Hi bensterz,
Interesting to read your thoughts.
I have only been a holder for a short time although have often looked at AMA and always concluded that too much hung on the one person in charge.
So being late to the party might end with the worst hangover, who knows?
I look at the panel-beating world as one of insurance industry bullies squeezing the profits of small sole traders who have no market power. Where I live in rural NSW we have seen the closure of these businesses with the owners saying that the insurers have them by the short and curlies.
So eventually there may well be just a few repairers left as you propose. One would think that customers will at some stage revolt against insurers that fail to provide service. Think coles/woolworths and $1 milk. Insurers need repairers that are economically viable or they will not have a business.
Enter AMA. Big enough for economies of scale and able to stand their ground to maintain profit margins against the GIO's of the world.
So I think AMA has plenty of room to continue to grow. They do other things too remember, bullbars etc., and are obviously looking about for other things that will fit their existing stable.
On the subject of safer cars - severe accidents are good for tow trucks only as they are right-offs, small dings the shopping trolley gets in the car park etc are the bread and butter for panel beaters, where I live 'roos keep them in clover as a lot of the new cars have nothing to hang a roobar onto so more cars are damaged from roos than there used to be with bars preventing panel damage.
Cheers,
AMA Price at posting:
$1.02 Sentiment: Buy Disclosure: Held
