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.

A very reasoned opinion bones, much respect for your views and civil presentation.

Only time will tell.

cheers GF.

Thanks Bones, can always count on you for a civil response.

i think all car bodyshops taking hit by good weather.
my neighbour he is a sparky car mechanic and he stays at home
recently. jcr good firm, good accounts and will have good
and bad year. debt finance no problem, bank will look after
them.

Thanks for the list gf The good news about this list is that they have all the best players and two of them are very hard to get.If you compared this list to a fishing net the holes would be very small so hardly any fish would escape from your net in your area. So if you go for a swim in their area and have an accident you will end up in their net.On finance they would have got a flexible type of a aggreement because of the nature of the business.The business structure and set up they do have gaurantees their growth because smaller operators are being sqeezed out under ever tightening enviromental, health and safty legislation and the increasing need to provide higher standards.Which means investment in better training and high tech equipment They would have no trouble servicing their debts even if interest rates do go up further, besides we will never see double digit interest rates ever again so whats the worry.

Well its very nice to have reasoned opinions. God help us if we were ever to go down the adfvn route.

cheers Gf.

After buying the shares recently i frequent this page to see whats being said.
why all the talk today?

I dont know what other people think but i do find ADFVN a very hostile place to visit.I find a lot of the postings sometimes crude and totally irreverlent and any one new trying to give an apinion is made to feel very unwelcome.

Spot on MP. Homebase a very unwelcome visitor came on this site earlier on, one well known on other sites for his de-ramping and spoiling tactics. I have squelched him and reported him to management. Please take a look at the earlier thread. Word of warning on this guy, please dont get involved.

cheers GF.

Why have you reported him to the management? I don't see anything nasty in his post.

Kayak, no you wont at the beginning, he always starts off this way ( comes the innocent etc ), but further down the line the devious man starts his spoiling tactics. People new to investing get sucked in. Best to squelch him out.

cheers GF.

Kayak, GF appears to be a little paranoid at the moment as I can see nothing nasty either.

With regard to JCR, I made a few pounds in early Sept with this one, only to lose it again by not getting out quickly enough. Greed. I would not want it now as I feel there is better to be had elsewhere before Christmas.

Brought to the top for Bears and bulls to debate.

cheers gf.

Given that I see these shares are now at 13.5p, and have fallen from 40p on no change of stance from the company, any setback (and there is no reason to believe there will be one as winter is their busy time anyway) is already in the privce. Bargain hunters, step forward!

The fall back as taken place on very light volume aswell. Think you could be right that this one is looking very cheap.

gf.

Bought just a few today at 13.75

There were no reported trades when mine went through, and it didn't appear until 90+ minutes after I traded, and shows up as a sell.

All very tempting I have to admit, but.....I feel it will drift until we have some update from the management about the impact of the "good" weather. After all, management started it off by commenting about it! If the market makers stick it down below 10p, I will certainly be in for some!

I think the full year results are due out before Christmas, around 16th, remember this is only a three month second "half" due to new financial year end. So it will reflect Aug and Sept, when things were quieter. Of far more interest than the number will be the outlook statement. Unless market as whole turns down sharply can't see 10p.

GF - "The fall back as taken place on very light volume aswell. Think you could be right that this one is looking very cheap"

Should I be buying at these levels? Are you investing more Oliver? Actually the volume was above average when they fell - does this mean anything?

Bones, to sell them at/under 10p they have to find some before......
I believe that most of those who are still in now are long holder

Yesterday the MM tried a treeshake but very little result, My brokers
left me a message (I was in a meeting most of the day) if I wanted to sell 10K
at 13p when the bid was at 11p (that is why I think there isnt many available) see the post 65 that say everything....
and strange enough who realised them? A friend of mine because wanted a spare cash(so he told me in the evening)
otherwise.

Any way you have done well with JCR..
Good luck to you again

Ciao

Ciao, thanks. I'd also be surprised to see a drop down to those levels, but with 2 MMs, anything is possible!

Hawick, the year end is December, and is a 15-months period. Check the company's statements. Results will be in March or thereabouts.