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AA - Debts leave shares on PE of 1.7

May 2020

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:
  • AA.
  • Price:
  • 24p
As I made my rare journey to the office at 6.30am on Friday,  I couldn’t help but notice the number of cars on the road. Later that day I was speaking to the AA (AA.; 24p), the eponymous roadside recovery business, and it seems there had been 8,000 breakdowns a day that week with previous weeks seeing 6,000 a day. The AA is providing free breakdown cover to NHS staff and ambulances but these figures still suggest the economymight be re-starting. I will perhaps write more in a future issue but shares in AA look a speculative flutter. Despite having a trusted brand, market leading positions with a high barrier to entry, recurring revenues and fairly predictable cash flows, the forecast pretax profit of £116m/eps ...

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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.

All material on this website is protected by copyright. You may use Information retrieved from the www.scsw.co.uk website for your own personal non-commercial use which means that you may not sell or copy this information to any third party without prior written consent. ISSN 1358-183X

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