Cambria Automobiles Share Discussion Threads

[buffythebuffoon] 29/4/2016 15:42

It depends on what you mean by significant of course.

Sure the share price is not irrelevant, but unless I was a short term trader, I'd take a well run expanding company with a weak share price to a badly run business with bad economics and a strong share price that was flavour of the month.

It seems to be accepted that the share price will drop like a stone when the next recession hits. The thing is, we look as though we'll have low interest rates for a long time. People can borrow money very cheaply, and it looks like that won't change any time soon. My son in law provides finance for car buyers. The dealers want to do business, the buyers want to do business and the finance company wants to do business.

Oh, and my son in law, who earns nearly as much as David Cameron on the back of it, also wants to do business.

I like Cambria, the way it's run, it's vision, and it's future. The fact that a few others want to trade in their casino chips doesn't bother me one bit.

Buffy

[stepone68] 29/4/2016 11:14

Hi Buffy, okay you got me :-), but I do think that Cambria is the motor dealer of choice just now for the private investor, and that the price may have got a bit ahead of itself as a result. Another pretty significant drop today...

StepOne

[shanklin] 28/4/2016 11:58

IMHO, PDG's TS was more than reasonable today. Can't see (yet) that CAMB have any real problems... ...just some persistent selling for whatever reason.

[buffythebuffoon] 28/4/2016 11:12

Yeah, because investing in a company's shares is about people getting excited, not about a company performing very well.

Sigh..

Buffy

[stepone68] 28/4/2016 11:02

All of which says that CAMB was the one with the bulletin board excitement chasing it up, and people have now moved on. Time to do the same I think.

[mortimer7] 28/4/2016 10:57

Having now had my stop loss triggered & being out for now, In an attempt to cheer myself up, I just plotted a one year share price comparison chart of CAMB & other motor traders, VTU, PDG, MMH, LOOK.
The results show these price movements:-
CAMB + 23%
VTU + 8%
LOOK - 5%
MMH - 11%
PDG - 22%

Doing the same for 6 month, 2 year and 3 year comparisons CAMB is always the best performer. Unfortunately for the 1 month chart CAMB is the worst.
I'm sorry I haven't the skills to be able to post the charts on here, but I thought I'd share the results anyway as they're easy enough to check.

[mortimer7] 26/4/2016 15:36

Down again today despite buys outweighing sells. Just had to move my stop loss down to avoid losing these.

[jaf111] 21/4/2016 20:50

Yes indeed, the whole sector is down....PDG LOOK as well as VTU....all seems a bit odd with the market remaining strong. IMO CAMB remains the pick of the bunch and I await the interims with confidence.

[mach100] 21/4/2016 13:09

It seems like Cambian Auto has a reverse gear. Vertu has fallen quite a way too. Perhaps the sector has engine trouble JAF as the sector is quite buoyant. We might need a new PPI scandal to fuel further growth.

[jaf111] 21/4/2016 10:41

Interims out 10 May....
7 March Trading Update "substantially ahead".....
Car market remains very buoyant
Struggling to understand recent share price weakness!!!
Have bought more...

[mortimer7] 06/4/2016 09:35

Yes, good news for the motor retail sector which continues to buck the trend.

[effortless cool] 06/4/2016 09:13

Thanks Mortimer, all very encouraging.

[mortimer7] 06/4/2016 09:12

SMMT figures out this morning for March, all good for CAMB:
The UK’s new car market grew by 5.3% in March, making it the biggest ever month since the bi-annual plate change began in 1999.
518,707 new cars were registered in March, only the third time the market has surpassed half a million units in a single month.
Growth was seen across all sales types in March: private and business registrations increased 3.8% and 15.3% respectively, while in the fleet sector demand grew 6.0%.

[mortimer7] 06/4/2016 09:07

Ref Brexit for what it's worth, SMMT tweeted this on 31st March:

"71% of our members say #EU has a positive impact on their business"

[effortless cool] 04/4/2016 21:59

I guess the share price action is answering your question.

BREXIT = weak Sterling = more expensive imported cars = lower revenue.

Perhaps partially compensated by a pick-up in used car transactions.

[cnx] 03/4/2016 18:42

do you mind if I spoil this excellent thread for a few days , to, say apr 6?

what opinions do we have on brexit or otherwise? what effect on CAMB?

[effortless cool] 13/3/2016 10:32

Update added to header to reflect latest trading statement.

[buffythebuffoon] 07/3/2016 23:35

There are always clouds gathering on the international economic horizon. In the meantime, the low interest rates will persist, and make cars very affordable.

Buffy

[ed 123] 07/3/2016 16:05

CAMB look to be a tasty morsel for the big boys.

Why would you think anyone would be interested atm?

The industry has had a few years of increasingly good times. There are clouds gathering on the international economic horizon. Surely it is 'risk off' time for the big boys?

Anyway, Cambria themselves have a acquisitions debt fund at the ready. Maybe they'll bulk up just ahead of the next downturn? ;-0

[buffythebuffoon] 07/3/2016 15:20

CAMB look to be a tasty morsel for the big boys.

Buffy

[shanklin] 07/3/2016 12:40

My guess would be that margins are improving which, in a low margin business, could be significant in terms of profitability.

[ed 123] 07/3/2016 12:06

Hi stepone68.

No problem at all. Sorry, I didn't intend to appear dismissive of your post 163. I did appreciate your answer ...... but thought I saw something else. :-)

Time to sell? Certainly there's more uncertainty about of late. That has impacted generally on share prices. Cambria Automobiles depends on the health of the UK economy. So far (as might be surmised from recent sector trading statements) it is ok. The question is, how will the UK economy look 12 months from now?

[stepone68] 07/3/2016 11:03

Sorry, Ed, didn't mean to be teaching you to suck eggs ! My own view on this update is that it seems decent enough, but the share price reaction makes me think it might be time to sell.

[mortimer7] 07/3/2016 11:03

4 years of steady growth in terms of dividend, EPS, profit.
50% uplift in share price since since March 2015.
Future growth underpinned by strategic acquisitions.
CEO holds 40% of stock.

[webclick99] 07/3/2016 10:43

In these situations, when I read a somewhat ambiguous and unclear update (like today's), I go back and re-read the previous trading update from 12 months ago. Well 12 months ago, the performance update was very clear to me. They also provided a pre-close update, and today they did not. So make of that as you wish.