Always a good sign Directors buying
She's been buying pretty regularly this year
Printable View
https://www.nzx.com/announcements/413216
Change of listing name and ticker 2CC happening on 26th June.
“This change marks a new beginning. A reset was needed and that is what has happened. It’s now about accelerating performance to new heights. The new board and CEO are well established now and working exceptionally well together. We’ve made tremendous progress in the recent months with the appointment of new Auditor UHY Haines Norton Sydney, successfully changed over trade finance providers to strengthen our access to funds. There is almost an entirely new leadership team in place and their progress on results over the last quarter in particularly is a great start. We’ve done a reset, the past is past and we want to be judged on our performance from this point forward,” Stiassny says.
from the annoucement:
“This change marks a new beginning. A reset was needed and that is what has happened. It’s now about accelerating performance to new heights. The new board and CEO are well established now and working exceptionally well together. We’ve made tremendous progress in the recent months with the appointment of new Auditor UHY Haines Norton Sydney, successfully changed over trade finance providers to strengthen our access to funds. There is almost an entirely new leadership team in place and their progress on results over the last quarter in particularly is a great start. We’ve done a reset, the past is past and we want to be judged on our performance from this point forward,” Stiassny says.
the past is the past. Flush the dunny and move on
Another 1.6% gone.
http://nzx-prod-s7fsd7f98s.s3-websit...274/396726.pdf
CEO on the register.
http://nzx-prod-s7fsd7f98s.s3-websit...350/396821.pdf
Ticker code change and name change 0n 26th June.
2CC.2 Cheap Cars Group ltd.
https://www.nzx.com/companies/2CC
Start of a new era aye Percy
Maybe. It's more concerning to me that this is all NZX can put up for investors.
Our market is becoming, or maybe already is, a joke. If we're forced into to considering investing in a two-bit vehicle low-end cost sales company, what hope is there for the market overall. Better just to pick a few of the sustainable earners and get into them when the market decides they're 'cheap as'. And hold for the earnings, whether or not they make any capital gains.
I refuse to get excited about a low-cost vehicle sales company who markets themselves as 'cheap'. I really don't like the association with 'cheap', but this is what our NZX is serving up to us, is this as a good as it gets? It seems so.
Great post Baa Baa....
Siverblizzard88.We may get our orders filled a little cheaper tomorrow when their listing name changes to 2 cheap cars..Fine thing to invest in The Colonial Motor Company or New Zealand Automotive Investments ,but 2 cheap cars.??.
Bring on tomorrow..May have to increase our buy orders.?...lol.
The NZX has been a concern for a long long time now, their failure to draft up a good number of IPOs is laughable at this stage. They know they have this problem and they’ve tried firstly to reinvent the exchange itself by having an alternative exchange, then they gave up and tried restructuring fees and listing rules. I’m not sure if they do it or not but it seems what they never tried was engaging with companies when they’re young or form partnerships with companies that do do that. How does Snowball Effect have over 100 companies they’ve raised capital for and not one single one has gone on to be a listed company on the NZX.
These days we lose more companies from takeovers like Pushpay and quite possibly Eroad soon than we get in new listings. Even the ASX gets more NZ listings than NZX does, which when you consider the initial listing fee for the NZX is roughly $38k and the initial listing fee for ASX is $56k AUD, companies prefer to go to the ASX even when it cost more, usually with the assumption that its easier to raise capital there and they might be right. Though I feel like platforms like Sharesies has actually changed the landscape for investing in NZ as its made it easier to raise money. During the Infratil capital raise recently people on sharesies were outraged that they only got 5% of the shares they wanted, I think the demand for investing in companies is there, what never changed during that time was the companies wanting to raise money on the NZX and NZX’s engagement with these companies.
It is true that it should be a concern that one of the highest potential for a good gain in this market isn’t a top tier innovative high growth company, but one of the most straight forward businesses around, that is in the middle of a turnaround with a majority shareholder having a hissy fit and trying his best to throw all his shares out the window. What can I say, I wish it was better, but in honesty I’m not sure the NZX knows how to turn this around given how much time they’ve been trying and I’m surely no influence on them, so I’ll just make the most of whats available and buy some cheap shares in a company selling cheap cars!
It seems your sophisticated high premium portfolio maybe be tainted with the word cheap now.
Indeed I may just have to increase the buy order or am I 2 Cheap to do so.
In a way the name aligns with their brand and that will probably help a good few interested investors find their stock. However it may lower their chance of getting a movie date.
Well well well.
Which company is the first company on NZX list of companies.?
Which company is the first company on my Stocknessmonster.com watch list.?
Which company is top of the list of my ASB share trading platform watch list.?
2CC Number One on all lists.
Brilliant.
Wow what a start to the new year ..going very well …just look at those margins
Love the bits about being ‘being ‘super focused’ and ‘ahead of the curve
http://nzx-prod-s7fsd7f98s.s3-websit...313/398016.pdf
percy failing in his duty to keep this thread on first page …had to go to page 4 to find it
Yes a big WOW..!!
Most probably time for a "well positioned".
Good to see over 500,000 wanted at 28 cents.
The strong trading should see 2CC in a lot stronger position to upgrade and expand their foot print.
New business strategy is proving to be very successful very quickly.
.Pleasing seeing how strong they are in EVs and Hybrids.
• EV/HEVS leadership is further strengthened moving to 52% of total sales for Q1 (up from 41% for FY23).
NPAT this year forecast $5m …..eps of 11 cents
Jeez …..deserves a share price over $1 on that performance
Well over $1 if you take into account the growth/expansion they are talking about
Growth/expansion.
Currently 12 sites.
$5 mil NPAT would enable to add a further 3 to 6 sites.
Foot print growth.3 sites 25% growth.6 sites 50% growth.
Therefore it may be possible to grow eps by 20% to 30% over the next couple of years..Logistics improvements will help.
the horse has bolted eh Percy. bugger for the 28 cent bid lol. Ah well at least got a few thousand
Good job everyone that managed to get some 'cheap' shares!
Massive update, they have exceeded my expectations!
Gross margins at 24% way ahead of the 21% they were aiming for.
EV/HEVS moving to 52% of total sales, shows a clear focus where the business is heading and thats probably where they are getting their good margins too.
They continue to make good head way on cost cutting and saving initatives.
My system says they are currently in a "trading halt " ?
Someones just taken all the shares at 40 cents, basically next to nothing for sale now.
This is a nice asymmetric play and company to hold during an uncertain inflationary period.
Can you imagine the damage to the country/ economy if there wasn't a functioning used car market. Regardless what the govt do, the consumers will bare the cost and there is only so much they can bare.
a nice way to start your investment percy well done
looks like the price is slipping away :scared:
Next interim report will be where it really starts to get rewarding being a shareholder, once a interim dividend is announced or even a share buyback given how undervalued the share price is.
I'm alright wherever the share price goes for the time being, if it comes down below 35 cents I will top up, if it stays above that I'll just twiddle my thumbs.
With the strategy being adopted by 2CC to materially expand gross margin, I’m expecting the Commerce Commission to require the company to change its Cheap branding on the grounds it’s breaching the Fair Trading Act!
A few years ago they had margins of 22%, which declined to 17% for the last financial year. In short I believe it was due to the finance arm and employing a third party to procure the vehicles. Perhaps it resulted in alot of rework. Anyhow the finance arm no longer exists and the procurement is now back to being done in-house. I noted that they brought back the operations guy who left just before the IPO. We have an new CEO that is focused on sales margin. I have nothing against the previous CEO and managing director of the finance arm. Alot of experience and proven track record of building a loan book. Unfortunately covid did affect sales volume, which ultimately affected lending volumes and margin. I looked into it further they have 3 tier of borrowers. But they only provided in-house lending to the middle tier. So a very narrow range. The impact of lending out money put a huge strain on cashflow. You could see it. This threatened their survival so some tough decisions had to be made. They are back to their original operation which was very profitable. Yes regulations are evolving. But think about it for a moment. If the govt makes it too difficult to purchase used vehicles. You will start to see certain parts of the country straining.
They have been guilty of past bad conduct and they paid for it. This hasn't impacted their ability to sell cars. Their share of the total NZ new car registration numbers has consistently been around 6-7% and they looking to grow this. There's alot of qualitative stuff to talk about, but I won't because I could go on forever.
Other similar competitors are valued at 10x.
The market was pricing the company at 10x $1.3m which included the one off restructure charge. Take that out, the company was valued at around 6.5x. So they were already undervalued. They are on track to earn $4m+ which they have been proven to earn in previous years. That earnings multiple just got alot lower.
CMO.The Colonial Motor Company Ltd. are on a PE ratio of 10.20 with a market cap of $300 mil according to ASB,
while ,TRA Turners Automotive Group Ltd.are on a PE of 9.7,with a market cap of $319 mil.
2CC 's PE is currently 13.38 and their market cap at 38 cents is $17.3 mil.
Aussies;
CAR Carsales PE 15.61
APE Eagers PE 11.76
Closed at 42 cents, which is a 9 month high.
Yeah anything on offer below 40 cents is constantly been taken out. The only person that can bring the price down would be Eugene.
Their next quarter update will likely be October, with interim report due in November. The first quarter profit was $1.4m, which is this current quarter is similar should bring it up to $2.8m for the 6 months. If they payout half in dividend we should be looking 3 cents for the interim.
Their payout ratio of 50% earnings i am assuming was put in place to support the cash hungry finance book. Now that has been killed they will lift the payout ratio up towards 80% i reckon. There is just no need for them to hold onto all the cash as the balance sheet is clean as a whistle with no debt.
Even looking at last year, what is probably going to be their worst year ever.. due to the huge disruptions at board and management team level, they generated impressive cash flows:
Operating activities =========$10,908k
Less lease payments======== $2,009k
Less net pp&e purchases ======$167k
Less inventory purchases======$1,623k (company says $10m inventory is steady state for current yard space so need to add back since it was sold down to $8,377k as per balance sheet)
Rawz free cash flow calc $7,109k
So $7.1m fcf and market cap is $19m today.........
They may pay a high percent of the profits to dividend, but usually for interim profits companies try not to get carried away and payout too much and the way I see the current management team they aren't the type to run the company on a shoe string. They will want to keep enough to give themselves a buffer and they might have an eye on growth. They may even think about acquisitions which would demand a large amount of capital. Companies only payout a large part of the profits if they have no better use for the capital, which means less likely any ambition to grow the business in a big way.
I always stick to a Buffet view of things, that a profit is exactly whats left and no other figure really changes that, sure theres non cash items to boost cashflow, but something like depreciation which is a non cash expense originated from capital spending and a business should always have in mind they need to keep reinvesting that deduction to maintain their assets for the future.
I am not expecting an interim divie.
Having the leading position in imported second hand EVs and Hybrids, I would like to see them use that advantage to expand their footprint,with another 2 or 3 sites.
To Rawz's inventory purchase figure of $1.6 mil a further $1.6 mil would be required for 3 new sites,.
Capital also needs to be spent to refurbish and modernise existing dealerships.
At the end of their financial year next March I would think they will be "well positioned" to pay an excellent final fully imputed divie,and then resume interims .
On The Other Hand..??
2CC are trading extremely well.Their balance sheet is strong and their stock turns are high,as is their equity ratio.
I would expect their new banker is impressed,and keen to advance them further funds.
If this is the case an interim divie may well be on the cards.
Methinks punters will need to pay over $1 soon
When does 2CC become ‘not cheap’
Miracle man Mike doing wonders here
Im loving it. Making heaps here, losing heaps on KFL warrants. Love this game lol
One day ill get it right
Anything below $1 cents is in my books considered undervalued
Anything around $1.20 is around fair value
Overvalued would be anything above $1.50
It can definitely go overvalued if it enters speculative territory, usually when they announce massive expansion that sings high potential. Imagine if they said they were opening another 10 sites in the next 5 years or starting a branch in Australia, all of a sudden the market starts thinking way ahead. Maybe they start a premium dealership called 2 expensive cars!
10 orders at 47 cents for 13,986 shares, looks like the sharesie folks are here.
Lovely uptrend for the stock, at 48 cents thats a 10 month high on todays close.
Same! Had a buy sitting at 28 c too.Not chasing it, I didn't check to see when results were coming,sa la vie..
Probably see those 4000 shares at $0.60 taken out today. even at 60cents its P/E would be 5.9 based on midpoint of FY24 forecast profit so good buying.
0 to 100 real quick.
It's a good thing it doesn't have the financial and operational leverage.
if they do $5m npat (the top of their FY24 guidance).. at 65cents its a 5.9 P/E
Cheap as chips!
Stock closing at 52 cents makes that a 11 month high! If the 65 cent gets taken out that almost would bring it to a 12 month high.
All the 2CC shareholders must be high as a kite at the moment! Stocks up 79% in the past week!
Up 7% today. Sheesh its good yet still trading on compelling multiples
Good news
Apparently Turners are witnessing a slowdown in the used car market, with buyers seeking more vehicles below $15,000.
Exactly 2CC's market eh
Go 2CC
However, listed company Turners was witnessing a slowdown in the used car market, with buyers seeking more vehicles below $15,000.
Exactly 2CC's market..
Great seeing Winner69 one step ahead of me...lol.
Guess he is as excited as I am with the share price at 59 cents..
Thats a ringing endorsement for 2CC, the money making recession stock; soon to be the market darling! Everything lining up for the stock to continue its run.
What a massive week we've had closing at 59 cents! Too bad thats the end of trading for the week, looks like next week we are well poised to break 60 cents.
El Cheapo cars in Porirua apparently very busy these days
Pat Baker kept saying the years theres plenty of punters wanting cheap cars and if watch margins plenty of money to be made
Maybe Pat should float El Cheapo
There was only one comparable car model that both stocked, the nearest price comparisons with El Cheapo:
2013 Toyota Aqua Hybrid:
El Cheapo 91,245km
$13,995
2 Cheap Cars 91,843km
$11,164
Pat was indeed right, plenty of money to be made if you watched your margin ;)
2013
Well fellow 2 Cheapers it is great seeing our company as NZX's Top Weekly Gainer,up 21 cents or 55.26%.