Share Name Share Symbol Market Type Share ISIN Share Description
AA LSE:AA. London Ordinary Share GB00BMSKPJ95 ORD 0.1P
  Price Change % Change Share Price Bid Price Offer Price High Price Low Price Open Price Shares Traded Last Trade
  +0.90p +0.54% 167.70p 167.80p 168.20p 169.90p 166.90p 166.90p 2,865,375 16:35:02
Industry Sector Turnover (m) Profit (m) EPS - Basic PE Ratio Market Cap (m)
General Retailers 940.0 100.0 25.3 6.6 1,023.04

AA Share Discussion Threads

Showing 76 to 98 of 100 messages
Chat Pages: 4  3  2  1
DateSubjectAuthorDiscuss
12/9/2017
07:54
Same position as Yell was, drowned in debt eventually through heavily diluting fund-raising!
bookbroker
22/8/2017
15:20
santori, very good summation.
essentialinvestor
20/8/2017
12:33
I agree Minerve, value opportunities can be found occasionally in boring or declining markets, but you need a variant perception in order to buy-I cant see one. I think the key question is how a late stage company, AA, with flat operational revenue/profit, in a strong economy, make just £42m of net cash flow, and then repay in under 3 years, £578m of debt (1st tranche), bearing in mind that the UK economy will probably enter a recession in late 2018, or early 2019? I think AA's Insurance Services are vulnerable, and in a downturn customers turn to lower cost smaller Roadside Assistance providers, or just go without. EV/EBITDA of 9.5x is not cheap, and at some point there could be a perceived or real solvency risk if the economy enters negative growth. The dividend cover is low and I think the stock is best avoided for now, and perhaps look to buy if there is some form of capitulation. The other scenario which could happen is that the company grows out of its debt burden, or simply stagnates, and muddles it's way through-unlikely but possible. Over the last 2/3 years the company has repeated a pattern of a sharp fall followed by a stabilization, then a modest rise, followed by a sharp fall again, it will be interesting to see if that pattern holds. Volume has picked up and it looks like a floor of some kind might have been reached.
utsushi
16/8/2017
10:16
santori I am not implying what the trend maybe. All I am saying is because electric cars are deemed to be more reliable doesn't mean that the opportunities and markets for AA become less attractive. Lots of things are at play including strength of those already in the market, rate of decline etc.. Some times opportunity is best found in 'boring' and declining markets. Many investors always look at the growth markets and it is these that generally attract too many players who have to invest a disproportionate amount of capital in order to remain competitive.
minerve
16/8/2017
09:47
Minerve, Yes, you maybe right about smaller "on the margin" operators being forced out of business, nobody knows for sure but I would not want to bet against the trend-you maybe exhibiting a little bit of "narrative fallacy framing bias" here ! Large cap stocks that go ex-growth rarely recover, unless they can discover a "new line on the same pitch", Rentokil for example went global with its pest control business, pre its operations were stagnant or in decline, AA is encumbered with significant debt, flat cash flow, negative long term trends. AA's great strength is its brand recognition which is high.
utsushi
15/8/2017
11:47
The wonderful affects of good old asset stripping, erm sorry, private equity.
minerve
15/8/2017
11:41
Net debt/EBITDA @ 6.77 on 2018 estimates.
essentialinvestor
15/8/2017
11:33
Yes Essential, I agree. What is the multiple to EBITDA atm?
minerve
15/8/2017
11:12
You can't get away from the debt imv, it overshadoweds everything else.
essentialinvestor
15/8/2017
10:50
Many a mature/dying market have great money making businesses. Just look at tobacco. Also, I am not convinced the switch over to electric is going to be fast. It will probably be fast in developed countries - they have mature electric distribution networks with inherent redundancy. Not so in developing countries. The oil majors and those invested in oil are not going to roll over and see their businesses dwindle. They will pump more and more oil making it a serious economic competitor to electric. At the end of the day it will be down to regulation and government interference but if oil majors are large net contributors to government revenues then in some countries oil and combustion engines will be around for a very long time.
minerve
15/8/2017
10:45
Less work for breakdown services doesn't necessarily mean bad news. It could mean that operators who are small and work 'on the margin' are forced out of the market and large incumbents like the RAC and AA mop up the business on greater margins.
minerve
13/8/2017
14:25
Glencore CEO Ivan Glasenberg says that 30% of all cars maybe electric by 2030, electric cars don't break down so much, less moving parts, are easier to assemble, there-fore less work for AA in the future, rival RAC is doing a decent job, where is the growth going to come from to take on the debt mountain? Sometimes one of the great strengths of an investor is to be patient (quote TPG, David Bonderman), but equally when great demographic/economic/technological shifts are occurring, you just have to get out of the way as soon as possible. No position held.
utsushi
11/8/2017
14:04
Higher from here in my view. Plenty in the price already.
moopdoom
10/8/2017
08:08
Floor reached
anthonyspencer1
09/8/2017
09:33
Legal and General to take out the insurance arm of AA.
oakville
08/8/2017
11:18
The hedge funds who sold this company to the market are aware of the state they left the business so are well placed to short. I can remember the care home business Southern Cross well hidden was the fact that rentals of the care homes were inflation plus a an inflated figure of course this ended in the liquidation of SCHE another Hedge fund float.
wskill
08/8/2017
10:30
Broker downgrade £1.75. Looking for lower than that as entry point
tsmith2
06/8/2017
11:50
The AA does not have the Great British motoring brand reputation it once had IMO. I don't mind a CEO being involved in a fracas. It's the CEO's who drive a company into crippling debt and meanwhile fleece as much money from the company and shareholders in salaries/bonuses/options etc that they can get away with, that bother me. Is the dividend safe? There are better Yields on some blue chips out there who have earnings growth forecasted.
nick rubens
05/8/2017
21:22
http://www.telegraph.co.uk/business/2017/08/05/aa-flotation-backer-glg-bets-falls-breakdwon-companys-shares/
minerve
05/8/2017
12:39
The incident that led to the sacking. https://www.thetimes.co.uk/edition/business/insurance-chief-at-centre-of-aas-jeremy-clarkson-bust-up-dg7jwgrfs
ed 123
04/8/2017
19:32
Another Woodford disasters RM2 and Allied Minds to add but 2 - Just goes to show no one can walk on water for ever.
pugugly
04/8/2017
12:38
Buying opportunity? Seems oversold on the basis the Chairman assaulted someone.
trogerswinning
04/8/2017
09:25
Just broken support line, could go decently lower.
tsmith2
Chat Pages: 4  3  2  1
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