Good morning, it's Paul & Jack here with the SCVR for Wednesday.

We'll leave it there for today. I hope subscribers are not getting too despondent about the damage to our portfolios in this current sell-off.

Agenda -

Paul's Section:

Lookers (LON:LOOK) - Q3 update - the good times continue to roll. Despite a huge fall in volumes of cars sold, high margins mean that FY 12/2021 profit expectations are "materially" raised. Zeus upgrades by 34%! Remarkable stuff. The party has to end at some point, but car dealers are becoming more valuable by the month. They're on very low earnings multiples still.

Marshall Motor Holdings (LON:MMH) - another car dealer, with a similar story - bumper Q3 profits due to profit margins rising more than enough to offset lower volumes. Profit guidance upped from >£40m, to >£50m. Sees no immediate end to extraordinarily inflated used car prices. Similar valuation to LOOK, so an interesting value share. Bear in mind that profits will probably at least halve in future, once things normalise.

Jack's section:

Netcall (LON:NET) - provides software solutions to customers with large, complex ecosystems in the financial services, healthcare, and public sectors. The trading momentum looks good and it could be that the group is approaching an inflection point, but the valuation looks full.

Explanatory notes -

A quick reminder that we don’t recommend any stocks. We aim to cover trading updates & results of the day and offer our opinions on them as possible candidates for further research if they interest you. Our opinions will sometimes turn out to be right, and sometimes wrong, because it's anybody's guess what direction market sentiment will take & nobody can predict the future with certainty. We are analysing the company fundamentals, not trying to predict market sentiment.

We stick to companies that have issued news on the day, with market caps up to about £700m. We avoid the smallest, and most speculative companies, and also avoid a few specialist sectors (e.g. natural resources, pharma/biotech).

A key assumption is that readers DYOR (do your own research), and make your own investment decisions. Reader comments are welcomed - please be civil, rational, and include the company name/ticker, otherwise people won't necessarily know what company you are referring to.

Paul’s Section:

Lookers (LON:LOOK)

60.7p (pre-market open) -…

Unlock the rest of this article with a 14 day trial

or Unlock with your email

Already have an account?
Login here