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this was a bonkers low price yesterday and still is today. Under £3 is a bargain - this company has zero debt, increasing strong profits and in a better position than 2007 but at less than half the share price. This is nothing to do with fundamentals and all about market sentiment. This is a riser for sure over the next 12-18 months expect a solid and stable £4 something
but just about typical of every share in my portfolio. Great news, higher than anticipated (by 10%) dividend payment and the share price drops 5%. This should be north of £5.00 based on results, company stability and dividend. Holding mine, and you cant have them for this little
But been in since way before the rights issue - currently my average is less than a quid :) This has got a long way to go. Company is in better shape than before the melt down and has the same number of shares (after rights issue then consolidation), but now has 1/4 billion less debt. This is easily worth £5+ and come results time and the re-introduction of a dividend I expect to see it there. Hold
I agree that the short term rise here is due to the persistant rumours of a T/O (which in my opinion is unrealistic as they are the largest UK group and I dont see the others have the position, funds or requirement to take PDG over). Possible an outside motorgroup from the US or Asia may be interested but I think it is unblikely. However, the group is still in a good position, and both the industry and pendragon are on the up. I agree it is a little economy dependant, but as confidence returns this will get back up to the highs of last year, if not making inroads back to pre-crash values of 2005/2006. I think this has the potential to go north of 30p this year on fundamentals - the T/O wont happen and you are right that it is repsonsible for this short term rise. Full year results due soon and I think they will be supportive so on that basis we may not see a retrace, though we probably also wont see a massive gain from these levels until 1/2 years results come in in July.
New registrations are not the be all and end all of these companies. Look at the accounts if you dont beleive me, most money is made from used cars, then servicing/workshop/body shop and then new car sales are a very distant third. Sales volume for new cars is only really important for manufacturers - dealers sell new cars in the whole to keep the authorised franchises and maintin the lucrative approved used schemes and after sales work. This is still cheap, if I can get in sub 20p again I will. Once results are known at the end of this month this will rise. And for those who dont believe that new car volume is unimportant, look at INCH and LOOK - INCH up to a 2 year high today at 410p - massive and on no news. This is at worst a hold, and if you're not in a good buy, even at 23p
No idea but it has been hugely oversold. This should be in the low 20's pre results and expect a decent rise from here at the end of feb. If you can get in under 20p at any point before then its a bargain imho
Anyone got an idea when these are due? I am guessing sometime late Q1 but thats only a stab in the dark.
This just doesnt want to punch 400 - hopefully Lacroix and the BOD can sort out a decent dividend payment and that will give this the kick it needs/deserves
Would be nice to see these with a bit of resistance above the 20p level. 2010 results will be key, I dont know when they are due but I would imagine towards the end of Q1. If they are improving then I see no reason why Pendragon wont stabalise in the mid 20p's and maybe even get close to the consensus 30p. I still think that long term this has the potential to get close to pre-crash values but this year will be dependant on last years results and the interim statements. If you can get in again at 18p levels then for me its a very strong buy
What the issues here? Bad board? To much debt? Bad product? Lots of buys recently at the 18p level, so is this recoverable or doomed to fail and take PI's down with them? Looks like it had a decent enough history, but is there confidence in what the future holds?
The re-instatement of a div payment will take this to the next level. The company is in better shape than it was in 2006/2007 with zero debt compared to £150m back then. Share price in early 07? £6.00. This is a long term hold
Dont forget motor groups make the majority of money out of servicing and used cars. New car sales really only keep the franchise above the door. VAT went up at the start of this year by the same amount and didnt hurt sales - likewise it went down the year before and there wasnt a sudden rush. Scrappage coming to an end was much more influencial. Look at it this way your £30,000 BMW is £30,638 in January - I dont think that is going to put off buyers of these cars - in fact it hasnt. The wife's new Mazda 5 arrives on January 31st... Still, I am not sure why these are struggling, but I think it is more to do with overall sentiment rather than specifics. I hold INCH also, and the rises there are off the back of rumour surrounding the re-introduction of a dividend and the elimination of debt by the rights issue in 2009. Once the economy is well recognised as being back on track these should be back up nearer to the 2007 highs - not up there but I would expect 40-50p which is a decent climb. If INCH do re-instate the payments to shareholders, that should easily climb back to the 2007 prices of 550p ish as the debt situation is vastly improved and the business stronger for it. Both companies a strong buy in my opinion, with INCH maybe being a safer bet, but much less of a rise in % terms. This should rise almost three fold, but it will take a year to 18 months I reckon.
Yep, see everything posted below. I am amazed this is down in the mid teens. Will have to do some digging now but I cant see any obvious reasons for this. The sector is ok, with other players (Inchcape and Lookers) starting to report reasonable figures along with Pendragon and those companies are at 50% levels of pre-2008 prices. This is at around 20%. Hmmm, every sign is good but am off to start excavation
I know this company fairly well which is why i am in here (and INCH as well - same sector). Debt is less than last year, profits are up, margins are up, service revenue is up but the market is generally seeing a retrace post scrappage scheme and with continued economoic recovery proving itself to be very slow. Companies are still being very cautious, with INCH announcing more redundancies recently though I think that is due to the realisation that if you can trim fat you make a better company regardless of the wider economic situation. I bought at 2p, sold at 11p then got back in in a smaller way at 25p on the way down from the highs 18 months ago of 43pp. Long term I think this stock should come back up as PDG are a basically solid compnay (in this sector) and have not diluted the share pool, leveraged property or increased their debt so should rise as confidence rises. I am awaiting some money from the defunct Raymarine, which is due on friday. If this is still sub 20p I will be having a fairly decent top up (by my standards admittedly, but I estimate 25,000 or so). Even at low 20's I will stick a bit more in. I dont think this will rocket, but over the next 12-18 months I can easily see this being in the 30p - 40p bracket. Probably at the lower end, but if the economic recovery gains pace then high 30's are very achievable. As always, this is just my personal position. DYOR etc etc etc
Well, thats £3k written off then. Sorry for those who had more. I really didnt see this coming, I know it was tough but with recent news, interim dividend paid recently and directors buying it looked like a decent candidate for recovery. I dont suppose if part or all of the business is sold then shareholders will see any return? I am expecting nothing, but with reported interest is there even a chance?
Generally, the news is better than a year ago, the profits are better than a year ago and the outlook is better than a year ago, so I cant quite figure out why this share is now 50% of its value a year ago. All logic says it might be worth topping up at these values for the long term
like for like new car sales down 17.5% compared to August 2009 will be affecting the rise. However, August is the least important month for new cars, and is always low so each unit drop has a large impact on % results. Also, profitablility for companies such as Inchcape actually comes from Used sales and the Service business. September is more important, and with the annouces re-instatement of the dividend payments this should continue to rise in the next few months
Industry news yesterday that new car sales are 17.5% down on last August will not be helping, though long term I still think this is a solid bet. I am at a loss as to why these are really so low compared to the high last year of 43p when profits were not back and the market was more shakey than it is now. This is a reasonable buy right now, and once I get funds released from another stock I will be topping up, but with the expectation of probably not seeing a real olid improvement until well into next year.
I have been in here since November 2008, and have always believed that the company is strong and has the potential to out perform the market. I am sure 40p is a possibility, id like to see higher but I am really usure how the consolidation will affect things. I think the bottom line is, any big rise will have to be preceded by the re-instatement of a dividend payment, and that may still be 12 months away
I still think the GE will have an impact, but I am hopeful as Q1 results across the industry have been strong, company debt is reduced and we are defintly on the up. Inchcape, Jardine-Matheson and Sytner also having a good time of things so heres to a nice heathly climb. If Q2 comes in strong as well these (PDG and INCH) could well be THE shares to hold.