Updates

Lookers

July 2023

Investing in shares may lose you all or some of your money. Past performance is no indication of future performance. Some of the shares recommended here may be small company shares, which can be relatively illiquid and hard to trade and this makes such shares more risky than other investments.

I had long been expecting a bid for Lookers in my previous updates, especially as the shares languished 20% below the 95p NAV and below the 102p Constellation had paid to acquire a 19% stake from former non executive Tony Bramhall. This month Constellation flipped its stake to Alpha Auto Group (AAG) - a Toronto based car dealership business - which has offered 120p in cash for Lookers. The Canadian business was launched in 2014 and has just 22 sites in the US and Canada versus the 150 that Lookers will add. Despite the small number of dealerships, AAG turned over US$1bn in 2022 and generated EBITDA profits of circa US$100m according to one report. Accept the offer. Tipped at 52p in April ‘21; gain 131%. ...

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Best of the Best

Lookers (August 2023)

Lookers (April 2023)

Lookers (November 2022)

Lookers - Cash and property of 95p versus share price of 79.5p (September 2022)

Lookers (July 2022)

Lookers (November 2021)

Lookers - Eps forecasts climb to 12.6p (September 2021)

Lookers - Unscheduled update: forecasts increased by >30pc! (May 2021)

Lookers - Prospective PE drops to 5.8 next year (April 2021)

Lookers - Trefic and Bramall take up full 43% entitlement (August 2009)

With small companies there is an above average degree of risk compared to buying blue chips. Please be aware that we have not assessed the suitability of any of these investments for you. The newsletter simply states a personal view and diarises the editor’s investment decisions. Please speak to your stockbroker or other qualified individual to ascertain whether any of these companies mentioned would form useful additions to your own portfolios. Past performance is no indication of future success.

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