This company is certainly catching the eye of Analysts and Tipsters. I have kindly borrowed this summing up of the company from an online associate and agree with his findings. This really is an undervalued company.

Car Clinic (JCR traded on AIM) – Market Cap 1.32million

Business

Company owns 12 accident centres. Was formerly a division of the Dixon Motor Group.

Opportunity

Profit of circa 700,000 at interim stage – Is a growing business, so every confidence that this performance will be matched in second half, generating 1.4million in cash profits for the group. As others have pointed out this would essentially put company on PE of 1.

Company does have debts, which will require servicing. Currently 2.25million, though repayment has been more than fairly structured and allows significant amounts of cash to be retained by JCR. I assume these monies will be used for bolt on acquisitions and possibly early repayment of debt.

From my various conversations with an existing large shareholder, and to a certain extent recent statements from the company, the debt will be repaid at the rate of 400k per annum. From my calculations, and conversations with various sources, net profits this year should be more than 600,000. Compare this to the measly 1.32million market cap. As I indicated above, this is ludicrously cheap. ( NB This figure takes into account costs of acquisition, associated legal fees, initial banking fees and initial repayments. Remember, the repayments begin in earnest, next year.)

Going forward however, annual profits of more than 1.4million can be expected from the group. I expect the company to beat this comfortably next year and to continue growing at pace. So in effect, I believe Just Care Clinic can deliver annual net profits of more than 1million – Remember this is net profit. (i.e. after repayment of debt)

Directors Buying

And why shouldn’t they? They obviously see the great potential here. The Finance Director, Chris Elton was formerly FD at Dixon Motors, but moved over to take part in the action.

The future

I expect the company will be more focussed on bringing in further contracts with insurance companies. When Just Car Clinic was part of the Dixon Motor Group, whilst profitability was obviously important, as the business wasn’t a core component of the larger group bringing in new contracts was likely seen as a problem rather than a chance to deliver greater profits. I suspect the management team, motivated by significant shareholdings, will be keen to bring in as much ‘big’ insurance business as they can. I expect the company to make an announcement to this regard within the next few months or so. This is based on nothing other than gut, experience and feedback from various sources involved in the industry.

Take a closer Look

Equitygrowth.net wrote a brief piece on JCR in its 7th February newsletter. Shares Magazine has also provided positive coverage of late. I do agree that the figures do appear too good to be true, that is why I encourage investors to do their own research. This stock is undervalued – FACT. I am confident these shares will do well in the coming weeks as more investors recognise the potential, whilst going forward this is excellent material in my opinion. This isn’t hype, this is all fact which can be confirmed with just a little time and effort. Shares are currently 10.5p offered. I cannot emphasise enough - JCR is one to have a look at.

Please DYOR.

When are the ONE penny options due to be excersised g/f?


Very poor show that options should be issued at 1p.

If they had issued at a fair price of 6 or 7p, then they wouldn't have given themselves cash on a plate & st the same time showed they cared about investors, by not diluting their shareholdings.

City Conf have tipped JCR before so I guess they have to stick with it, plus it has to fill space EVERY month.

Good news from City Confidential, they have an excellent track record and I am sure their followers will see this as a big green light, and no doubt others should take the hint as well. :)

I hold and looking to add on any weakness. Have been involved with these since 9p over a year ago and still positive on te shares.

LOL every one concentrating on City Conf.

OPTIONS @ 1p

MASSIVE DEBT in relation to NAV


INTEREST RATES UP THREE TIMES on that very debt


EUROPEAN LEGISLATION getting tougher for bodyshops.


INSURANCE COMPANIES clamping down on margins, companies like Aquillo formed to help.



Last margins I read were just over 3% at the interims.

I agree Hawick excelent that a pro and very good tip sheet as backed this one. Just spiffing.

cheers GF.

-2p or more than 10% as investors maybe realise the risks, perhaps too much concentration on positives with no balance of negatives?

Third Eye - I'd like to ask you a very blunt question that I would appreciate an honest answer to - why the personal agenda against GF? I hold a few stocks that have threads running which I like to keep abreast of. You describe yourself as someone who likes seasoned debate but whenever I read your name, 100% of your posts are there in a contrardictory response to something GF has posted and it's BORING. You ALWAYS disagree and that is far beyond coincidence.
Give it a rest.

jfletendre, please stick to the merits or negative comment on JCR.

It's in the firing line due to it's huge debt position, if I wish to be negative or positive I will....Other than that filter if you have no wish to read anyof my comments.

Teribble day i feel like jumping of this balconey, jcr what a dog.

Good point JFT (anna)mind the management advise me that certain threads are being monitored very closely on the board and I think you know the ones I mean.

Theres a big difference between debate ( the bull and bear case) and out and out bulletin board bullying and disruption.

I hope you post again on this thread but can see how annoyed you are.

cheers GF.

Brand new technology piloted at Leeds branch
An innovative new system that allows insurers, bodyshops and customers to monitor the repair status of their vehicles 24 hours a day and seven days a week is being piloted at Just Car Clinic’s Leeds branch.

ClaimWatch is a web-based tracking package that aims to improve efficiency and push customer care standards even higher. Just Car Clinic is one of the first collision repair companies in the country to use the new system and hopes to roll it out to all 13 of its branches across the Yorkshire, Lincolnshire and Nottinghamshire region in the near future.

The ClaimWatch package is now fully integrated with the Brown Brothers’ ‘Bodyshop Direct’ software used by Just Car Clinic. It features a range of exciting services, including a facility that enables jobs and courtesy cars to be pre-booked, a customer contact diary and a ‘one-click’ option to update the repair status of a vehicle. This means that members of the public and insurance companies will be able to check the status of a repair on-line, following the vehicle through the entire process step by step.

Ian Fryatt of Bodyshop Direct said: “We are delighted that, as a Bodyshop Direct customer, Just Car Clinic has access to ClaimWatch. This link undoubtedly adds value to the Bodyshop Direct package that they already operate at Just Car Clinic by providing users with a proven online communication tool that gives efficiency and time-saving benefits.”

Robert Hirst, General Manager of the Leeds Just Car Clinic, said: “I am delighted that we are piloting this exciting new piece of technology here at Leeds and am confident that it will bring great benefits to the customer, as well as proving to be a simple, but efficient, tool for the team here to use.

“Obviously, we will be monitoring the pilot phase, which starts this month, closely and feeding back to colleagues at other branches on the benefits before ClaimWatch is rolled out across all 13 of our collision repair centres.”

Robert added: “Good customer care is at the very core of the service that we aim to deliver and this development will bring real benefits that can be enjoyed by the customer.”


cheers Gf.

Do we think companies like Aquillo that assist insurance companies to make sure they get a good deal, will put extra pressure on JCR margins, they seem to be popping up everywhere.

I remember when I was in the trade, insurance companies were getting away with just a 10% margin on parts & getting much tighter on labour, this seems to be a big factor now, the more lucrative days have gone.


Also European legislation on bodyshops & air pollution was also getting tougher & requiring much more investment.....yet another reason I wouldn't touch this stock.

However the guys with options to buy shares at 1p should do ok.

Nice move upwards today.

Personnaly I think options are an excelent incentive tool for management and employees. In this case and I dont think Thirdeye read the RNS on the reversal they were given to the management as part of the package on the takeover of bikenet by Dixons. Nothing wrong with an incentives for companys who earn them, its the fat cats who dont earn them that should be attacked.

Obviously in thirdeyes world we would be back to OLD Labour and Unions running the show, strikes here there and everywhere.

JCR have a string of insurance companies they work for, no problems to report there. No problem on margins either as the company going forward are using the latest technology to bring the cost base down.

As for the loan repayments no problems at all, JCR have budgeted for much higher interest rates in their internal analysis, as have their broker. Cash flow positive, no problems at all.

Might prove fruitfull for Thirdeye to get in touch with the CEO just to put is mind at rest ( I have), yes thirdeye give him a ring or better still visit him, you can usually find him at the Hull clinic not far from where you live in Burton.

cheers GF.

Options should be issued at a fair price not only to management but the people who invest in the company gf. Issuing hundreds of thousands at 1p, doesn't do the investors any favours, it's not balanced, no one minds a small discount, but 1p is an "I'm going to be alright Jack" type attitude. Gives clues to the moral credibility of the management at least to my mind.

Sorry thirdeye you havent got your facts right, go back to the RNS on when the actual reversal took place. I suppose in your world aswell you would be taking a hit at the miserly salaries the management get at this company, those options were given instead of high inflated salaries, an incentive to get the business going and growing, none of your reds under the bed Union and political tactics which you obviously agree with.

Caps on management salaries does no company or its share holders anygood.

Come into the real world of capitalism thirdeye, its no good being on the fringes as a union activist. In your type of world there is nil growth and its been proved.

cheers GF

What fraction of the price at the time were the options issued at g/f?

Nothing wrong with capitalism, but there's plenty wrong with fleecing (in my opinion) shareholders by the issue of options at a deep discount to market price , there is a difference.

Is this the quiet half they are now in gf?



Btw do you think you get over excited with your positive comments gf? I mean 1.4m you forecast in your original post, even taking away the fiddling of the books, they wouldn't have reached anywhere near that would they?

What went wrong?

Think weve now found your secret agenda thirdeye, 'a red under the bed' a COMMUNIST.

I have never been against options and never will be. They are an incentive, an incentive for the brightest in our society and business to reap rewards, only those who are not bright enough should fear them.

In thirdeyes society we would be back to the 3 day week, restrictive practices, a much hiked minimum low wage, UNEMPLOYMENT no growth INFLATION and high interest rates.

By all means you live in the past but I will gladly move on thankyou.

cheers GF.

No use trying to attack me, to divert away from my questions lets debate JCR

So do you know the answer?

What fraction of the price at the time were the options issued at g/f?

Making demands again I see, make no wonder the poster Invisage had a go at you and said you should do it yourself.

Seems thirdeye is indeed a lefty, too idle to even check out a fact himself.

cheers GF. ps, the more options the better , I just love incentives and not the outdated thirdeye RESTRICTIONS.

Obviously you don't know the answer.

Options = dilution of the shareholders stake & profits pro-rata.


More options the better eh?



Well if JCR had about 15m of them @ 1p (which is the price we have been discussing) then for 150,000 in the balance sheet, they would cut eps by more than half, so 1p eps would become less than 0.5p eps......so how do you think more options the better gf?

Gives Incentive Thirdeye to outperform, the companys profits rise and rise and so do the earnings per share.

Each option (in monetary terms) is diluted as the company grows. The ordinary shareholders are happy the option holders are happy, Plain straight forward stuff. Incentives lead to outperformance. Restrictive practices lead to nil growth and misery, perhaps you like that.

cheers Gf.