Pendragon Share Discussion Threads

[jeffian] 20/11/2014 22:13

That was my target too, and it hit it for a short while intraday last year but I was too dozy to act on it!

[1nf3rn0] 20/11/2014 20:46

hxxp://www.stockmarketwire.com/article/4918413/FLASH-Berenberg-starts-buy-on-Pendragon-target-40p.html

A couple of weeks old, but worth noting new coverage with 40p target.

[battlebus2] 18/11/2014 16:01

Could we have another positive day??

[salpara111] 14/11/2014 13:29

No different to the housebuilders, the market it pricing in a drop off in activity in both sectors in 2015 and as such the share price of both groups have been marking time for the last 18 months.
The divi is not overly generous either.

[fozzie] 14/11/2014 11:06

I am glad Mr Finn is so happy with his momentous year. The share price is down 15% in the calender year. Considering the lack of share price movement given the burgeoning sales of new and used cars over the last few years any sales dip on weakness is going to take the share price down pretty smartly imo.

[mortimer7] 14/11/2014 10:44

Motor Trader 2014 Top 200:-
"Pendragon retained its position as the largest dealer group with increased sales of £3.85bn. It accounted for 7.4% of the total MT Top 200 combined turnover of £52bn.
Pendragon chief executive Trevor Finn said: “2014 is certainly shaping up to be a momentous year as the accolades keep coming and we also celebrate our 25 year anniversary as a publicly listed company.
“As always, it’s a great honour to come first in Motor Trader’s Top 200 list. Successes like this don’t just happen, it’s down to the hard work and dedication of a talented team that, as a business, we continue to grow and lead the market and that is what we’re most proud of,” he said."

[jeffian] 13/11/2014 13:36

Well it certainly struggles to get out of the band around 30p.

[felix99] 13/11/2014 13:23

mkts been doing that for 12 months and the gravy train is still going .

Everyone leasing just means people have to keep going back all the time for servicing or to change the car when the lease is up. Lots more forced points of contact with dealers. If they are any good they should be able to keep flogging something to the punters each time.

[battlebus2] 13/11/2014 12:28

Giles Hargreaves mentioned at the recent Mello that the markets were already looking ahead to the leveling of car sales hence some price weakness. This may or not happen meantime i'm happy to hold mine.

[jeffian] 13/11/2014 12:25

Hmmm. This is getting boring!

[1nf3rn0] 06/11/2014 20:24

Britons have bought more than 2m new cars so far this year, following an unexpectedly sharp jump in sales in October.

A total of 2.14m new cars have been registered in 2014 so far, the first time the two million mark has been passed in the month of October since 2007, before the financial crisis took hold.

It followed unwavering demand for new cars last month as consumers took advantage of cheap financing deals. Sales were 14.2% higher in October than a year earlier, at 179,714 vehicles, extending the longest-ever run of growth to 32 consecutive months, according to the Society of Motor Manufacturers and Traders (SMMT).

Sales of diesel and petrol cars were up but alternatively fuelled vehicles saw the biggest increase, up 59% in October.

Mike Hawes, chief executive at the SMMT, said: “The October new car market outperformed expectations, with registrations showing the strongest growth in a month since March’s 18% rise. With economic confidence still rising, customers continue to benefit from attractive financial packages on exciting new models.

“We still expect the overall market to level off as we head towards 2015, but the exception to that rule will be alternatively-fuelled vehicles, demand for which will continue to accelerate.”

The Ford Fiesta, Ford Focus, and Vauxhall Corsa were the top three bestselling models in October and the year so far.

John Leech, KPMG’s UK head of automotive, said: “This was an unexpected leap in UK car sales, as most in the industry expected the market to plateau. These latest figures put the UK on course to smash the 2.5m mark by the end of the year.

“As payment protection insurance payments (PPI) to consumers are tailing off, it is rising consumer confidence taking advantage of cheap car loans that is driving the market. Consumer confidence is still well below pre-recession levels so it may be that the market continues to power ahead this year before plateauing out in 2015.”

In August, the SMMT revised up its 2014 forecast for new car sales for the second time this year. It now expects sales to jump 8.1% over the year as a whole to 2.45m, underpinned by cheap finance deals and a better-than-expected economic backdrop, with unemployment falling faster and consumer confidence at higher levels.

[joe say] 06/11/2014 14:46

Ditto Nigel - one only has to look at the last statement to see the potential under valuation with both improving margins and improved debt control, not to mention increased web traffic etc

[nigelmoat] 06/11/2014 13:45

Am a long term holder here and added today. For reasons outlined by Berenberg (and others) feel this stock is now seriously under valued and when the market wakes up to that fact would hope for a significant re rating. The whole sector has generally been out of favour but interesting to note that several brokers have recently initiated buy recommendations on other Motor Traders with share price targets well ahead of existing levels.

[mortimer7] 06/11/2014 11:28

Berenberg has a BUY rating on PDG. From Traders Own:-
"Pendragon is primarily a retailer of new and used vehicles in the UK but also offers secondary contract hiring and aftersales services. The company operates approximately 214 dealerships across the UK and represents 26 global brands. Despite a recent profit upgrade, Pendragon’s share price has seen little reaction and consequently still trades on 9.7x 2015E P/E. We believe investors still remain anxious given operational challenges Pendragon faced during the recession. However, we argue that with 80% less debt than in 2008 and a shift in business mix toward more stable revenue streams, we believe the current valuation does not reflect the de-risked business model. We initiate with a Buy rating and a price target of 40p, representing 29% upside to the current share price"

[flyfisher] 31/10/2014 12:10

broker comment.

[mortimer7] 31/10/2014 10:57

Let's not forget that 18 months ago the share price was around 22p, so todays levels are not a bad progression.
PDG have secured financing, are increasing market share and, as the largest UK Motor Dealer, will naturally benefit from the increased vehicle car parc resulting from the new car market increases in the last three years.
I appreciate there is cause for frustration with the lack of share price uplift since mid year, but I am happy to hold.

[mortimer7] 31/10/2014 10:50

I liked this point in particular in the strategic outlook of todays RNS, specifically the quote "will pay them more than 'webuyanycar.com'"

We launched 'Sell Your Car' in the quarter with 29 retail points. The consumer can sell their car direct to Evanshalshaw.com, who will pay them more than 'webuyanycar.com'. We are establishing national coverage in quarter four with a further roll-out of 10 retail points

[jeffian] 31/10/2014 10:23

I share your frustration, fozzie, though I think you're harsh about the IMS. For some reason the market just doesn't seem to 'like' this company.

[fozzie] 31/10/2014 10:17

I like PDG but am at a loss as to why the share price fails to react to good results and to an ahead statement today.

[felix99] 31/10/2014 10:16

well I think sector should do ok for a bit LOOK is a good horse if you don't like PDG

[fozzie] 31/10/2014 09:50

Well i have just about had enough here. Very poorly written statement imv, hard to read, neither positive nor negative in tone despite good results. Increasing profit and margins but no sales data? Terrible share price performance in the last year despite a succession of positive results. An ahead statement today and what share price reaction? Much grinding of teeth.

[nigelmoat] 31/10/2014 07:15

As expected good IMS. Will it stir the share price into action? Looking like a general market good day ahead so might help.

[joe say] 31/10/2014 07:12

An excellent performance and look at those operating profit trends

[jaf111] 31/10/2014 07:09

Yes indeed....another positive IMS....

"Given the continued strong performance in quarter three, we will be ahead of expectations for the full year."

[nigelmoat] 29/10/2014 20:23

Yes should see an IMS before the end of week and It will be good. Unlikely however to lift the share price other than by a token amount as this sector still remains out of market favour. Needs some takeover or buy out activity in motor trade area to re kindle some interest.