Member Info for edben

More of a profit delay than a warning. This company doesn't overstate or hype its forecasts, just tells it how it is and delivers.

Seems to be an exaggerated response in a nervous market

There is only a relatively small number of shares to trade and the price will only move when people want to buy or sell a sizeable chunk. Until that happens (or when the short is closed) then the price will have to move sharply. Patience!

I doubt it until the balance sheet is stronger and earnings ensured. When decent divis do start again these shares can return to their old role as steady payers and should be rerated dramatically.

Yes - 5 times. For every 1 share held before today there are now 4 extra shares added.

GRID, another battery storage co has stopped its dividend as its market deteriorates, expecting recovery by end of year. Whether and how GSF is similarly affected will, I suppose, depend on individual contracts. So - risk of divi vanishing for a bit but longer term improvements???

Rising bond yields mean income streams (like GCP) are worth less. You can earn a safe 5% in a bond so need to see more from a share like this. But - the income from GCP, though riskier, should grow steadily (and one day interest rates will fall a bit ...)

So what? Lookers has enough franchises to sell cars with every kind of engine available. Company car drivers get a great tax deal for EVs and won't argue if they are given one - these are volume sales which keep the manufacturer relationships healthy.

If a bid or similar will come out of this , then great. But the players are longer term strategists. Another scenario is that the group has successfully migrated from a catalogue supplier to online gaining new and younger buyers, overcome hiccups in changing accounting for credit sales and finally settled the longstanding dispute. This leaves a solid long term viable and profitable operation. A return to a reasonable and growing dividend is now feasible and should result in a major rerate of the share price. May take a year or so but a win for every shareholder

The figures don't seem to make sense but they are ploughing on with partnership deals and hype. Could be that they believe their technology to be so impressive that they expect to be bought up by a big player for the product conceptual value?? If this is the plan, then just how clever is the kit and how well is IP protected and how hard to copy????

Lots of shares were marked down yesterday. This is a sub-£100m company. Probably almost nobody else is watching each tick as closely as you are. It does seem to be doing the right things to succeed so best to wait patiently and look at the price less often ...

All my buys today are shown as sells. As ever the stats are quite misleading!

Lookers was written up by the Times Tempus column with a Buy recommendation. Confirms the views in these discussions.

The motor sector will regroup to fight Cazoo and Cinch so expect consolidation. Constellation has 20% of Lookers, a top takeover target - enough to block a sale. Against that, though, they won't look at a bid of 110p from another party but would talk them up a long way before selling out. They don't need to do more till they cross 30% (which provides potential support if the price does drop far). So, this may turn out to be a strategic hold for them and a one way bet for long term holders.

P/E of 15 is quite reasonable if you think the management usually do sort out problems and know what the market wants so could look good again in 2023. Worth averaging cost down by topping up then waiting... ??

The forward revenue is probably in 'prepayments'??

This management has dived in to rescue this company. They have sorted out the balance sheet, put it on an even keel but then been hit by new problems. They do seem to be learning fast how to cope with inflation but aren't yet delivering what was expected. The product will never go out of fashion but competitors will limit price hikes. If they get this right (or sell out at a decent price) it will be a winner; if not ....

It's an AIM share now so not on everyone's list to follow ...

It usually means they will look for a buyer. If they find one then could be good news (bought out at a decent premium). If not, we will see a slow grind back to expected profitability. This company does seem to keep getting caught up in cost rises which it hasn't learned to anticipate. But - it couldn't be a more basic product, there will always be demand.

Patience! They haven't yet said how big a divi yet. Private equity is one possibility or maybe Cazoo if their plan doesn't quite work out. But - we'll be much better off if the shares creep beyond £1 before a buyer appears and offers a decent premium.

It seems that they have not set a reserve against this claim. PPI compensation court cases have often produced surprising outcomes for Lloyds and other banks so it is difficult to forecast what may happen. UK courts cases never result in US type payouts - our law is different; the max you can chase is what you prove you lost with no penalties on top. Legal fees will mount up so normally this type of row ends up with a settlement on the basis of paying up is cheaper than paying lawyers. I am happy to wait. and wait. and wait...