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Volvere Share Discussion Threads
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|Nice £20,000 buy at 534p today. You can only buy a maximum 2k shares at 539.9p online at present, whereas you can sell 3k at a small premium to the bid, so quite tight.|
|Cheers martinthebrave, good to see more people finally noticing!
I believe fair value is some way north of 785p, but that's a good starting point.|
|Graham Neary newsletter stock pick of the week - may have accounted for todays rise:
Stock Tip of the Week: Volvere Plc (VLE.L)
Firstly, the elephant in the room is that this is an investment company. Most stock-picking investors (myself included) prefer to find operating companies - otherwise we would have bought index or mutual funds like everybody else. However, I'm willing to make an exception in the case of the turnaround specialist Volvere.
Since formation in 2002, Volvere has achieved an astonishing compound annual NAV growth rate of 15%. The Lander brothers are founding directors of the company and continue to serve as CEO and COO/CFO (find a CEO interview at this link).
How many hedge fund or mutual fund managers do you know who have achieved returns of 15% or more, over such a long timeframe, and without using leverage?
The stock market doesn't seem to care about Volvere's fantastic track record.
At the company's interim results to June 2016, NAV climbed to 576p per share. Based on the company's current offer price of 530p, this is still an 8% discount to NAV (this excludes any gains in value since then).
And since the company's three operating subsidiaries are privately held and consolidated on Volvere's balance sheet, the capital value created when their performance improves does not immediately show up in Volvere's NAV. It only shows up when a business is eventually sold.
To get a sense of how much hidden value might be in Volvere's NAV, one needs only consider that the group's £24.7 million of net assets includes £18.5 million of cash and securities. But its largest operating subsidiary earned £1.6 million in profit before tax and group charges in 2015.
If Volvere's operating subsidiaries were awarded a normal earnings multiple, based on estimates for a weaker 2016 result compared to 2015, and if this was added to Volvere's cash position as at June 2016, I estimate that fair value for Volvere shares would be in the region of 785p.|
|Looks like Shire have a new website. I hesitate to use the word updated.......as you'll see, no expense spared!
|And to you Melf.
The real spread online is 520p-540p, so slightly better. And we know how quickly VLE can move once you trade....|
|Happy New Year Riv and all holders........25p spread though!|
|New highs now.|
|Good to see a tick up after further buying today.
Online you can sell 5,000 shares at a premium at 515p, but can only buy a maximum 2,000 shares at 529.9p, so things are looking encouraging.|
|Happy New Year VLE'ers.
More buying this morning, with around a net £15,000 bought already. I presume our two usual suspects are still top-slicing into demand. They each went below 3% almost a year ago now with 241k shares between them, so they can't have much if any stock left by now.|
|Another 3 small buys this morning. Perhaps VLE will be tipped for 2017 in the press...otherwise it's presumably someone buying for all the obvious reasons.|
|They've been holding significant cash now for sometime. The Landers are obviously a very patient bunch!|
|I guess they are holding on to cash so as they can move quickly as and when the right deal comes along. The share price has appreciated more or less over time with NAV so even though the price remains at a discount to NAV there doesn't appear to be a huge stock overhang requiring attention.The situation could change if a large holder decides to sell in quantity. Given they don't pay a dividend such an event could find few buyers in the market and result in the company buying back stock.|
|Well somebody has just sold 6..yup 6 whole shares ..so today's trading is really hotting up. I'm not sure why the company isn't buying back shares anymore unless there's just not the volume available to justify the RNS cost?|
|Three small buys in the first 9 minutes of trading today - a frenzy of buying :o))|
|Thanks Riv....although I certainly wouldn't describe Shire as a "people business".|
|VLE have been tipped here as an alternative turnaround specialist to Melrose - it's certainly a lot cheaper, since VLE trades at a discount to NAV, let alone with any of the premium on top for when one or more of the investees are sold:
|virtually a month's volume in a day :-}|
|A busy day - I calculate a net almost 7,000 shares bought today so far, i.e around £37k (the 2.5k looks like the only sell imo).|
|Spooky, I can currently buy a maximum 1,500 shares at 529.9p online.|
|Not sure about the further buying, they won't let you buy any.|
|New highs now - looks like two £8k buys (plus a couple of smaller ones).
Lovely small 10p published spread too (and probably even smaller online). That won't last long with any further buying.|
|A further £8,000 buy has done the trick today.|
|The November issue of AIM Prospector magazine is just out, and includes this positive summary of VLE (these are also the people behind VLE's recent presentation in London):
Volvere is essentially a 2-man (brothers Jonathan and Nick Lander) operation that specialises in turning around either loss-making or marginally profitable companies. The Landers implement their management skill set and sell rehabilitated companies at a profit. Volvere has typically worked on two to three turnarounds at any one time, selling them after three to five years.
Since 2002, IRRs of between 40% and 160% have been achieved upon sale of acquired companies. Accumulated cash accounts for nearly 75% of the NAV. Dividend policy is “no dividend” but Volvere does have a history of share buybacks. The company does not feel any pressure to distribute the cash pile because such liquidity is
required to maintain Volvere’s standing as a capable acquirer with turnaround project vendors.
The operational track record has been rewarded with a share price that has grown at a CAGR of 13% (vs. FTSEAllShare 5.2%) since the 2002 IPO, notwithstanding
the intrinsically high-risk policy of taking on such concentrated investments.
Can they keep up this amazing track record? The shares are valued in the market like a holding company — which Volvere is not — and provides a comfortable (and potentially very rewarding) entry price for disciples of the Lander brothers."|
|Nice to see our Chairman still packs a punch, pleased to see his acquittal http://www.dailystar.co.uk/news/latest-news/560609/David-Buchler-Tottenham-Hotspur-chairman-Jew-assault-Harrods-New-Years-Eve-London|
|It'd soon send it down 20p.|