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.

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.

OK Bones. Sure I read something on the interim statement, thought I saw it on FTSE calendar too, but must have recorded it wrong. Fair enough, thanks.
A delayed trade of 300,000 this morning. Hope that has cleared what I have long suspected to be an overhang. Guess we will find out next week if price starts to recover.

Just heard that Just Car Clinics as been tipped by the Penny Share Focus in its 2004 yearly portfolio. Good news indeed. Rumours abound that the companys trading is now back on track after three dreadfull weeks of weather in the Yorkshire area.

cheers GF.

Happy new year GF! And no, I didn't get plastered

Great news on JCR as this was one of my early mistakes in that I bought too much - started buying at 18p but carried on adding and ended up averaging 31.5p - learning all the time
Regards
Anna

Nice to see you on the board anna. Fingers crosses JCR will move up on higher from here. Good look with your investments for the rest of the new year.
Loads of money.

cheers GF.

Thanks and same to you (altho I think you need luck less than me!)

question for you guyz. Any off you guyz have a percenage holding in "JCR" ? (1% being 112,560 shares)

Yup Mitch 1967 I do.

cheers GF.

same here gold finger

just something i wondered a do with a few companies on here.

Was just a power angle that went through my mind together on some compaies we must combined have some power

Certainly taken off today up over 20%.

cheers GF.

Hi GF
Feel grateful that JCR is looking good - another site thread says that JCR is "share of the year 2004" in City Confidential :-)
Regards
Anna

this is a big jump on little volume.I wonder if there is news in the pipline and MM are after stock or are just playing games.I know the weather is bad and buisness will be good but it will still take a bit more time to catch up for the lost trade in the summer.
Anyone know anything not out yet?. Graeme.

PS Anyone know who/what/reputation of "City Confidential" as never heard of it?

http://www.cityconfidential.co.uk/

Caveat emptor with tipsheets. Who knows whether some connected people have been buying in the last few days ready to sell on the tip mark-up. JCR is an ideal candidate.

City Confidential has an absolutely superb track record, having picked unfancied stocks like Character way down low. JCR also in Penny Share Guide#s 2004 portfolio. Despite being a micro cap really getting noticed now. JCR is a really solid little business that keeps delivering IMHO.

hawick - I agree that JCR is a solid business (albeit there is the open question about business volumes during the unusually dry and warm Aug - Nov period (see interim director comments). My point was about tipsheet effects on illiquid stocks. Also, in the last year, it would have been difficult not to have tipped a winner!

Anna cheers, city confidential has been around for a long time and as a good reputation. Please remember JCR is mainly based in the Yorkshire area, and the weather up here as been terrible over the last month plenty of ice, fog, sleet rain etc.

There have been rumours doing the rounds that JCR are now back on track after two quite months in the summer and perhaps these tip sheets know of that.

Anyway its a nice return to form for the share and Ive added yet more this morning.

cheers Gf.

Hi all even here (Italy) there are car crashes with nice weather (except in the mountains snow etc..)...... bad drivers are in any weather!!!!.....

Good managements,good staff training scheem, excellent service and a good PR with Insurances (as someone said).... all those are as good assets as anything else......

Just a thought.....

Ciao

They should open up a branch in Paris, I've never seen so many bashed-up cars - Winter or Summer!

Some good posts here.

I am 52 years young, been investing for over 30 years and made good and bad decisions over the years, but usually outperform the mnarkets, its easier when you don't have company rules, regulations and customers/shareholders to deal with! I recall this stock went up to 39p just before the latest results. Could easily top 35p plus again, although interest rates may have an adverse short term affect. My personal view is this is a good medium long term investment that should outprtfom all indices. it is a no brainer to hold on for further growth imho. Good luck current holders!