pelim
13 Jun 2019
NEW ARTICLE: Have Pendragon shares turned the corner? Turned the corner? Clearly not yet!
pelim
13 Jun 2019
Finals Shock at the strategic review yesterday. IC says get rid @ 18p yesterday. I still hold but is it time to get out? or trust the management for the longer term. I do not have a significant holding.
Hardboy
02 May 2018
Trading Update I like this company it seems well run, with good branding & a focused strategy. However I sold yesterday - part of my strategy to exit anything related to UK public spend (I've still got Lloyds, which seems undervalued still with a healthy & generous dividend, and H&T, which although UK focused is a bet against the UK economy.) This morning's update looks sound, but uninspiring, so I'm happy to have got out on a recent high. I think there is better value elsewhere; but will keep an eye on this for when the UK economy starts to pick up.
viko
01 Mar 2018
Bca marketplace share look cheap Auctions doing well,Company buying shares back
sound money
15 Feb 2018
Re: Finals In at 24.5. Like the cash generation, experienced management and clear strategy.Also a contrarian play on Brexit. Another undervalued company.M
II Editor
13 Feb 2018
NEW ARTICLE: Have Pendragon shares turned the corner? "As chief executive of car showroom business LSE
DGendragon since 1989, Trevor Finn has seen his fair share of industry ups and downs over the years.That's why when he purchased £445,000 worth of shares in his own company the day after a ..."[link]
Hardboy
13 Feb 2018
Finals Given what could have come out, I'm reassured by these. Pre-tax profits just beat forecasts, and margins "normalised" in Q4. Apart from New sales, all parts of the business showed very healthy signs of growth. Debt is at quite manageable levels, the pension deficit has reduced, dividend is up; and they have a clear policy for the next few years. In fact if the business is sound, as it appears, with an EPS of 3.7 & FY Dividend of 1.56; at <21 it's trading on a PE of around 5.6; with a yield of around 7.5%, which is well covered (more than twice) and the net assets are worth more than the company (@ nearly 30p) This all indicates it is way undervalued, and should be trading at least above its NAV. (In the current Brexit state I won't give any UK focused business a strong buy recommendation - except maybe pawnbrokers.)
Hardboy
18 Dec 2017
Huge Volume Traded today, but little effect on sp.
Hydrogen Economy
04 Dec 2017
Re: Strategy HardboyI no longer hold here so I only glanced at this but thoughts "Impressed with the speed they've come up with it since the Interims"Seems like a whiff of anxiety, if not panic,Sale of fast growing US business- to get good price. Could be a good move and would support the share buy-backs but a bit odd reaction to issues driven by problems in the UK new sales market. I wonder about getting out of the US when the economy looks to be strengthening and tax cuts possibly about to kick-in. US looked like useful geographic diversity to me.Scaling back new sales activity and increasing used sales outlets- that may be the current state of the market isn't there a danger that by the time the changes are implemented the market will swing against used vehicles (I don't know but what happens when all the dirty VW diesels hit the SH market?)Their software systems business does look like one worth building on.Market seems to have given it a cautious approval.H2
Hardboy
04 Dec 2017
Strategy Interesting new strategy announced this morning.Impressed with the speed they've come up with it since the Interims. Not sure how the market will react -Basically - Sell US business, reduce new car locations, concentrate on 2nd hand sales. In difficult times, concentrating on your core strengths is good. If this releases capital too, that is always a good thing (depending how it is used.)Is leaving a buoyant economy to concentrate on an economy in difficulty sensible? Is moving from a fully integrated car dealer to a giant Arthur Daly the right way to go? I'm guessing the markets will see it as good, but not entirely convinced.
mildmouth
22 Nov 2017
it has started! extract from article re Marshalls"In the year ending 31 December 2017 these dealerships are expected to generate £40m turnover and a pre-tax loss of approximately £1.3m before central overhead chargesClosure costs are expected to be approximately £6m which includes £2m of non-cash items including asset and goodwill impairments.*What I would like to know is how they ever justified carrying goodwill for lossmaking dealerships, why was it not written down before? Apply that to PDG and it could be scary!
Hardboy
09 Nov 2017
Lookers Gave us their Q3 update this morning, and it was a similar pattern to Pendragon, but overall the figures were looking good and it was one of today's top risers. I would have expected PDG to rise in connection, but no....
Hardboy
27 Oct 2017
Today's RNS Explains the large volume of shares traded on Tuesday. Good to see it is a significant buy, rather than rats deserting the sinking ship. Someone believes it is good value at these prices.
mildmouth
26 Oct 2017
Re: goodwill danger?? Goodwill is just a number on the balance sheet (representing payment for a business in excess of net tangible assets of that business) and has zero value (unlike other assets) unless you can sell the business or make extra profits from having paid for it. If your profits start to reduce then that goodwill will be worth less and if you try to sell the business may be worth as little as zilch.I have never thought motor dealerships (other than exceptional franchises and locations) are worth more than net tangible assets for the simple reason that in a downturn or if the franchise becomes less popular or makes more demands they can quickly become less profitable or even unprofitable, in which case the goodwill is a total write-off. At the very least goodwill should be written down each year against profits, but changes to accounting standards no longer require this if it passes what is in effect a totally subjective test by the directors. Hence, dangerous!
Mister Ed
26 Oct 2017
UK Car Output Todays production numbers for Sept. are pretty grim for domestic demand, down 14% vs Sept.16. The outlook for motor dealers depends on Brexit outcomes and how far confidence falls. I don't share PDG management optimism for 2018. A wider market decline could produce trading opportunities but a cautious approach is needed for a sector that could stay weak for a long time and depends on international politics. Good news on transitional trade arrangements is badly needed.
