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Authoritative Independent Monthly Share Selections Using Technical & Fundamental Analysis

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Auto Trader

February 2021

Investing in shares may lose you all or some of your money. Past performance is no indication of future performance. Some of the shares recommended here may be small company shares, which can be relatively illiquid and hard to trade and this makes such shares more risky than other investments.

  • Epic Code:
  • AUTO
  • Price:
  • 566p
The shares climbed towards £6 after Auto Trader, the UK’s largest online digital automotive marketplace, announced that trading in the third quarter (October – December) was strong with visits to its marketplace 20% above prior year levels. Despite this positive momentum, its policy to be free for customers in December 2020 and February 2021 as a goodwill gesture due to the third lock-down mean it will post an operating loss of £5-£7m in each of those months. Nevertheless its balance sheet remains strong with drawing of just £45m on its £400m revolving credit facility. A quality business that should enjoy a consumer led rebound and take market share from weaker rivals in 2021. I am ...

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With small companies there is an above average degree of risk compared to buying blue chips. Please be aware that we have not assessed the suitability of any of these investments for you. The newsletter simply states a personal view and diarises the editor’s investment decisions. Please speak to your stockbroker or other qualified individual to ascertain whether any of these companies mentioned would form useful additions to your own portfolios. Past performance is no indication of future success.

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