2CC - 2 Cheap Cars Group

[blackcap]

There are a few companies listed in NZ where there is a majority shareholder..
Company Code.............% majority held......PE ratio.........Dividend yield....Actual or projected
AFT..................................68.69%....... .........36.11..............0.20%.........Actual..
AGL..................................50.79%....... ..........20.................8.12%..........Actual
BGL...................................77.95%...... ..........12.18.............6.09%..........Actual.
DGL...................................66.11%...... ...........12.75.............2.45%..........Actual
JLG...................................70.83%...... ...........18.26..............3.00%...........Actu al.
MCK..................................70.79%....... ..........8.41................1.62%..........Actua l.
2CC...................................75.924...... ............6.88................11.62%....Projecte d
2CC based on share price 86 cents and earnings at 12.5 cps [NPAT $5.7mil] and 10 cent divie.

We need to compare like with like. The only option on the NZX is the consistently well performing Turners, with more liquidity and free float than 2CC and they trade on a PE of 10.

For that very reason 2CC will trade at PE's of under 10 for the foreseeable future.

Again, I hope I am wrong.

I am adding to my holding at these levels for the divided yield and future potential.

[percy]

We need to compare like with like. The only option on the NZX is the consistently well performing Turners, with more liquidity and free float than 2CC and they trade on a PE of 10.

For that very reason 2CC will trade at PE's of under 10 for the foreseeable future.

Again, I hope I am wrong.

I am adding to my holding at these levels for the divided yield and future potential.

2CC's business model is a bit different from Turners.
TRA,has auctions,on behalf sales,and buy most of their stock in NZ.From memory they own about half the stock they sell.
2CC buy in Japan WHAT THEY WANT SELL,ie what the NZ market wants.They own all their stock.This is a huge difference to TRA just taking what they are offered.
Over half of 2CC's sales are Electric or Hybrids [52%].TRA's about 15%.
From memory 2CC's stock turns are about 2 to 3 times better than TRA's.

[Rawz]

We need to compare like with like. The only option on the NZX is the consistently well performing Turners, with more liquidity and free float than 2CC and they trade on a PE of 10.

For that very reason 2CC will trade at PE's of under 10 for the foreseeable future.

Again, I hope I am wrong.

I am adding to my holding at these levels for the divided yield and future potential.

When i check the records on ASB Turners P/E has historically been well above 10 PE.

Year	PE
Mar-15	17.5
Mar-16	12.5
Mar-17	14.4
Mar-18	13.4
Mar-19	10.9
Mar-20	15.1
Mar-21	12.9
Mar-22	10.7
Mar-23	10.3

[Jaa]

It's not just Turners, CMO also trades on a PE of 10 and a div yield of 9%.

All 3 are cheap to me, I think the whole sector needs an upgrade.

[Sideshow Bob]

CFO buying in at current levels

http://nzx-prod-s7fsd7f98s.s3-websit...345/404363.pdf

[Rawz]

great endorsement

[silverblizzard888]

CFO buying in at current levels

http://nzx-prod-s7fsd7f98s.s3-websit...345/404363.pdf

I saw his order come through that day was wondering who was buying up 70k shares. I guess he couldn't resist the dividend either and must like the numbers present and future too!

[blackcap]

I saw his order come through that day was wondering who was buying up 70k shares. I guess he couldn't resist the dividend either and must like the numbers present and future too!

Very good to see the new CFO is on board as well. That is the CEO and CFO now buying not inconsequential numbers of shares. This is a sign of confidence.

[percy]

Very good to see the new CFO is on board as well. That is the CEO and CFO now buying not inconsequential numbers of shares. This is a sign of confidence.

Very positive having both CEO and CFO buying on market.

[silverblizzard888]

Its official David Sena now holds 75.924% of the company or 34,586,927 out of 45,554,500 shares. David has now become goliath.

https://www.nzx.com/announcements/419351