||EPS - Basic
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Pendragon Share Discussion Threads
Showing 3476 to 3498 of 3500 messages
|Oh, I see.
|Vulnerable to takeover at this level?|
|I don't know. Vulnerable to what?|
|This one is vulnerable- anyone agree with this point of view?|
|As an Evans Halshaw aftersales employee I can safely say the company is incredibly badly managed from the top we have a call centre paid on number of bookings so they call and badger customers of 6 month old 2000 mile cars to come in for free health checks no chance of any profit after a tech getting paid a min of £8 an hour spends 20 mins checking car and paperwork and car is washed at my location the competition have worked out we take any booking and send their low paying warranty work to our dealer properly managed we could do 3/4 of the work for double the money this is not laziness this is rant about how we all could be better off|
|I am very much of the same view as expressed in your final 2 paras. My patience is stretched, though, by the idea that as a cyclical business, if this is what the 'good times' look like, what about the bad?!|
|Yes, Jeffian. I guess traders are voting for their expectation of a fall in the sales rate of new cars in the UK. The sector is cyclical without Brexit, and Brexit has yet to take place.
I'm holding but did sell a few when they announced the share buyback plan. Imv, they should have paid down their debt and/or tried to buy the freeholds of their leasehold premises. They could have made the business more recession proof. Instead they are using the net cash flow to boost eps ...... vanity over solidity.
Still holding because I don't expect a big Brexit impact and because aftersales work (from which much of the profit is derived) and used car sales should both hold up much better than new car sales in any downturn.
Dividend is good and, imv, patience should be rewarded on longer term view.|
|I find this share rather frustrating. It seems immune from the good news which persists over car production and sales. It isn't just Brexit; it's been languishing since the turn of the year.|
|Yes, Typo56. Good call. 18.7 Million shares traded in the closing auction.
Closed at day's high of 31.8p, so maybe we'll see a further rise next week.|
|Ta, Typo56. Yes it's looking a bit volatile even now (dropped quickly by 2% and then heading up again).
Current year p/e ratio? 7.5? If the Brexit thing goes without disruption to the sector, current share prices will have been bargains. Some investors are reducing exposure - fair enough. My view, fwiw, is that even if there is some short-term disruption, the car dealers should come through it. The UK will continue needing cars and the servicing of them.
Edit: Bought some at a whisker over 30p, btw. Assuming the UK doesn't hit a big downturn, I should be ok with that investment, even if Brexit issues bring further volatility.|
|There's going to be a bit of volatility in PDG around now, due to exiting the FTSE 250 index tonight. Don't be surprised to see a large uncrossing volume (perhaps 10m-20m) in today's closing auction as funds adjust their investment weightings.|
|Selling is continuing today.
The other motor traders have come back a bit recently but PDG still edging down. Any thoughts? Negatives?
Worth a nibble at 30p? Goes interim ex-dividend next week. Approximately 5% full year dividend yield.|
|Very solid results all things considering! Odey certainly confident.|
|Well Odey still likes it. His holding up over 17% now.|
|buybacks continue. Added a few at 28.5p|
|It's hard to tell. It may just be up on the fundamentals.|
|well, whatever people think of the buybacks, at least it is helping to increase the shareprice ...|
|I always think "If you don't like it, sell" is a rather lame response. Managers don't own the business. Why should shareholders be bullied out of their stock? The point is that managers don't control the share price, the market does. They hope that by artificially boosting eps and nav, the share price will reflect that but, as my ETI example above shows, they can't control that. They are taking real cash and spending it in a way that it could easily disappear in a puff of smoke. There is an argument for buying in your own debt if it is trading below par or equity if it is trading below asset value, but that is not the case at PDG where they are paying a premium to the NAV of 27p/share (and that includes a good slug of goodwill). They're paying £1 for 77p. If shareholders feel they've had value from this 'investment', good luck to them.|
|Simple, if you guys don't like the buyback and think you know better than the company, sell it to the market now that the buyback perhaps offer you a better opportunity to sell.
Personally, as long as the management is prudent and it can leverage reasonably cheaper long term debt at much lower cost than equity, say it can borrow on 5 years or more at lower than 4-5 % interest, it is better than the current equity capital cost at almost over 10% with a pe lower than 10.|
|I hate buybacks. They masquerade as a "return of value to shareholders" but they are nothing of the sort. They return all the value to some of the shareholders - who are promptly no longer shareholders! Of course, the reduction of shares in issue inflates both the Earnings Per Share and Net Asset Value per share (a cynic might wonder if these are metrics for Directors' performance bonuses!) but whether that is reflected in the market value of the shares we continue to hold is questionable. Enterprise Inns were the worst culprits, blowing £1bn (yes, really) buying shares up to £8 which went as far down as 26p. They're doing it again now - they're spending £25m (equivalent to a 5p dividend) and the share price is lower than when they started!
If companies consider that they have 'excess cash' and want to return it to shareholders, they can pay it out as a dividend, pay it out as a return of capital, or make a free scrip issue of additional shares. THAT is 'returning value to (all) shareholders'. Buybacks are not.|
|Yes, it's only £20M. At an interest rate of, say, 5%, it means they'll only waste £1M of shareholders' funds each and every year going forward. The company is not in a net cash position; it has borrowings.
On the other hand, buying up freeholds is good for shareholders, as it increases eps while keeping hold of the asset value.|
|Exactly, it's £20 mil, perfectly manageable. Not generally a fan of buybacks, but comfortable here due to lack of acquisition opportunity as stated.|
True, but what would you think if a China meltdown (or whatever) brought a recession and PDG shares traded at under 20p again? That cash would have been very useful.
Looking for the positives, at least it's only £20M. It could have been more.|