Aa Share Discussion Threads

[haroldthegreat] 01/8/2017 18:31

Did he join RAC or green flag ?

[minerve] 01/8/2017 18:29

We live on a debt mountain with a small country perched on the side! ;)

[spob] 01/8/2017 17:16

Bargepole stock imho

and has been since the float


You are not buying shares in the AA

you are buying shares in a very large debt mountain with a small company perched on the side

stay well clear is my advice

[stevee1234] 01/8/2017 17:03

Liberum cuts AA target price, but reiterates 'buy'
(ShareCast News) - Analysts at Liberum were undeterred in their positive view on AA's shares despite news of the ouster of its boss, Bob McKenzie, for "gross misconduct" and the company's decision to guide towards a full-year performance in-line with expectations.
Although it might be lost on investors on Tuesday, there was tangible evidence that the outfit was being successfully turned around, they said, emphasising that the company's free cash flow generation continued to be "very strong".

"The transformation may have taken longer but there is tangible evidence of improvement. Expect a negative reaction today but the [estimated free cash flow] yield should provide a floor."

However, house broker Liberum lowered its target price on the stock from 340p to 300p, albeit while reiterating its 'buy' recommendation for the same.

According to Liberum, the shares were offering a free cash flow yield of 12.7%.

On the back of the company's guidance, the broker also nudged down its estimate for AA's full-year operating profits (EBITDA) from £414.0m to £403m.

Due to the leverage in the business that translated into a 6% cut to their 2018 earnings per share estimate from 23.4p to 22.0p, it said.

[wllmherk] 01/8/2017 16:52

Debt still a worry to me, been burned before by highly indebted companies eg Carillion

wllm

[pugugly] 01/8/2017 14:18

It is the revenue and margin contractions - Gross misconduct is (imo) very little to do with it,

[nick rubens] 01/8/2017 13:39

Mkt Val contraction continues. Todays update not particularly good.

[cwa1] 19/7/2017 08:39

Barclays Capital has initiated coverage of AA with a Overweight rating, price target 280.00p

[cwa1] 05/7/2017 07:36

Don't know if there's any interest here but today's announcement:-



.....reads well to me and sounds like a company getting to grips with the debt issue at least.

[bigboots] 09/2/2017 12:15

20% upside from here, goods trading statement yesterday, see this as a very cheap stock

[foxking] 17/11/2016 12:06

Interesting news today . Has to be positive IMO

[thomasthetank1] 05/4/2016 12:20

Read Liberum’s detailed note on The AA (AA/), out this morning, by visiting www.research-tree.com …
"FY 16 results in line with pre close guidance and maiden FY dividend of 9p as expected. FY 2016 net debt up slightly on the interim level as expected, but lower than expected capex. No change to recently updated earnings estimates, but continued uncertainty over BEPS. IT integration is on track and cost savings are coming through, with £40m expected 2019. Net debt nudged up for 2017 due to higher in year capex and we reduce our DPS estimates. Brand investment restrains margin at Roadside but EBITDA stable. Slowing rate of decline in Personal Members and positive KPIs. At Insurance Services, volumes weak, but margins..."

[gucci] 23/12/2015 10:29

Heading to 340p

[market sniper1] 26/10/2015 11:05

Aa: Berenberg Bank starts a new coverage with a buy, sets target price at 350.00p.

[market sniper1] 23/10/2015 14:50

Peeps chasing AA. today.

Lovely move up during the day, tremendous value.

[spob] 14/10/2015 13:46

net working capital

ie, current assets minus ALL liabilities = MINUS 3.5 BILLION POUNDS !!!

[spob] 14/10/2015 13:44

yes very appealing, if you close your eyes and pretend the HUGE liabilities do not exist

unfortunately they do

and woodford is a plonka if he is buying more of this ' HUGE DEBT with a small company on the side '

[market sniper1] 12/10/2015 13:48

AA. AA PLC

Great opportunity

One stock which has failed to beat the FTSE 100 is roadside recovery and insurance business the AA (LSE: AA). Its shares are down by 14% in the last year while the FTSE 100 is flat. However, although the AA is due to post a fall in its earnings this year, there is a potential catalyst next year when the company’s bottom line is forecast to rise by 16%. This puts it on a price to earnings growth (PEG) ratio of just 0.7, which indicates that now could be a great opportunity to buy for the medium to long term.

Furthermore, the AA currently yields 3.7% and, with dividends being covered 2.4 times by profit, there is significant scope for shareholder payouts to rise at a rapid rate in future years. For example, were the company to pay out 67% of profit as a dividend (as opposed to the current payout ratio of 42%) it would mean a yield of 5.9% and potentially improved investor sentiment.

[market sniper1] 12/10/2015 11:53

AA broker views

Date Broker Recommendation Price Old target price New target price Notes
25 Sep Liberum Capital Buy 278.60 450.00 400.00 Reiterates

[mapmagic] 26/3/2015 07:48

I think its called making a mug out of PI's!

[spob] 25/3/2015 15:34

I think its called Voodoo Finance

[spob] 25/3/2015 15:32

I think I was wrong with the interest calculation above

This company paid £211 million pounds in interest last year !!

[spob] 25/3/2015 15:25

Mcap 2364m

net debt 2966m

pension deficit 434m

Total of the above = 5764m


profit forecast for next year 177m say 140m after tax


5764 / 140 gives a true pe ratio of 41x !!!



Also they are paying an average 5.9% interest on that net debt of 3 BILLION POUNDS = 175m pounds per annum !


If you hold shares in the AA, you have shares in a huge debt mountain with a small company perched on the side