My view of markets at the moment is that until evidence to the contrary appears, we need to treat UK plc as a going concern in reasonably good health. Ultimately, I expect the outcome of Brexit to be neither as good nor as bad as some pundits are suggesting. Thus the economic reaction may also be fairly middling.

I’d argue that the market reaction to the referendum has only exaggerated trends that were already visible. Weak trading on the high street, a more cautious view on housebuilders and a recovery in commodity stocks were all apparent before we voted to leave.

One company that was doing well before the referendum and appears to remain in good health today is Cambria Automobiles. The referendum result hit car dealers’ share prices hard. But there’s no reason yet to believe trading has been affected, so this could be a buying opportunity.

Last week’s trading update from Cambria reported strong trading through to the end of June. Results for the year ending 31 August are expected to be in line with expectations. As the Stockopedia graphic below shows, these have risen steadily over the last year:

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You could make a case for saying that car dealers are nearing the top of a cyclical market. I’ve questioned this myself. But I believe the post-referendum fall in Cambria’s shares has left them cheap enough to offset this risk, on just 9 times trailing earnings.

I’m also less concerned about cyclical risks than I am with housebuilders. Unlike houses, new cars are more affordable than ever. High levels of new car registrations should be creating a multi-year pipeline of high-margin servicing and warranty work for big dealers.

This is especially true for the many cars bought on personal contract plans, where monthly payments are calculated based on an expected final value. I stand to be corrected, but I’d expect that failure to maintain a main dealer history might result in a reduction in the contractual final value of a car.

I’m also encouraged to see that recent decline has caused Cambria to qualify for the Jim Slater Zulu Principle screen. This popular screen has generated an annualised return of 18.3% since its inception.

Cambria’s StockRank of 92 has also pushed it close to the top of