2CC - 2 Cheap Cars Group

[Rawz]

As funny as it sounds, i hope is Sena selling.. just to bring some more liquidity to the stock

[blackcap]

As funny as it sounds, i hope is Sena selling.. just to bring some more liquidity to the stock

I think it may well be. Who else would have the 1million shares to sell. Only 2 other parties. So there is a good chance that it is Sena.

[percy]

there we go, $300k offmarket done @ 80cps

Good liquidity for an illiquid stock .

[Bev73]

if they pay another 5.7cent divvy in June this is trading on a 14% div yield. Highest on the NZX?

But will they pay out a good dividend in June? Can they afford to double their best historical dividends, would it be prudent?

On NZX site historic dividends show as -
Jun 21 5.04c+1.96c
Dec 21 1.6c+.622c
Jun22 .63c+.245c
Dec 22 NIL
June 23 NIL
Dec23 4.16c+1.618c


Company's quote in latest financial accounts -
"In accordance with its policy, the Board of Directors is very pleased to declare a HY24 net interim dividend at 60% of underlying NPAT, which is 5.78 cents per share gross. The record date is 22 November 2023 and the dividend will be paid on 6 December 2023. This represents a gross annualised dividend yield of approximately 16.2% based on the share price of $0.71, (as at 14 November 2023). "

A sceptic might suspect that unusual comment was designed to flush out a major share purchaser. Time will tell.

[percy]

From their interim report 15/11/2023


Total net operating cash flow improved to $6.2m, up from $4.6m.

The Company has cash of $6.1m, no net debt and total equity of $19.0m.

Outlook

Following the strong finish to the half year, and a pleasing October result with continued strong margins, the Company is increasing FY24 net profit after tax (NPAT) guidance to be above $6.8m, up from between $5.2m and $5.7m as previously communicated in September.

And as per my post #645 on 06-01-2024 on this thread.
NZ Used Car Sales.
December sales were unusually high at 12,806 and the second highest month in 21 months.
Good for 2CC and Turners.

.

[Bev73]

Sounds good Percy. I stand corrected.

[Rawz]

The other thing to consider will looking at the past is they were self funding their finance book. Now they have gone back to the traditional broker finance model there isn’t really a big need for the surplus cash.

[percy]

Trading a bit thin currently.
Gone from sellers having to go down ,to buyers having to go up.
Am hopeful for a trading update.

[blackcap]

Trading a bit thin currently.
Gone from sellers having to go down ,to buyers having to go up.
Am hopeful for a trading update.

So am I. You would think they should have to provide one after a few months. Either tracking ahead or behind, but anything outside of 10% variance would surely be material?

[Rawz]

I was one of the sellers having to go down. Very sad to be letting go of some 2CC shares as i think they are dirt cheap right now. But i was way overweight as i have mentioned and wanted to buy some FND.asx