2CC - 2 Cheap Cars Group

[Left Field]

......mine and Lorriana's kids and grandkids as well as many other posters on here with their kids will probably inherit far more than they really deserve. 

I don't think you can presume to speak for other posters in this respect.

Giving kids & grandkids a head start in life is the sole motivation for much  investing.  Just saying.

[Basil]

Fair enough and good for you.  What I said probably came across the wrong way.  What I really meant to say to Percy and Winner is its not silly to enjoy some of your money too.   

The interesting question is will 80 cents be enough ?  With them making $2m in the second half of FY26 and $600K a month net profit after tax since March with the more reasonable carbon regime and Sylvia park cranking along is somewhere around $6m on the cards ?.  While its probably unreasonable for a straight extrapolation of recent months trading $600K x 12 = $7.2m NPAT...suppose we figure on $4.5m being a very conservative new baseline, that's 10 cps.

So David Sena only wants to pay a PE of 8 on baseline current years earnings to takeover the company.  Consider also there's saving in listing and compliance fees with privatization, its seems insufficient. especially if recent trading continues.

A fair baseline in my opinion would be 10 times current year baseline earnings based on $4.5m or 10 cents per share.  $1 might get this over the line.  Not sure about 80 cents.  I reckon that's a very cheeky lowball offer.

[lorraina]

fROM THE LATEST ANNUAL REPORT;
FY27
PRIORITIES
The Group enters FY27 with strong early trading
momentum and a continued focus on disciplined
execution, operational efficiency, direct-to-consumer
marketing, and balance sheet strength.
Looking ahead, 2 Cheap Cars is well positioned to benefit from
FY26 investments. The Sylvia Park branch will provide a full-year
contribution in FY27.
We are also strengthening our operating platform, with an increased
focus on Christchurch, including the establishment of dedicated
refurbishment capacity and additional operational leadership in
the region. In Auckland, we are rebalancing internal and external
compliance and refurbishment activity through the hub to improve
efficiency, control, and speed to market.
Further opportunities exist through digital capability, increased
own-channel lead generation, continued finance and insurance
contributions, and disciplined inventory management. The company
is also exploring further network opportunities to support future
volume growth and customer reach.

Perhaps the $0.06mil  NPAT per month will be exceeded.? NB $0.06 per month is $7.2 mil for the year.
Full year NPAT of $6mil would be EPS of 13 cps..PE of 8 would give a share price of $1.04
Full year NPAT of $7.5mil would be EPS of 16.5..PE of 8 would give a share price of $1.32
Then we must ask ourselves whether a PE of 8 is sensible.10 is a nicer number.?...lol

[Basil]

As you suggest lorriana, the independent report will make for interesting reading.  I think shareholders should hold out for an increased price.

[lorraina]

fROM THE LATEST ANNUAL REPORT;
FY27
PRIORITIES
The Group enters FY27 with strong early trading
momentum and a continued focus on disciplined
execution, operational efficiency, direct-to-consumer
marketing, and balance sheet strength.
Looking ahead, 2 Cheap Cars is well positioned to benefit from
FY26 investments. The Sylvia Park branch will provide a full-year
contribution in FY27.
We are also strengthening our operating platform, with an increased
focus on Christchurch, including the establishment of dedicated
refurbishment capacity and additional operational leadership in
the region. In Auckland, we are rebalancing internal and external
compliance and refurbishment activity through the hub to improve
efficiency, control, and speed to market.
Further opportunities exist through digital capability, increased
own-channel lead generation, continued finance and insurance
contributions, and disciplined inventory management. The company
is also exploring further network opportunities to support future
volume growth and customer reach.

[Basil]

Disc: I've put my money where my mouth is and bought 186,000 shares yesterday at an average of 78.5 cps which makes me the 12th largest shareholder in the top 20.  I think 80 cents is egregiously low and won't accept anything under $1.00.  Looking forward to reading the independent report.

[Otago K]

Disc: I've put my money where my mouth is and bought 186,000 shares yesterday at an average of 78.5 cps which makes me the 12th largest shareholder in the top 20.  I think 80 cents is egregiously low and won't accept anything under $1.00.  Looking forward to reading the independent report.

Interesting, I've been and seen some posting of the Beagle on the other site and see some of your thinking and perspective. Personally thanks if it comes to pass that you've mopped up some half a percent of the issued shares that would have chosen to readily accept the 80c; that plus lorraina and his missuses 2.8%, plus perhaps ACC 2.7%, might get closer to the 10% of the shares looking beyond the initial offer, thus blocking the 90% acceptance being rushed toward.

Feel it has merit, even if somewhat hypocritical when personally I'm looking to holdout on accepting, or selling on market my few thousand shareholding as I had chosen in the past for WHS, and desire I had with BRW.

[Left Field]

Disc: I've put my money where my mouth is and bought 186,000 shares yesterday at an average of 78.5 cps which makes me the 12th largest shareholder in the top 20.  I think 80 cents is egregiously low and won't accept anything under $1.00.  Looking forward to reading the independent report.

Crikey! Has the self proclaimed dividend hound lost his mind and suddenly become a share trader chasing short term capital gains?

Grab your popcorn, sit back and watch this space. David Sena versus Basil the Beagle.

One thing for sure, outside entry and long term holder, Percy/Lorriana will be a sure winner . Well done Percy.

Interesting times ahead. GLH's

[Dolcile]

Really keen to see how this plays out - good luck all.

[Basil]

Interesting, I've been and seen some posting of the Beagle on the other site and see some of your thinking and perspective. Personally thanks if it comes to pass that you've mopped up some half a percent of the issued shares that would have chosen to readily accept the 80c; that plus lorraina and his missuses 2.8%, plus perhaps ACC 2.7%, might get closer to the 10% of the shares looking beyond the initial offer, thus blocking the 90% acceptance being rushed toward.

I think David Sena is really going to struggle to get to 90% at 80 cents.