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.

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.

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.