Inchcape Discussion Board http://www.iii.co.uk/investment/detail?code=cotn:INCH.L&display=discussion http://www.iii.co.uk/icons/logos/uk_logo.gif http://www.iii.co.uk tag:iii.co.uk,2003:tst.9150845 JP Morgan rates the car distributor and retailer as “overweight” with a target price of 440p, and says the company’s shares have fallen too far from their high of 425p in July 2011. The broker sees the discount of 18 per cent to the wider retail sector in 2012 as unjustified, given Inchcape’s wide geographic exposure and attractive distribution model, and says that despite negative sentiment on consumer spending the investment case is unchanged.

http://www.cityam.com/latest-news/best-the-brokers/best-the-brokers-9

By Yee Wo ]]> http://www.iii.co.uk/investment/detail?code=cotn:INCH.L&display=discussion&id=9150845&action=detail Thu, 12 Jan 2012 00:57:00 GMT Yee Wo tag:iii.co.uk,2003:tst.9115366
Good Luck to all for 2012!

By Yee Wo ]]> http://www.iii.co.uk/investment/detail?code=cotn:INCH.L&display=discussion&id=9115366&action=detail Tue, 03 Jan 2012 01:36:00 GMT Yee Wo tag:iii.co.uk,2003:tst.8912450 7:22 am
http://bit.ly/tjdCdR
Broker Views:

Tower Resources: Westhouse Securities maintained a Buy rating on the stock, with a target price of 14.80p

Rockhopper Exploration: Westhouse Securities maintained a Buy rating on the stock, with a target price of 658.00p

Huntsworth: Numis Securities Ltd maintained a Buy rating on the stock, with a target price of 165.00p

Lloyds Banking Group: Evolution Securities upgraded the stock to Buy and increased the target price to 50.00p

Stagecoach Group: RBC Capital Markets upgraded the stock to Outperform and increased the target price to 300.00p

Inchcape: Numis Securities Ltd upgraded the stock to Buy and increased the target price to 390.00p By SpikeyDT ]]> http://www.iii.co.uk/investment/detail?code=cotn:INCH.L&display=discussion&id=8912450&action=detail Fri, 04 Nov 2011 07:34:00 GMT SpikeyDT tag:iii.co.uk,2003:tst.8903909 http://www.telegraph.co.uk/finance/markets/questor/8860659/Questor-share-tip-Inchcapes-global-footprint-is-its-strength.html


The global car market could hit some speed bumps next year, as expensive purchases are always the first to go when belts are being tightened. However, the outlook for Inchcape, as a globally diverse dealership, looks sound. Questor says buy.

By Garry White7:00AM GMT 01 Nov 2011
Inchcape
326.3p -11.4
Questor says BUY
Inchcape

Last week, the company said that revenue in the third quarter was slightly better than expected, rising 2.2pc year on year to £1.46bn. Like-for-like revenues rose 4.1pc. The dealership said the global recovery in car sales was "uneven" with strong growth momentum for luxury and premium vehicles in Asia Pacific and emerging markets, and a further weakening of consumer confidence in the UK and Europe.
Indeed, yesterday, luxury dealership HR Owen warned that demand conditions in the high-end car market in the UK had deteriorated further. This is why Inchcape's Asian exposure is a key benefit for the group.
Also, the company now expects to end 2011 with a net cash position of about £160m, which is higher than previous guidance. This would represent about 10pc of the group's current market capitalisation, which is good place for the group's balance sheet to be at this time.
The shares are trading on a December 2011 earnings multiple of 9.8, falling to 9.1 next year. The prospective yield is 3pc.

The shares were first tipped at 393½p on March 9 this year and are down 17pc compared with the FTSE 100 down 5pc.
The opportunity in the Asian luxury car market over the medium term cannot be overstated.
They remain a buy for a recovery in the global car market. By SpikeyDT ]]> http://www.iii.co.uk/investment/detail?code=cotn:INCH.L&display=discussion&id=8903909&action=detail Tue, 01 Nov 2011 22:08:00 GMT SpikeyDT tag:iii.co.uk,2003:tst.8888185 Friday, 28 October 2011
http://www.independent.co.uk/news/business/sharewatch/investment-column-weak-valuation-and-strong-yield-underpin-the-case-for-astrazeneca-2376870.html
Inchcape

Our view: Buy

Share price: 339.1p (+17.9p)

The roads of Asia may not be paved with gold but they are proving prosperous for Inchcape, the retailer of cars from BMW to Porsche and Jaguar.

In an interim management statement published yesterday, the dealer said it continued to see an "uneven global recovery" with its business benefiting from "strong growth momentum" for luxury and premium vehicles in the Asia-Pacific region.

More specifically, it said it had a "stronger than anticipated" third quarter in Asia after its supply situation improved faster than it previously indicated in Hong Kong and Singapore.

However, Inchcape warned that consumer confidence in the UK and Europe had "further weakened", although this did not offset a 2.2 per cent rise in group revenues to £1.46bn from 1 July to 26 October.

The uptick helps offset the caution surrounding consumers in Western countries, showing that Inchcape has what it takes to perform despite the tough conditions.

Potential investors should also note that Inchcape described its financial position as "strong", not least because it expects to end 2011 with net cash of about £160m on its balance sheet.

Overall, there were no ugly surprises in the update. The investment case is made all the more attractive by the fact that shares in the group trade on a forward earnings multiple of just 8.5, which along with its emerging market growth leads us down the road of recommending them. By SpikeyDT ]]> http://www.iii.co.uk/investment/detail?code=cotn:INCH.L&display=discussion&id=8888185&action=detail Fri, 28 Oct 2011 06:39:00 GMT SpikeyDT tag:iii.co.uk,2003:tst.8886917 http://www.guardian.co.uk/business/marketforceslive/2011/oct/27/inchcape

Posted by
Katie Allen Thursday 27 October 2011 16.18 BST guardian.co.uk
Consumers across Europe are feeling the pinch and buying new cars is probably one of the furthest things from their minds. But not so in the emerging markets of Russia and Asia where car dealerships operator Inchcape reports rising demand for luxury brands today.

Inchcape, which operates in 26 markets and represents brands including BMW, Jaguar and Mercedes-Benz, said sales for the third quarter actually came in better than it had been expecting. Like for like revenue was up 4.1% at actual currency and up by 0.1% at constant currency rates.

Trade in emerging markets makes it optimistic:


We continue to expect the group to deliver a solid performance in 2011 benefiting from an increased demand for luxury and premium vehicles in emerging markets and the faster than anticipated improvement of the supply chain in most of our distribution businesses, offset to some extent by increased margin pressure in the UK and Europe due to weakening consumer demand. Our 2011 guidance for a solid trading performance is unchanged.

Inchcape, which generates two-thirds of its profits in Asia Pacific and emerging markets, also said the supply situation in the wake of the Japan earthquake and tsunami had improved more quickly than feared.

The positive trading news left its shares up 18.1p, or 5.6%, at 339.3p in a wider FTSE 250 index of midcaps up 2.9% at 10728.

Panmure Gordon analyst Mike Allen has a "buy" recommendation on the shares and a price target of 372p. He comments:


We still believe the risk/reward looks attractive and that this update should be taken well.

Execution Noble analysts comment:


Overall, a lot of small positives. The only negative in the statement is that management is flagging increased margin pressure in the UK and Europe for Q4 due to the weak consumer environment. However, we think that the Q3 performance demonstrates Inchcape's ability to outperform in difficult markets. By SpikeyDT ]]> http://www.iii.co.uk/investment/detail?code=cotn:INCH.L&display=discussion&id=8886917&action=detail Thu, 27 Oct 2011 17:30:00 GMT SpikeyDT tag:iii.co.uk,2003:tst.8855401 By Edmond Jackson | Tue, 18/10/2011 - 00:00

Should you touch the car industry in these difficult times?

UK sales are effectively flat and could be squeezed by austerity measures; however such news and poor sentiment can work usefully for share buyers by way of de-ratings and low price/earnings multiples. And where such a distributor has international revenues, developing countries appear more resilient and offer plenty of long-term scope. For example, strong new-car data has just emerged from Russia, where car sales rose 26% in September, with the market up 45% so far this year.

This should be beneficial for Inchcape (INCH), the FTSE 250-listed car retailer and distributor which derives about a fifth of its revenues from Russia and emerging markets, while also improving its first half 2011 profit in the UK by virtue of exposure to a buoyant (to date) luxury car market.

Yet from July the stockmarket de-rated the shares from 425p as low as 270p in the early October sell-off, currently about 330p as the market swings between hope and fear over European debt. Inchcape is a quality cyclical, the 'c' meaning the shares can still get punished when markets turn down - yet the 'q' ensuring it is a priority for recovery buying.

So with markets capable of taking another leg down as European debt issues come to a head over the next few weeks, or advancing strongly if confidence continues to improve, it is worth being aware of Inchcape for trading potential. This may be enhanced by an interim management statement imminently (21 October last year).

While car growth in developing countries offers good long-term potential, timing your buying is tricky in the near term - hence worth considering an averaging approach in stages.

A 3.6% rise in September for US auto sales shows the industry is currently resilient, however Inchcape has no US exposure; and deriving nearly a third of group profit from Asia is a risk should China experience an economic hard landing. So the Chinese statistics need watching: for the time being momentum is strong with Chinese growth over 9% expected to be confirmed this week. Inchcape has recently had some difficulties supplying Hong Kong as a result of the Japanese earthquake limiting car exports.

Generally though, Inchcape has made a good long-term strategic decision to prioritise Asia-Pacific markets including Australia and New Zealand.

Both the long-term share price chart and profit versus earnings trend are affected by a dilutive nine for one rights issue in March 2009 - so hopes of a return to £10 a share, like in 2007, are scotched for the medium term even though last year's normalised pre-tax profit of about £215 million matched 2006 and the consensus among brokers projects £224 million this year and £243 million in 2012. After 16% normalised earnings growth last year, about 8% is expected this year and 5% next.

This implies a forward price-earnings multiple of nine times where the market has turned more cautious on the rating since 2007 when it averaged the mid-teens. This is a typical sentiment swing after a cyclical entertains a growth rating during boom years, then after a downturn investors are puzzled as to which rating is truly justified.

The market understandably does not want to rate Inchcape much higher when the European debt crisis is at a tipping point, with either a credible way out or another dent to confidence. The downside of a recession is shown by 2008-09 when this group's normalised pre-tax profit nearly halved relative to 2007 (although those car sales were likely buoyed by unsustainable credit).

For two years, management has asserted "resilient after-sales comprising 50% of gross profit" although after-sales do not appear to have buttressed the overall numbers enough in down years and their percentage rises anyway when distribution profits fall.

Furthermore, dividend payments were suspended for 2009-10, after 27.0p a share in 2 By SpikeyDT ]]> http://www.iii.co.uk/investment/detail?code=cotn:INCH.L&display=discussion&id=8855401&action=detail Tue, 18 Oct 2011 09:17:00 GMT SpikeyDT tag:iii.co.uk,2003:tst.8646082
UK A N A L Y S T By forwardloop ]]> http://www.iii.co.uk/investment/detail?code=cotn:INCH.L&display=discussion&id=8646082&action=detail Fri, 12 Aug 2011 00:02:00 GMT forwardloop tag:iii.co.uk,2003:tst.8593057 Created: 29 July 2011 Written by: John Hughman
http://www.investorschronicle.co.uk/Tips/Buy/TipsOfTheWeek/article/20110729/45f65be2-b8fe-11e0-a777-00144f2af8e8/Inchcape-avoids-pile-up.jsp

Worries that tough economic headwinds, and supply constraints caused by the Japanese tsunami, would see Inchcape suffer a reversal proved to be overdone - the car retailer delivered profits ahead of market expectations.
Still, supply chain issues did have a significant effect and meant a 5 per cent dip in like-for-like sales and a slide in trading profits in most regions. Inchcape did, however, deliver a 6.5 per cent increase in overall trading profits, thanks partly to good cost control, but also because of strong luxury car demand in its emerging markets - which include Russia, China and South America - and where trading profits trebled to £25.9m. A focus on premium and luxury marques also meant a better-than-expected UK performance, where underlying sales climbed 1.1 per cent in a shrinking market and trading profits climbed 13.8 per cent to £35.5m.
Inchcape warned that the rest of 2011 would remain difficult, with two-thirds of the impact of the Japanese supply disruption likely to be felt in the second half, but was confident that investment in aftersales and new franchises in emerging markets and further cost savings would compensate.
Broker Arden Partners expects full-year pre-tax profit of £225m and EPS of 35.1p (£214m and 31.7p for 2010).
INCHCAPE (INCH)
ORD PRICE: 385p MARKET VALUE: £1.77bn
TOUCH: 385-386p 12-MONTH HIGH: 437p LOW: 250p
DIVIDEND YIELD: 2.6% PE RATIO: 13
NET ASSET VALUE: 293p* NET CASH: £189m
Half-year
to 30 Jun Turnover (£bn) Pre-tax profit (£m) Earnings per share (p) Dividend per share (p)
2010 3.10 115 17.2 nil
2011 2.93 127 19.6 3.6
% change -5 +10 +14 -
Ex-div: 3 Aug
Payment: 5 Sep
*Includes intangible assets of £569m, or 123p a share
Guide to the terms used in IC results tables.
More analysis of company results
More share tips and updates...
TIP UPDATE:
Buy
Inchcape has coped well with severe short-term difficulties, and remains well-positioned to tap into the 33 per cent increase in new car sales expected by 2015. On a forecast PE ratio of 11, we reiterate our buy tip (359p, 31 March 2011). Buy By SpikeyDT ]]> http://www.iii.co.uk/investment/detail?code=cotn:INCH.L&display=discussion&id=8593057&action=detail Fri, 29 Jul 2011 09:39:00 GMT SpikeyDT tag:iii.co.uk,2003:tst.8561327 Inch is a prodominant global player and a huge one at that.
It also is not tied into Japan for all of it's sales due to their global reach.
The director buying of late is a good indication into what direction the sp is will to moves towards and the Chinese and east asian push will deliver the rewards as they start to establish a firm footholds in these terrortories. By dalek21 ]]> http://www.iii.co.uk/investment/detail?code=cotn:INCH.L&display=discussion&id=8561327&action=detail Thu, 21 Jul 2011 10:19:00 GMT dalek21 tag:iii.co.uk,2003:tst.8335907
Is this an indication of good news come the Interims next month? By Yee Wo ]]> http://www.iii.co.uk/investment/detail?code=cotn:INCH.L&display=discussion&id=8335907&action=detail Wed, 01 Jun 2011 22:36:00 GMT Yee Wo tag:iii.co.uk,2003:tst.8272860
Thanks for that.

Cheers,

ruwenzori By Ruwenzori ]]> http://www.iii.co.uk/investment/detail?code=cotn:INCH.L&display=discussion&id=8272860&action=detail Wed, 18 May 2011 16:18:00 GMT Ruwenzori tag:iii.co.uk,2003:tst.8271738 Record Date - 20 May 11
Payment Date - 14 Jun 11

Source : HSBC Invest Direct website.
By Yee Wo ]]> http://www.iii.co.uk/investment/detail?code=cotn:INCH.L&display=discussion&id=8271738&action=detail Wed, 18 May 2011 14:11:00 GMT Yee Wo tag:iii.co.uk,2003:tst.8270735
I feel that I have looked in most places (fundamentals, news and the Inchcape site) but can't find the actual date when it goes ex-div or the payment date. Can someone please enlighten me?

Cheers,

ruwenzori By Ruwenzori ]]> http://www.iii.co.uk/investment/detail?code=cotn:INCH.L&display=discussion&id=8270735&action=detail Wed, 18 May 2011 12:04:00 GMT Ruwenzori tag:iii.co.uk,2003:tst.8238662
Created: 11 May 2011 Written by: John Hughman
Fragile consumer confidence means the motor trade may not exactly be speeding ahead at the moment, and the latest figures from the Society of Motor Manufacturers & Traders point to a fairly stagnant market.

But listed players are managing to outperform the market, despite the fact that valuations remain in the doldrums.

This is tempting bidders out of the woodwork. Last week Lookers confirmed an approach from a consortium of property investors including Jack Petchey, whose investment vehicle Trefick already owns 17.3 per cent of the business.

The "highly speculative" bid was rejected, but it highlights the value inherent in the sector.

While the bidders are no doubt interested in the strength of Lookers' trading operation, it's the group's significant freehold property portfolio that looks to be the main attraction - at the last count, it had £181.5m of freehold and long-leasehold property on its balance sheet, against a market capitalisation of just £280m.

"Unlocking that value is the name of the game and the Trefick consortium are clearly frustrated at the situation," said Nick Bubb at Arden Partners.

Aim-traded Vertu, which reported full-year results this week, is similarly asset-rich but looks to be significantly undervalued at present.

Since coming to market in 2006 it has snapped up underperforming garages and freehold properties.

It investing £14.6m last year, adding 16 new outlets, taking the total to 75.

It reported a 22 per cent increase in underlying pre-tax profits and stronger than expected trading in the important months of March and April.

But, at 30p, it remains at a significant discount to tangible net assets, which rose 7.5 per cent to 40.1p over the year, so it is no surprise to see directors snapping up the shares.

The industry still faces a number of speed bumps, not least the threat of vehicle shortages as a result of the recent earthquake in Japan, which could hit second-half trading.

Analysts are watching Inchcape in particular, given its exposure to Japanese marques Toyota and Subaru.

"Although the first quarter won't have been affected by the big Japanese supply chain disruption, it's hard to believe that the second quarter will escape," said Mr Bubb.

There are also concerns that the increasingly important aftersales market could be under pressure, partly as a result of the falling number of nearly new cars on the road, and also because hard-up motorists are deferring all but the most essential maintenance.

Pendragon saw a modest decline in aftermarket turnover, but it's increasing profitability by targeting older vehicles, just one of the many initiatives dealers have put in place to cope with the softer market.

That general operational improvement is just one of the reasons we believe that the negative sentiment denting valuations is misplaced.

http://www.investorschronicle.co.uk/Companies/ByEvent/TradingNews/Analysis/article/20110511/4a8a33f0-7bae-11e0-95fc-00144f2af8e8/Motor-industry-ticking-over.jsp By SpikeyDT ]]> http://www.iii.co.uk/investment/detail?code=cotn:INCH.L&display=discussion&id=8238662&action=detail Wed, 11 May 2011 18:22:00 GMT SpikeyDT