealerships business is Warranty work, servicing and Parts. So if you look at the overall picture then the motor Industry is Inch is in pole position. The mms have taken the **** with the SP as they have done with many stocks of late but come April to Aug i think most will be 30 - 50% of current Sp.
Inch only hold a certain percentage of Toyota dealerships and like i said the overall reliability cannot be doubted. The Corrolla model has been for years the most reliable car ever built and yes this is a blip which they will correct. How many people have died as a result of this fault.. Only some cars are being affected and not all of them. If you are thinking about investing in this company then look at the fundementals and I am led to believe they are debt free had a good last quarter and they are in a very strong position. I still feel that this company will make strides as the directors and employees have recentley acquired shares which they can cash once they hit certain targets and i am led to believe that they have had a very good last 6 months to say the least. I know various employess managers and directors who have opted to take the share option scheme which i beleive is a lot more than what the current SP is. I am sure that the staff at Inch would not back a horse that was not going to deliver and these osjhare options were taken back in November. The results are due in March and they will hit targets i am sure. i work in the Motor trade as I have my own leasing business and Car dealers are not holding much stock due to current market conditions which means if you want a new car you have to wait 8-12 weeks which has led to a shortage in used cars and the used prices escalating. Also the scrappage has helped the motor industry as well and the margins have been full ask as the dealers would not discount a vehicle if it was purchased on the scrappage. Overall i think this company is in a strong position to move upwards because most Inch dealers cut costs 12 months ago so the profits are going to be positive. Did anybody notice the big Director buy the other day?
Inch will make money from the Toyota recall. The dealerships will charge Toyota standard labour rates which is a very profitable part of the business and for parts as well. The recall should in no way be seen as negative. Also Toyota is a brand who have a very good reputation for reliability.
I was fortunate to buy this stock for 1.33 last week and this stock was tipped as a buy in dec 2008 at 1.55 in the investors chronical. The indian film industry is hugh and recent deals with TV companies like Zee and so on will only benefit this company. Also the company has produced 3 hits this year wich will generate a lot of cash and 2010 seems to be a year where the indian economy is likely to grow 7.5%. Remeber Bollywood is massive in India. A good company all round.
http://news.bbc.co.uk/1/hi/business/8369994.stm, U think the scrappage scheme has worked well and also the strong used car sector. A good med to long term stock to have. Also Inch have moved to other emerging markets and they will take a big slice of the cake.
I have a friend who is Dealer principle and I was chatting to him. I asked him about Inch how they were doing really well, used car market bouyant and the scrappage scheme is helping them get a lot of business on the retail side. Also the margins are brilliant because they will not discount the vehicles on retail if they are going on scrappage ( ave punter thinks they are getting a good deal) any way as for bonuses for staff he mentions the staff have been given share options schems where by they have been given shares at market value and they cannot sell them till they get to around 65p and this is all target related. At present he said the group is well ahead of targets set by the directors. Lookers announced good results so i can only expect that this company will lead by example eventually. They have little debt and so far so good.
Top Read!!! This remind me of what Warren Buffets quote, put your stocks in your drawer and kick it shut lock it up and leave it there until something drastic changes. r\emeber broker will make lots of money off the traders. Imagine if you pick your quality stocks and leave them there for as long as you wish. You will make a lot of money God Willing!!!!!!!