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.

Up to day.

gf.

JCR has done it's thing & tested the 17.75 support.
It's now hovering between that & the resistance line (It used to be a support line, crazy stuff this TA ;-), an upward trending line moving up towards 22p. So many got burned, (see the volume on 7 th October) that, undervalued or not, it may take some time to retake those heights!

It would be incorrect to say the indicators look positive but they certainly don't look as negative as before & IMO look "hopeful"!

Good luck

Fly by Night

Red

Is the JCR catchment area getting any nice horrid weather yet?

Does anyone know which insurance companies JCR is hoping to sign to.They may have approvals from varies companies,but there are a couple that make a real difference.(what ever the weather)I am awaiting on announcements before taking a dip in again.

Sadly this one has been ramped to 40p & it back where it should be.

The debt & interest rate rises have been overlooked.

How much do they owe, isn't it about 8.5m, add the interest rate rises momentum & that's why it's going nowhere in my opinion.


It would be very cheap if it didn't have the high gearing which could cripple it. A p/e isn't to be looked at on it's own ....always check the debt.

MP this is the list and they are signing new ones by the day. Just a word about the previous poster, hes a well known de-ramper/idiot/trouble maker, known on most of the boards. Best to just ignore him.


JCR insurance approvals:

- AA Accident Management
- Admiral
- AXA
- Bell
- Broker Direct
- Budget
- Carole Nash
- CGNU
- Churchill
- CIS
- Diamond
- Direct Line
- Equity Red Star
- Fortis
- Green Flag
- Hastings Direct
- Leasing Group
- MMA Insurance
- Motability
- MVRA
- NIG
- Pearl
- Privilege
- Provident
- Prudential
- Royal Sun Alliance
- Saga/Groupama
- Tesco
- VMS Fleet Management
- Zurich

Just thought I'd save you all the bother of digging it out of their website.

Pretty impressive, I think.

Cheers GF.

You didn't answer the question goldfinger, surely your case will strengthen if you can tell us it will no effect?

A very impressive list of insurance co's who provide JCR with their work and you can see why. Cheers gf

Although JCR is a new company they are not novices at their business but advanced due to some very experienced management and a highly qualified & motivated staff that has rapidly earned its industry and press accreditations to deliver an award winning quality service and customer satisfaction. The interesting thing also is they are accredited with car manufacturers who provide training & support for JCR's staff to rebuild / repair / refurbish any of their range of cars. A great assurance for the insurers.

Certainly are legins, a very impressive list and being added to.

cheers GF.

ps, ThirdEye Squelched, a well known de-ramper and trouble maker on all sites. I suggest you also squelch him. Also reported to board management.

I'll ask my fair question again.


What effect will interest rate rises have on JCR's huge debt?



Let's face it, everyone is called nasty names when you get a question you don't want to hear.

I do not think the debt is a threat so long as profit expectations are met over the four-year period during which the main 3m "premium" loan is to be repaid from cash flows, as stated by management/prospectus. However, the interims included a warning that business was quieter than forecast in July/August due to the exceptionally hot weather. Since then we have had an exceptionally warm/dry September, October and half of November with barely a day or two of bad weather. That equates to far less accidents on the road. I would be amazed if the full-year results do not reflect a continuing quiet period below expectations.

That is not to say the company is not fundamentally cheap on a four-year view. Nonetheless, I do not see this share going anywhere for a good while, at least not until the company shows it is meeting its own profit and cash flow expectations. Normally, I would buy at 17p but I fear a profit warning in early 2004 which keeps me away for now.

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.