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.

jfletendre I will post on the selected threads that I think personally have too much hype on them, correct about JCR, correct about RAB so far.

You against negative views?

Also chaeck Ofex traded Britannia on ADVFN about 700 posts on this little Ofex stock from hawick & G/f as a team, hey but I don't complain, my stocks will stand up to negative posts as Britannia has, in fact up 355% since I bought.



Back to JCR which without any further diversions I hope we can talk about Puggugly I think it's 800,000 @ 1p from memory, if you check the RNS news it is in one of the RNS articles, when management do those sort of things well below the current price at the time, I don't trust them, very selfish & not fair to investors, so far I have been correct to have my doubts.

The shares were about 4p at the acquisition and puggers this is what you want:
In addition, Barry Whittles has today been granted options over 609,669 Ordinary
Shares, and Chris Elton has today been granted options over 203,223 Ordinary
Shares, in each case at an exercise price of 1p per share.
On top of the 12.525 million shares that would make c13,339,000. Given that they bought far more shares subsequently at 8p and 12p I hardly think it damages their credibility and they are running the business superbly. JCR up 100% sincew i first bought when Third Eye started his campaign, so how that makes him right I leave for you to work out, lol!!!

As I believe he was "in the business" (car mechanic?) i will ask him if he ever worked for Dixon's motors? perhaps that would help to explain a lot!!

The eps was unaffected at the results. The market cap at 20p would be 2.68 million from 2.5 million. These are the only options and not going to make a big difference. Still great value ;)

Oh dear now even suggestions I worked for Dixons, boy you guys are desperate.


We are losing focus again I see, the point is these had suggested profits of 1.4m.

No one wanted to talk about the 5m borrowing and their market cap being much less.

In fact Nav value of 5m was claimed by hawick.



I'm just here to point out the truth, ie, they never had 5m NAV etc.


Also pointing out issuing 800,000+ options at 1p that has a current share price 400 or 500% above that is BAD FORM for investors & gives you an insight as to how the directors may be rewarded in the future...a very relevant point I think.


& no never worked for Dixons, I was a director of an Independent HGV garage, Car garage & Bodyshop.

Thanks ThirdEye and hawick:- I think you both have made very fair points -
Potential dilution not as bad as I feared but tend to agree about the 1p - and also the level of debt with rising interest rates but as hawick points out the business appears to be being run well - apart from an accountant fiddling the books - BUT (imo) this should have been spotted earlier from cash flow discrepencies - (perhaps that was how he was found)and reflects poorly on management BUT it was found out. If price reduction forthcoming (say 1 million as suggested) then a sharp boost to assets and share price) but nothing is, from my experience, sure in Law apart from the COSTS.
Will have to do some more research.

Puggers, the fraudster was in the days before the Bikenet acquisition of the company therefore it'd be wrong to blame current management I think. And once it was located the company (imho) did all the right things and the report is pretty plain in pointing the finger. I would not be surprised to see an out of court settlement - hope so!
Good luck whatever you decide.

Fair constructive & sensible comment pugugly.


& one thing with their balance sheet JCR can't afford is costs.

Well someone voted with their feet & bailed out at a price well below the bid.

Moves and acts like an Ofex stock this one, often moves up or down on 1 sale or purchase.

Moves and acts like an Ofex stock this one.

Is that a criticism, given you are an ofex fanatic, Third Eye?

Just an observation hawick, down 0.75p on 3000 traded today, unless any larger delayed trades get reported which is possible.

Thanks for pointing that out, yes, overdone and very cheap now as your post draws attention to.

In your opinion cheap. In my opinion very very risky, huge gearing, possible lengthy legal battle which would produce ongoing costs. Margins low, Interest rates increasing. Further tightening of legislation as to pollution re: Bodyshops...My opinion would be Sell on strong doubts as to weather borrowings can be met.

No problems on borrowing front as long as the company stays cash flow positive which indeed it is and also maintains steady growth which it as.

No legal battle just a settling of the claim by both sides insurers.

cheers GF. Certainly worth a punt at this price even if it were only to be short term, remember a positive on the claim will almost certainly send the shares northwards.

Interest for both long and short term investors.

Cash flow positive up to the last accounts, but when will the new banking arrangement fees & charges hit for them not keeping within their banking agreements?

Edited post.

I will ask for your post to be withdrawn/edited as most is untrue.

goldfinger,

Please do not make personal attacks on these bulletin boards.

J.

post 181, COPIED from thirdeyes post....................


"& no never worked for Dixons, I was a director of an Independent HGV garage, Car garage & Bodyshop".ENDS.

ATullet MONEY AM, I happen to think I was right in pointing out the truth about the above poster.

I was only trying to point out that the above poster had used his employment in the motor industry as a bear weapon in trying to get bulls to sell the stock.

If my post is wiped then surely his should be.

cheers GF.

The quote above (I was a director of an Independent HGV garage, Car garage & Bodyshop".) is true, your previous post was not & therefore was deleted.

Why does it say then and penned from your own hand and taken from your personal profile on your own syndicate site (yes Ive saved it before you shut the site down) that you were a panel beater/bodyshop worker, before moving onto inspector for the HGV garage??????????????????????????????????????????????????????????????.

I agree you were asked back after retirement for a short period as a director AS YOUR ARTICLE SAYS, but to mislead the board in this way making out that you have run a garage business all your working life is misleading. As my post was removed so should your posts as you are trying to use them in your attack on JCR the company.

I also note that and are you denying it?, that you learnt about business from reading three books from the London school of business, not from the practical running of a business, and theres one mighty difference.

cheers GF.

Goldfinger: Come on, you had a warning from Jon Tullett earlier. These Bulletins Boards are about companies and their shares, not about posters and their personal details.

Take this as a final warning.