PDG and LOOK are both transitioning to *online-first* car sales. That is where the future growth sits. Both firms understand the modern world is about becoming the "Amazon of cars". Browse, click, finance, buy, collect, deliver, aftersales, OTA updates, rebuy, repeat.
Investors need to be thinking in the billions (not millions). Lookers is no longer a car dealer, it is a tech unicorn. Click and Drive is one of the biggest online players in the UK. If the online unit is spun off and floated in New York, where investors are much more advanced, like Cazoo, upwards of £10 billion is possible, or £25 a share.
London shopper footfall this week soared +60% to +125% YoY. Shop rents (costs) are -30% cheaper. Vaccinated shoppers have billions of pounds of saved cash and are ready to binge. After a year of slobbing out in trackies, people will want to dress up smart. Lots of strong market tailwinds for TED.
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...
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).
Lookers is already up +300% in a few months and the online car revolution has only just begun. LOOK can be a millionaire-maker. Cazoo is pushing car-dealer valuations into the billions. Cinch, Driverama or Carvana will need to spend billions to keep up.
TED also looking to have huge upside potential here. A £50m EBITDA in 2022 and similar rerating to Dr Martens, a China fashion boom, NXT hovering like a vulture, will send TED to £4-6 in a flash.
You're thinking of the "old" Lookers... You need to view it as the "new" Lookers... Lookers (LOOK) today is 5 times bigger than Cazoo online... Cazoo is about to float its IPO for £5 billion... Lookers' current marcap is just £0.3 billion... Cazoo, Cinch, Driverama and Carvana have billions and billions ready for takeovers... Lookers owns 7% of the whole UK car market and 10-15% of the online segment... The upside potential for Lookers is huge.
Back to TED -- closing near the daily high. The highs are getting higher. Punching thru the 155-160p resistance line. All bullish signs.
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.