Yee Wo
23 Dec 2016
South American Acquisition!!! In April 2015 I wrote : - "The interesting thing is Swires' have established a Malaysian VW franchise and Jardines' have established a Cambodian Mercedes Benz franchise while Inchcape have been busily buying back shares sold at 60p for, now, £8+!! I doubt Swire and Jardine are involved on the basis of an unsatisfactory ROE."- Yesterdays acquisition of Empresas Indumotora is really fantastic as, we know, Automotive Distribution is a far better business than Automotive Retailing, - So, based upon Empresas Indumotora, and perhaps more acquisitions to come I'm delighted for Jardine and Swire to keep building Retailing Businesses as long as Inchcape can keep expanding in Distribution!- Empresas Indumotoras' operations in Argentina and Colombia represent new markets for Inchcape, which already operates in Chile and Peru as distributor for BMW/Rolls Royce.- The £234m acquisition price of Empresas Indumotora was nearly the gain in Inchcape's valuation yesterday when The Market reacted to this excellent news!- More exposure to Japanese Manufacturers could become a problem IF the value of the Yen rises significantly. This has been a problem with Inchcape's Toyota business many many years ago. I hope management are cognisant of this and have appropriate "hedging" in place.- On the basis Inch was £8+ in 2015 : a GOOD business has just become a BETTER business plus with further acquisitions being mentioned, Inchcape suddenly becomes a BUY!
Simbrad
26 May 2016
Read Zeus Capital's note on INCHCAPE PLC (INCH), out this morning, by visiting Research Tree "Inchcape has delivered a robust trading update, essentially confirming it continues to trade in line with expectations. We are not changing our forecasts at present. Within the mix, it looks like North Asia has weakened further albeit the growth in South Asia more than offsets this. Elsewhere, Inchcape continues to trade well in Australasia and the Emerging Markets. The UK continues to trade well and Europe remains stable. We maintain our view that the valuation remains full relative to the UK dealer groups and we therefore..."
II Editor
15 Jan 2016
NEW ARTICLE: Trends and Targets for 15/01/2016 " INCHCAPE (LSE:INCH) As it featured in our emails due to a share buy-back initiative, we thought it would be going up. Visually, it's presenting a strong argument for entry at 641p. Currently 718p, the RED uptrend since 2009 is at 604.3p and ..."[link]
Yee Wo
08 Dec 2015
Russia According to the BBC website today Novembers monthly car sales in Russia fell 42.7% to 131,572 compared to 2014. October 2015 was also a 38.5% fall compared to last year.I do wonder how this may effect Inchcape's Musa Motors business? In the meantime Inchcape keeps furiously buying back it's own shares which, for the time being at least, is holding the SP up!
Yee Wo
23 Sep 2015
VW = Very Worried Not good watching the crisis Volkswagon is going through and contemplating both the huge fines that will be levied and the damage to the aggregate brand over time.Relevance to Inchcape? Inchcape is the largest VW dealer in the UK. The relationship with VW is retailing only, so perhaps not all that lucrative, however it would be a real shame for all parties if VW sales slump on the back of the current problems in America.
oldjoe1
04 Aug 2015
INCH .......860p Broker Target..... INCH ......... Broker Target 860p.<b>Inchcape plc’s Hold Rating Reiterated at Deutsche Bank (INCH)Posted on August 3, 2015 by Matt Cooper in Analyst Articles - UK, Investing</b>Deutsche Bank reiterated their hold rating on shares of Inchcape plc (LON:INCH) in a research note released on Friday, AnalystRatings.Net reports.<b> The brokerage currently has a GBX 860 ($13.43) target price on the stock.</b>Inchcape plc (LON:INCH) opened at 803.00 on Friday. The company has a 50-day moving average price of GBX 807.19 and a 200-day moving average price of GBX 795.32. Inchcape plc has a one year low of GBX 589.50 and a one year high of GBX 906.65. The firm’s market capitalization is GBX 3.59 billion.The business also recently announced a dividend, which will be issued on Friday, September 4th. Stockholders of record on Thursday, August 6th will be given a dividend of GBX 6.80 ($0.11) per share. This represents a dividend yield of 0.85%. The ex-dividend date of this dividend is Thursday, August 6th.A number of other research firms also recently commented on INCH. Liberum Capital reiterated a hold rating and set a GBX 680 ($10.62) target price on shares of Inchcape plc in a report on Thursday. JPMorgan Chase & Co. restated an overweight rating and set a GBX 735 ($11.48) price objective on shares of Inchcape plc in a report on Tuesday, July 28th. Citigroup Inc. reiterated a neutral rating and issued a GBX 770 ($12.03) target price on shares of Inchcape plc in a research report on Friday, July 24th. Nomura restated a buy rating and set a GBX 780 ($12.18) price objective on shares of Inchcape plc in a research report on Tuesday, July 14th. Finally, Berenberg Bank reiterated a buy rating and set a GBX 915 ($14.29) price target on shares of Inchcape plc in a research report on Friday, July 10th. Four investment analysts have rated the stock with a hold rating and five have assigned a buy rating to the stock. Inchcape plc presently has an average rating of Buy and a consensus target price of GBX 845.56 ($13.21).In other news, insider McConnell ,John sold 137,818 shares of the company’s stock in a transaction dated Wednesday, June 24th. The stock was sold at an average price of GBX 8.54 ($0.13), for a total transaction of £11,769.66 ($18,384.34).Inchcape plc is a global premium automotive distributor and retailer. The Company provides a professional and financed route to market for automotive manufacturers across five continents. Inchcape acts as a vehicle and parts distributor in 22 of its 26 markets. In these markets, the Company has responsibility for managing the value chain on behalf of a focused portfolio of premium and luxury brand partners. The Company’s responsibilities as a distributor include specifying vehicles to meet local market requirements, organizing logistics from the factory gate through to the retail center, appointing and performance managing the retail network and acting as the national marketer of the brand. The Company derives over two third of its profit from Asia Pacific and emerging markets. Its markets include Hong Kong, Singapore, Russia, Chile, Ethiopia, Australia and the United Kingdom. In June 2014, Inchcape PLC completed sale of its 24 Leng Kee Road, Singapore to Wealth Assets Pte. Ltd.
oldjoe1
31 Jul 2015
Re: INCH Broker Views.... <b>Inchcape plc PT Raised to GBX 820 at Nomura (INCH)Posted by Stephan Byrd on Jul 31st, 2015</b>Equities research analysts at Nomura hoisted their target priceon shares of Inchcape plc (LON:INCH) from GBX 780 ($12.11) to GBX 820 ($12.73) in a note issued to investors on Friday, AnalystRatings.Net reports. The firm presently has a “buy” rating on the stock. Nomura’s target price indicates a potential upside of 2.24% from the stock’s current price.In other Inchcape plc news, insider McConnell ,John sold 137,818 shares of the stock in a transaction dated Wednesday, June 24th. The shares were sold at an average price of GBX 8.54 ($0.13), for a total transaction of £11,769.66 ($18,267.36).Shares of Inchcape plc (LON:INCH) opened at 805.5000 on Friday. Inchcape plc has a one year low of £589.50 and a one year high of £906.65. The stock’s market capitalization is £3.60 billion. The stock has a 50 day moving average of £808.42 and a 200-day moving average of £795.26.The business also recently announced a dividend, which will be issued on Friday, September 4th. Investors of record on Thursday, August 6th will be paid a dividend of GBX 6.80 ($0.11) per share. This represents a yield of 0.85%. The ex-dividend date is Thursday, August 6th.INCH has been the topic of a number of other reports. Berenberg Bank reiterated a “buy” rating and issued a GBX 915 ($14.20) target price on shares of Inchcape plc in a report on Friday, July 10th. Citigroup Inc. reissued a “neutral” rating and issued a GBX 770 ($11.95) target price on shares of Inchcape plc in a research report on Friday, July 24th. JPMorgan Chase & Co. reaffirmed an “overweight” rating and set a GBX 735 ($11.41) price objective on shares of Inchcape plc in a research report on Tuesday. Liberum Capital reissued a “hold” rating and issued a GBX 680 ($10.55) target price on shares of Inchcape plc in a research report on Thursday. Finally, Deutsche Bank restated a “hold” rating and issued a GBX 860 ($13.35) price objective on shares of Inchcape plc in a research note on Friday. Four equities research analysts have rated the stock with a hold rating and five have assigned a buy rating to the company’s stock. The stock presently has a consensus rating of “Buy” and an average price target of GBX 840 ($13.04).Inchcape plc is a global premium automotive distributor and retailer. The Company provides a professional and financed route to market for automotive manufacturers across five continents. Inchcape acts as a vehicle and parts distributor in 22 of its 26 markets. In these markets, the Company has responsibility for managing the value chain on behalf of a focused portfolio of premium and luxury brand partners. The Company’s responsibilities as a distributor include specifying vehicles to meet local market requirements, organizing logistics from the factory gate through to the retail center, appointing and performance managing the retail network and acting as the national marketer of the brand. The Company derives over two third of its profit from Asia Pacific and emerging markets. Its markets include Hong Kong, Singapore, Russia, Chile, Ethiopia, Australia and the United Kingdom. In June 2014, Inchcape PLC completed sale of its 24 Leng Kee Road, Singapore to Wealth Assets Pte. Ltd.
Yee Wo
30 Jul 2015
Re: insiders buying Another decent batch of news today, with another £100m of buybacks announced. EM downturn(s) may yet yield an attractively priced acquisition for Inchcape. I listened to the new CEO Stefan Bomhard answering Analysts Questions and although he has only been in the saddle for 100 days, he did seem to have an interest in participation in Industry consolidation.
Cashman103
27 Apr 2015
Re: insiders buying I remember buying when the company was valued at £500M and a private equity company was wanting to liquidate the assets. I think it was before Lacroix came. I believe he was at Disney? I would dip my toe in first and add on weakness. Clarksons is another company I had. They changed chief executive a while back, but went from strength to strength. I`ve been in to oil and gold the last few years. They don`t have the ROE that the companies I have invested in in the past, but they have bottomed and maybe ripe for take overs. Inchcape might go down slightly in the short term, but I would never expect to know when the bottom was.
Yee Wo
27 Apr 2015
Re: insiders buying All before exceptionals: - Margin 09 - 3.1% 14 - 4.8% = 54% increase ROCE 09 - 14% 14 - 26% = 85% increaseSales 09 - £5.6bn 14 - £6.7bn = 19% increase EPS 09 - 27.1p 14 - 50.2p = 85% increaseThe financials are, based on the above figures, totally slaughtering any sort of organic business growth. I appreciate what you say about stable ROE (ROCE is my preferred measure though). Two things would put me off investing ab-initio today 1) The SP is high based, IMHO, upon Re-engineering rather than substantial growth 2) Andre Lacroix has gone to Intertek and has been replaced by Stefan Bomhard as Chief Executive. I'm always wary of "new-brooms" tendency to kitchen-sink things. If I look back some of Andre Lacroix's initial acquisitions were, with hindsight, stupidly expensive……..
Cashman103
27 Apr 2015
Re: insiders buying Hi Yee Wo. It has been a long time, but Inchcape still holds a special place in my heart it being my best investment in the past. Hope you are well too.Has the company changed from when I invested? I don`t think so, it still has the same strategy. The profit margin has always been small hence when revenue went down in 2008 or 9 it needed a rights issue. But the high return on equity turned out to be a good investment for shareholders. What would you rather have growth in revenue or a stable return on equity?. It`s fine to have both of course, but if I remember rightly compared with pre 2008 haven`t both revenue and margins improved? Surely a growth in sales and margins and a reduction in equity is better still? I`m not totally up on events. I aren`t invested in Inchcape at the moment, but am looking to come back in.
Yee Wo
24 Apr 2015
Re: insiders buying Cashman, Very Long Time……..Hope you're well?!The interesting thing is Swires' have established a Malaysian VW franchise and Jardines' have established a Cambodian Mercedes Benz franchise while Inchcape have been busily buying back shares sold at 60p for, now, £8+!! I doubt Swire and Jardine are involved on the basis of an unsatisfactory ROE. As I said 25 Aug 14 "The Inchcape stock I hold is the remnants of a 10+ bagger, consequently it is on my spreadsheets at an acquisition cost of -700p. Far too comfortable to sell my holding as long as it keeps paying dividends. The buy backs are perhaps the most tax efficient way to reward shareholders? I would be far more enthusiastic if I actually saw some tangible growth in the real business...….."
Cashman103
23 Apr 2015
Re: insiders buying It gets difficult to keep returning a satisfactory return on equity in a £3billion+ company. It`s good that if cash isn`t used to buy assets it`s returned to shareholders so they can use it. I wouldn`t grumble if shares were sold say at £8.35 and I could buy them back for 60p. There was a time when I thought the company wouldn`t survive about 6 years ago though.
albent
06 Apr 2015
Inchcape looking undervalued? Some additional data on Inchcape [link]
oldjoe1
24 Feb 2015
Re: INCH Broker Views.... 24 Feb 15 Inchcape PLC Deutsche Bank Buy 746.50 800.00 800.00 Reiterates
