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Authoritative Independent Monthly Share Selections Using Technical & Fundamental Analysis

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Auto Trader - Shares hit new high

January 2016

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:
  • 422p
The shares have enjoyed a fabulous run to a new high of 437.5p following interims that beat expectations. Revenues rose 8% to £138.2m while operating profit increased 17% to £83m. Net debt was £457m, equal to 2.7x EBITDA.The strong growth from Auto Trader, which owns the UK’s largest online marketplace for second hand cars, reflected a 9% increase in average revenue per retailer to £1,347. Improved levels of stock accounted for 39% of the rise as average vehicle stock listings increased by 26,000 to 508,000 (H1 2015: 482,000), reflecting both market buoyancy and the structural switch by retailers to advertise online. Price increases accounted for 27%, upselling 20% and cross-selling of retailing soluti ...

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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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