RUMOURS RIFE OF SECTOR CONSOLIDATION.AM VERYVERYVERYVERY LONG!!!!!!!!!!

DC

Been trying to find some news on this one - it is one I have a holding in. There appears to be no news come out - the only two factors that may be influencing it are:

1) The latest interest rate meeting was more dovish which is positive for the sector though only Look appears to have had the rises

2) From a chart perspective there is a very nice cup and handle formation which could be an indicator to a strong breakout.

From a fundamental perspective they have a very strong balance sheet and trade on a discount to the rest of the sector. Im not sure the HMCE refund was ever factored into the share price either so their is plenty of potential - certainly long term.

Having risen 10% in 3 days i would at least expect to have found a rumour if not hard news. Even still, based on the chart and fundamentals could be a good solid growth stock next year - lets hope so

I bought in recently on a purely fundamental-based decision - good growth over five years, low P/E, low PEG, strong asset position. Nice to see the market agreeing with me so soon :-)

DC

Well done, I have been waiting a while for the market to realise i was right! :-)

I like to think my timing is superb. Actually, it's simply that I read 'The Zulu Principle' week-before-last and went hunting for value shares which matched the criteria. :-)

DC

DC

A good book - i read several years ago and could probably do with re-reading again. This to me has the profile of the classic long term growth share. Also, as it is seen as a dull share you see very little hot money in the share so it shouldnt be too volatile, except when news is released.

What else has the zulu principle thrown up to you? - RTD may be worth a look on the PE/PEG though the growth is less than 5 yrs.

Been watching this myself for a while. Just approaching its all time high at 330. Suspect it may experience some resistance there before attempting a break, after which the road ahead is clear. I'll wait till it breaks decisively.

Fundamentalist - the other shares I picked from my scan are Country and Metropolitan (CRY), Inventive Leisure (IVL) and Tolent (TLT). CRY and TLT are not ideal as they are in the construction and building sector but they still look like great value in the long term.

DC

Thanks for that

You tend to find any screener you run based on PEs will always bring up a high proportion of construction or housebuilding companies due to the low ratings the sector have - will take a quick look at IVL

Up another 3.5% this am on thin volume - the chart is starting to look good for a breakout

Indeed. If it holds this today it will close at an all time high.

Lookers says Q3 trading falls 20 pct
AFX


LONDON, Oct 30 (Reuters) - British car dealer Lookers said on Thursday third-quarter trading had fallen off by around 20 percent due to the turbulent macroeconomic environment, and the outlook for the industry was poor.

The motor retail group said trading through September continued to be tough, with the Society of Motor Manufacturers & Traders reporting a downturn of 21 percent in the national new car market, resulting in a fall of 19 percent in the third quarter.

'Against this background, Lookers experienced a similar decline (19-21 percent) over the period in new car sales ... Trading conditions are currently very difficult, and the outlook for the industry for the remainder of the year remains challenging,' Chief Executive Ken Surgenor said in a statement.

However, the group said it was still generating cash and net debt at the end of September was in line with its expectations. The firm added that it had adequate banking facilities in place for the medium term.

The after-sales markets, including parts distribution and servicing, have continued to trade strongly throughout the third quarter, Lookers said.

The company said it hoped to cut costs further by redirecting volume back to its main hubs, reviewing franchises where facilities are larger than needed and exiting underperforming businesses.

I'm seriously looking at this today.

Their cars may not be worth much but their sites might be valuable.

Ah its moving up strongly now.

Agree they have prominent sites in all big towns got to worth something.

Hi Mitzy,

long time no see.

Well ive just realised who you are across the road on the CR thread. Hope your keeping well.

Are these sites lookers have, freehold or leasehold or a combination?.

Morning gf


Yes I posted on CR's thread when the share touched 19p last week and now its recovered to 33p so a good return....I've no idea as to what they own I imagine a combination of leasehold/freehold ..

Also keen on RAY..cheers.

Directors have bought 1% according to RNS.

Hi gf..

RAY has doubled today amazing.

http://www.fleetnews.co.uk/news/story/BUDGET-2009-Scrappage-scheme-includes-vans/49921