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.

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.

And just to show that its not just the management who have incentives at JCR here are the benefits there excelent staff get......................

Well, besides the advantage of joining a highly successful, growing company that will support your career through training and local chances of promotion. We also offer:


Access to manufacturer and in-house training programs that are designed to make you the best what you do.
A culture based on recognising individual talents.
A fun and lively working environment.
Highly competitive basic salary.
Competitive Bonus scheme.
Paid annual leave.
A rigorous policy of internal promotion.
Employee share-save scheme.
Non-contributory private pension.
Social Clubs for each site.
Company Suggestion Scheme - benefits for both company and individuals/teams.
Up to date equipment/tools.
Corporate image in uniforms and overalls.
And because other large companies recognise opportunities at Just Car Clinics they are also prepared to offer their products to our employees at discounted prices. ENDS.

EXCELENT.

cheers GF.

If it gives incentive on the above example profits would have to more than double to stand still to reward the share option takers, however the investors would see no reward....therefore your statement more options the better makes no sense.


However if they were issued at market price at the time, then that's a different matter.....of course the one's we are talking about were not they were issued at just 1p heavily skewed in favour of the option holder at the expense of the investor.

Laughable thirdeye, the options only account for 6% of the ordinary share capital of the company, miniscule if you then check it out against your flagship Britannia, were warrants and the issuing of new shares nearlly every quarter dilute the ordinary share capital by up to 18% yes 18%. Make no wonder the company is on a top heavy P/E of 33.5 based on the weighted average number of ordinary shares and warrants in issue.

Talk about double standards.

As per usual de -ramping of the poorest order.

cheers GF.

Erm your comment was more options the better, in my example it PROVES clearly not.


I thought this was a JCR thread, but never mind Britannia will bring in 500,000 which will then double over three years as it's lent out @ 31%.


The warrants were also issued at float price, not a heavy discount, far more credible management, & all those in at 9 or 10p like myself were & are happy about them, it seems others are too as the share price has gone up from the 8p I started buying at to 41p now, with results soon, I expect the price to get well beyond 41p.


As for laughing, it seems I have always been saying Britannia & Cape are far better bets for heavily borrowed stocks, Cape up from 23p to 90p & Britannia up from 8p to 41p, So I guess that means I am laughing.



So now that's out the way, perhaps we can stick to JCR?




A few questions


1) After your 1.4m forecast 18 months ago what is yournew forecast for profits this year?


2) Have you found out what price JCR was when it issued the heavily discounted options yet?



3) What sort of margins do you think JCR can maintain?



4) Is Winter the busiest period?



5) What effect do you think further interest rate rises will have on JCR?

Im very positive on JCR indeed. In fact if the claim is settled in their favour we will see a lovely spike up. Jcr can maintain margins with high grade technology cutting costs no problems, and the sales figure I see the company attaining is unchanged, especially in these days of higher interest rates were people hang onto the old banger much longer and bodge up whereas with lower interest rates they would replace. The management have also budgeted for higher interest rates on outstanding debt and we are cash flow positive. Everything is fine, yes F I N E.

As for your silly questions please go elsewhere. It seems that you dont like successful people, you hate to see others doing better than you , all the hallmarks of a communist.

The days of socialism are over accept it, capitalists rule the world.

cheers GF.

Ah I see anyone who had researched the company properly would be only to pleased to give a constructive reasoned bull case by answering my questions....clearly you feel you can't answer them.


Even if you did, how much credibilty should we put on it, considering your 1.4m forecast last year?



I guess we can all make our minds up, anyone can say "everything is fine"

thank-you for your effort though.

The options debate is at best marginal here and if that ( and exaggerated concerns as i will demonstrate here about interest rates) is the entire bear case as it appears to be then i am more than happy holding. A market cap of not much over 2 million could easily more than double if a million plus settlement is won. Even if it is not then profits and good cashflow should concentrate investors minds and the cash generation of 600,000was a bonus and there is an untouched banking facility of 2.5 million, which would be used to expand the number of car care centres i understand.

Put that all in the pot and you have a company that is deeply undervalued.

For a 2.5 million market cap company that all adds up to a potent attractive mix. In a company that size you can't have everything but this one comes pretty close! Worth buying imho.

Thirdeye, I wouldnt answer your silly questions even if you paid me. You just dont seem able to grasp the fundies behind business. Is Arfur Scargill a mate of yours?.

Hawick a well presented and factual posting comment.

cheers GF.

Hawick he was telling us the stock was on a p/e of 1 & would be 55p by Xmas 2003 elswhere when backing you up.

Looks like higher oil prices will put pressure on motorists & they will be chomping & searching around for the best deals, higher interest rates look certain & will again eat into JCR's profits or enhance their losses whichever it may be.

Yet another interest rate rise today, bad news for very highly geared company like JCR.

Yes JulieH over on Sharecrazy has pointed out exactly the same thing.

GF.

Pleased to hear it. Keeps investors balanced with positive & negative views.

4-5m borrowings & several interest rate rises, makes a difference.

Also will any costs from the recent books overstatement results in arrangement fee charges etc in the current half?

Third Eye was negative on this stock @9.75p (now about double) and has made several hundred (I do not exaggerate one iota, yes hundreds) of posts on advfn on JCR, (or more accurately on individuals much of the time, truth to tell) where he posts as Outsider, without EVER owning it. Worth checking out. ;)

Bit like his 'conduct' here on the RAB thread and several GF stock threads.

Judge him for yourself!

If JCR get the anticipated seven figure settlement from Dixons then the market cap of under 2.5 million is going to look very silly. Unused credit line of 2.5 million still available for expansion. Trading profitably.

La la oh Julie, if you love me truly, la la la!

Oops sorry, just singing away there.

Not looking as silly as the guy who forecast 1.4m profits (you were the author wern't you?) last year,they came in at little over one fourteenth of that and as YOU mention RAB not looking as silly as the guy who mentioned 1 quick time, in April I think.


Thinking of changing my username to hypestopper.


Any unused credit on top of 4-5m borrowings is a HUGE worry as rates continue to rise. Finance charges will make very interesting reading.


Never hold a low asset value stock with more than 100% gearing when rates are rising fast.

btw there are two guys who go round the internet promoting the same stocks & making very similar claims, (prospective p/e of 1 etc) don't you think it's good that a constructive reasoned case is made out to balance things out, investors then don't get burnt so much don't you think?