Cambria Automobiles Share Discussion Threads

[effortless cool] 29/6/2021 11:54

Well my votes against are now all in (AJ Bell).

[gdjs100] 25/6/2021 07:54

MMH significantly ahead of expectations and FY result will be well ahead of Group's historic record result.Read across for CAMB I would expect.

[gdjs100] 23/6/2021 09:48

You can bet they'll be trading their socks off.

[effortless cool] 23/6/2021 09:09

Vertu ahead of expectations this morning.

Of course, we don't have any expectations to be ahead of ...

[gaiusgracchus] 11/6/2021 08:02

Board is despicablly craven

[gdjs100] 10/6/2021 08:21

60k CAMB traded at 81p in closing auction and 30k also at 81p this morning. Someone is buying. As it's auction and not RSP it's likely to be an institution. Interesting. You have to assume the seller at 81p would have been a "yes" and they are taking the extra penny as it's available, and those votes have been transferred to the buyer at 81p who will be a "no".

[davidosh] 04/6/2021 14:45

This Monday on the Mello soapbox a fund manager speaks out regarding all the lowball offers...

Soap Box..... Are cheap bids stealing good British companies….and are Boards protecting shareholders?

[mortimer7] 04/6/2021 09:27

SMMT have announced the total number for New Car registrations in the UK for the month of May as 156,737. May 2020 was 20,247 and May 2019 183,724.

[gdjs100] 02/6/2021 16:26

No-one believes Lavery will get it away at 80p... he'll either have to bid higher, pull out, or the bid will fail to get enough acceptances. In all three circumstances the shares *should* be higher as a result.

[effortless cool] 02/6/2021 15:50

Taken from the 17 May RNS:

"Such an offer, were it to be made, would be at a price of 80 pence in cash per Cambria share, which the Board of Cambria would be minded to recommend". Mark Lavery, who is behind the MBO, already has a 40% shareholding.

The current mid-price is 83p and there is a market to sell up to 75,000 shares at 82p. Hence, there is clearly significant buyer demand at prices above 80p.

Does anyone have any ideas as to what is going on?

[mortimer7] 21/5/2021 11:31

On the Aftersales gross margins:
Just a guess, but in the absence of any specific data in the financials maybe CAMB Aftersales are more weighted towards parts sales than VTU & LOOK. Parts Dept margins are far lower than Service, so the more weighted towards parts sales, the lower the overall Aftersales margin.

Internal revenue is shown on the published financials.

[effortless cool] 20/5/2021 14:43

Good questions, mm84. I'm afraid I don't have good answers, however.

[mm84] 20/5/2021 14:35

Does anyone know why Cambria has lower aftersales gross margins in comparison to Vertu or Lookers?

I understand the difference to Pendragon as Pendragon compares the gross profit to the revenue coming from external customers whereas the other two compare it to both internal AND external customers.

Could it have something to do with scale advantages?


By the way, does anyone know what the internal (or inter-segment) revenue is?

Comments?

[effortless cool] 17/5/2021 18:00

Agreed, molatovkid. It suggests a weak board, very much under the thumb of the CEO.

[molatovkid] 17/5/2021 07:40

Whilst I am not familiar with the background here, a board recommended offer less than the market price seems a bit much.

[mm84] 14/5/2021 22:28

I would argue that the current price being above the £0,8 mark says nothing about what's going on in the heads of the management team. If we were to take the market's opinion as a guide we would all be believing in the efficient market theory.

[jaf111] 14/5/2021 11:29

Indeed Mortimer.....and with share price edging up further (82.2 / 84p) a higher offer must be more than a possibility.....

[mortimer7] 14/5/2021 10:59

offer deadline day on Monday:
"Accordingly the Management Team must, by no later than 5.00pm on 17 May 2021, either announce a firm intention to make an offer for Cambria in accordance with Rule 2.7 of the Code or announce that it does not intend to make an offer...

[jaf111] 06/5/2021 17:32

Further to my post 487 more reported trades above the 80p indicative bid price.....inc 58,000 share @ 82p & 77,802 @ 81.5p.

Maybe things about to get interesting???????

17 May deadline so not long to wait........

[gdjs100] 05/5/2021 12:38

I don't know. Maybe it's wishful thinking but in order to get to 75% to allow them to delist they would need to get 56% of external shareholders to vote in favour. Can you see that happening at 80p? I'm not sure I can. In order to get to 90%, for the squeeze out, they'd need 83% of external shareholders to accept.I take your point on the price being stuck to 80p but I think that's not necessarily due to perceived certainty that it'll go through, more like a floor on the price (if it does go through). People are paying 81p today but there is no size available to purchase from market makers at all as they do not wish to be taken short and there are no sellers around.

[effortless cool] 05/5/2021 12:00

Thanks for clarifying. I think that your conclusions are correct but that the outcome you describe is very unlikely. As JAF111 says, the market is telling us that the MBO is likely to succeed. It would be nice if we could flush out a rival bid but, with the CEO holding 40%, I think that is highly improbable.

As to financing, I assume that they are talking to PE and/or institutional investors, for whom £48m is small fry.

[gdjs100] 05/5/2021 11:39

Hi EC,

That wasn’t quite what I meant. If they make an offer of 80p, and get past 50% pledged ownership but not 75%, we’ll have a freely floating company, but I believe those who accepted the offer will have sold their shares to the consortium at the offer price.

I’m not suggesting they’ve been buying shares in the market.

Subsequently if the share price moves lower I’d be surprised given these results - my feeling is without this bid hanging over our heads we’d be north of 100p by now.

They might not be able to get the financing for a number of reasons - 48m GBP isn’t a trivial sum to find for the concert party.