tol1 Posted April 24, 2018 Share Posted April 24, 2018 AA is a UK-based insurance company that offers breakdown cover, roadmaps, motoring advice, car insurance. The stock was beaten down due to the i) high net leverage as the company was PE owned prior to the floating, ii) dismissal of the chairman for gross misconduct and iii) profit warning including a divi cut in Feb. Share px was 400 at the peak in Apr 2015 and went all the way to 80 recently and since has gone up to 140. Anyone been invested in the name and keen to share thoughts? Link to comment Share on other sites More sharing options...
ukvalueinvestment Posted April 24, 2018 Share Posted April 24, 2018 Massively leveraged, and the long term trends are against it. Cars are getting more reliable, there are fewer crashes (those trends will only accelerate), the membership % vs driving population is falling. All sorts of shady sales practices. Low renewal rates. I don't like it. Link to comment Share on other sites More sharing options...
tol1 Posted April 25, 2018 Author Share Posted April 25, 2018 Massively leveraged, and the long term trends are against it. Cars are getting more reliable, there are fewer crashes (those trends will only accelerate), the membership % vs driving population is falling. All sorts of shady sales practices. Low renewal rates. I don't like it. Can you elaborate on shady sale practices? Renewal rates have been decent, in fact. Link to comment Share on other sites More sharing options...
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