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

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

On a run up, keep your eyes on it.

i haven't seen a 'classic' breakaway gap followed by a 'halfway gap' for a long time.
i'm keeping my eyes on it gf. thanks for bringing it to my attention.
regards
jkd

Business Financial Newswire
"Motor retailer, Lookers confirms that it is trading ahead of budget and that it is currently highly cash generative.

At the end of last month the Group said that the first quarter performance was ahead of expectations, and ahead of the first quarter of last year.

The Company says that this encouraging perforamnce has been maintained in recent weeks reflecting continued strong performance in used car sales and further growth from Lookers' aftersales and after market parts distribution businesses.

Ken Surgenor, Chief Executive, confirms: "Our diversified business model and market-leading aftersales offering coupled with the cost savings we are realising is enabling us to trade resiliently through a tough market."

Teh Group says it is in advanced discusions regarding new funding arrangements and adds that it is considering alternative sources of capital in order to minimise the addtional cost of bank borrowings. "