On a cash adjusted PE of about 3.5 Certainly looks like value. I suppose it's too small to attract institutional buying but surely this has to rerate on the back of this morning's RNS. If they can build upon the momentum in sales this could multibag very easily, as well as deliver decent income.
Possibly but given they were/are paying out 75% of cash flow as dividends, the cash flow was/is real. I knew he was investing in/trading this stock as it was mentioned on the ********** podcast I listen to. I try and stick to net cash businesses but O&G is inherently risky no matter how good the fundamentals look. I'm accepting my paper loss as my own, hoping that VGAS's fortunates will change...
Interesting article but the book value of stock could be misleading if the price of used cars has crashed as the trading update suggested. One of the broker notes I saw said they are expecting write downs on stock.
Still, a 30%+ return for anyone who bought the stock I dumped. Not bitter, much.
Average house prices in the UK increased by 1.2% in the year to May 2019, down from 1.5% in April 2019, the Office for National Statistics said.
The lowest annual growth was in London, where prices fell by 4.4% over the year to May 2019, down from a fall of 1.7% in April 2019 and the lowest annual rate in London since August 2009 when they fell 7%.
The North West was the English region with the highest annual house price growth, with prices increasing by 3.4% in the year to May 2019.
Not planning to hold this long term but there are several risks here. Tom Watson (Labour Deputy Leader) has been very vocal about his views on gambling and now Boris is talking about an early election. Following FOBT, increasing the age limit to buy lottery tickets and banning in play advertising is further evidence of the changing UK political attitude towards gambling. When you are as leveraged as GVC is, any threat to profit is justifiably magnified. That said, the USA is moving in the opposite direction and the opportunity there is clearly huge. As long as the business continues to generate plenty of cash and de-leverage the balance sheet, it will do well in the longer term. There is talk of consolidation in the industry, perhaps it may even attract a bid from across the atlantic.
Price action this morning has been disappointing, particularly given it fell in the run up to the statement.
I sold out a couple of weeks ago and I'm surprised it has continued to move upwards despite volatility being quite low. There seems to be improved sentiment in the sector but you can't afford to be complacent.
Investors Chronicle put a sell tip on CMC. I think it will be very sensitive to market volatility given it's hovering around break even and well above cash value now.
From Investors Chronicle article on LOOK: "Used car prices fell 8 per cent over June 2019 as consumer demand dropped, according to Lookers’ house broker Peel Hunt. The broker said that the retailer would feel the impact through stock write downs, harming gross margins."
Decent recovery. I guess a lot was accounted for by the recent falls. PDG actually came off worse today. Think I'm right in saying that WLTP affected H2 last year so perhaps weak comparatives will help.
I didn't time my sell very well this morning but I can't say I regret selling. I Tthink hink things will get worse before they get better in this sector.
I strongly agree with this comment "historically a better performer than similar companies". I think the best opportunity is in shorting some of LOOk's peer group. FCA aside (though wouldn't be surprised if others turn out to have skeletons), these issues are industry wide.
I'm surprised other motor dealer stocks haven't fallen as LOOK has typically outperformed the market. If LOOK is struggling, it stands to reason that others are to a greater or equal extent. I've opened s short on MOTR given the significant pressures on used sales mentioned in the trading statement.
Lost a lot of money on LOOK this morning. One of the comments in their trading statement was "margin pressure in the used car market has significantly increased, notably during the month of June in which we took a disciplined approach to managing stock." Can't see how this wouldn't have a pronounced effect on MOTR. As much as I like the company, the market is grim and seems to be getting worse.
Clearly an effort to make this a more Spanish company, Spanish shareholders, Spanish CEO, which should help in a PR battle with the Spanish government for the mine to be built as an act of economic self help.