Vertu Motors Share Discussion Threads

[kmann] 01/6/2013 11:50

The views from st0k0pedias's expectingValue, suggests VTU currently significantly undervalued compared to its peer's .... but I think we already knew that :-)

Car Dealerships (VTU, CAMB, LOOK, PDG), Part 4: Conclusion & decisions

"car sales (and other car transactions - remember they make a lot of money on used) will probably rise in the coming years. They're still significantly down on pre-recession levels, which granted may represent an unsustainable high, but if we expect any sort of pent-up demand from years of weak consumer confidence - which seems reasonable - it's easy to be bullish."

"Vertu is my favourite stock of the four covered here, and it's the most classically 'value' in its investment methodology - underlying strength hidden by obfuscating factors like the acquisitions, cheap relative to book value, conservative balance sheet. I like Cambria for many of the same reasons, but Vertu strikes me as both having better characteristics with respect to what I've just said, and not having the off-putting director share ownership, at almost 50%, that Cambria do."

[smicker] 01/6/2013 10:04

http://www.stockpedia.co.uk/content/car-dealerships-vtu-camb-look-pdg-part-4-conclusion-decisions-73778/

very interesting series

[kmann] 31/5/2013 12:38

Looks like a new trend of car purchases about to begin and continue, renewal of old cars and renewed confidence in the economy ...

European car sales in first rise for 18 months

[smicker] 22/5/2013 00:31

some comment

[alter ego] 21/5/2013 16:41

The IC have published a tip update for on line subscribers repeating their "buy" advice. They say the forecast p/e of 12 is "modest".

[mortimer7] 21/5/2013 15:20

SP just ticked up 0.25p, so market seems to have no problem with the placing.
Also Espirito Santo have reiterated their buy view at todays SP, but with an increased target of 63p.

[mortimer7] 21/5/2013 10:07

Another RNS regarding the placing : the Directors have subscribed for £150k worth of shares.

[mortimer7] 21/5/2013 09:58

The clear reason for VTU success has been their fund raising strategy & business model. Other dealerships were mired down in traditional bank funding for their businesses & stock at high interest rates and in a sector that has been "no go" for the banks for 5 years, so no chance of further development even for the successful ones. This is why VTU have come from nowhere to be the 7th (I think) largest motor group in the UK.

[stevemarkus] 21/5/2013 09:53

I agree here zoolook and alter ego, the discount is not huge, especially for such a chunky placing. They'll do well to get it away there and it bodes well for the future. The company itself is performing well as we can see from the results this morning, generating plenty of cash, trimming the non-core parts and adding where they can see potential.

The acquisition itself looks good as well. Landrover franchises always seem to do well. I'd definitely prefer to see the company well funded rather than take on a load of debt, albeit at the cost of a slight dilution.

Cheers,
Steve.

[alter ego] 21/5/2013 09:47

For an AIM stock, raising money via a placing is cheap and quick. There are far worse crimes against shareholders to get upset about IMO.

[zoolook] 21/5/2013 09:44

Open to alternative views but a 7.3% discount doesn't sound like a huge discount and is a price well above of what it traded for most of last year and could of course dip below again.

Re the purchase £14m of assets and £3.9m of profit for £31m sounds a very good deal.

[this_is_me] 21/5/2013 09:27

I totally agree; private Investors frozen out from discounted shares again.

[wjccghcc] 21/5/2013 09:18

Yes but for such a large fundraising, shareholders ought to be allowed to participate.

[alter ego] 21/5/2013 09:05

Totally agree, it's a buy and build strategy, VTU need money to fund the acquisition. All logical and appropriate given that's what they do and they have shown they can do it well.
If it was to prop up an ailing company it would be different but it's not and it looks like the market sees it that way too.

[mortimer7] 21/5/2013 08:58

The fund raising is primarily to fund the acquisition of 3 profit making Land Rover dealerships. Land Rover dealerships are highly sought after over the last 3 or 4 years. Vertu's strategy has been to cherry pick smaller motor dealers businesses, & absorb them in to the group. Usually they become immediately more profitable due to centralised cost savings.
I'm not at all concerned by the fund raising, it's part of their stated strategy and is fundamental to the company having grown to where it is over the relatively short period of time, despite the general economy.

[beckaroo] 21/5/2013 08:48

Its a pity about the fundraising because the results and outlook are superb.

'The Group has traded significantly ahead of the prior year and our budget in March and April reflecting the stronger new car market and increased contribution from recently acquired dealerships.'

[r ball] 21/5/2013 08:42

Quite. Avoid for now.

[this_is_me] 21/5/2013 08:31

I was thinking of investing but the company clearly are giving their best mates a huge number of shares at a discount many of which will likely be dumped on the market at a profit as soon as they can.

[mortimer7] 08/5/2013 16:35

SP up 4.43% to 41.25p today. Lots of transactions, mostly buying. So I would assume good news is on it's way. Results due 21st May & possibly an update on March performance.

[johnv] 08/5/2013 14:50

This was tipped last month at 41p by momentum investor tipsheet. buy 2-3yr view.

[18bt] 08/5/2013 09:52

Vertu have to be benefitting from the upturn in sales

[smicker] 08/5/2013 08:27

Each month the SMMT release the number of cars sold for the previous month.



There was a 14% increase over last April and they have increased their forecast for the year

[alter ego] 08/5/2013 07:45

what figures? Results not due til 21/5 afaik

[smicker] 07/5/2013 17:03

Great figures today. Nice to see we have a large shareholder accumulating also.