Vertu Motors Share Discussion Threads

[dennisbergkamp] 16/1/2024 18:23

That’s nuts - shorting here? Hope they get burnt

D

[buffalobillnuts] 16/1/2024 14:12

It's JPMorgan Asset Management, who have a 0.75% short on vtu. I think that is what is holding the share price back. I'm really not sure why they'd think shorting vtu at 67p ish is a good idea! But, Its helping TDR to buy cheap.

[jaf111] 16/1/2024 10:59

Credit to Cinch that they are able to keep buying whilst keeping a lid on the price.
As ever you do wonder why institutions are selling….as previously stated many times the valuation on the car dealers is so low, hence why they have now almost disappeared from the stock market.

Hard to see how Vertu escapes a similar fate….but surely it shouldn’t get sold for less than £1 a share…..clearly the selling institutions don’t agree 🤔🤔🤔

[pj84] 16/1/2024 10:51

Cinch still adding now over 9%.

[jaf111] 12/1/2024 10:52

Indeed ….wonder how much longer we will have to wait before we get a bid from across the pond???

[pj84] 12/1/2024 10:49

Cinch increased from 4% to 6% on 29 Nov and then from 6% to 7% on 12 Dec and are still adding and after crossing 8% today. They clearly see value.

[jaf111] 12/1/2024 10:46

Further 1% purchase by Cinch…..now owns 8.14%……..

[blackhorse23] 12/1/2024 10:00

Sold 50% & bought GNC

[mortimer7] 05/1/2024 09:25

The total for new car regns in the UK for December issued this morning :
141,092 a 9.8% increase on Dec 2022 total of 128,462.
The years total for 2023 is 1,903,054 vs 2022 total of 1,614,063.

The annual increase has been due to increased Fleet market sales, apparently largely due to order backlog catch up.

SMMT forecasted a total for 2024 of 1,970,000 in October. They are due to revise that figure this month.

[riverman77] 31/12/2023 12:47

Yes bit of a mystery why VTU has never received a bid - makes me wonder if there's some underlying reason why it's less attractive than the others, although can't see anything obvious. Happy to hold as looks a quality and very cheap business in its own right.

[pj84] 31/12/2023 10:46

Jim Armitage — Vertu Motors

It’s becoming the oldest rumour in the City, but I’m a sucker for a whispered tip in a hotel bar — even if said tipster is a bit of an Arthur Daley. My man in the sheepskin coat tells me that 2024 is the year when car dealer Vertu Motors finally gets taken over.

The company has been left looking distinctly unloved as its peers attract bids. I can’t figure out why, because Vertu seems a well-run business.

This is not a tip without risk, though. Vertu had a horrible profit warning at the start of this month due to falling prices in October and November. Higher interest rates have damaged consumer confidence and made car finance more expensive.

Potential car buyers have hit the brakes and demand might not recover for a while — but if the cost of borrowing falls, as it ought to, then sales volumes could come back and so could Vertu’s share price — even if the bid rumours don’t come true.

[jaf111] 31/12/2023 07:47

One of the 2024 tips in today’s Sunday Times……

[tomtrudgian] 26/12/2023 18:00

Vertu is brilliantly run by their experienced and stable management, including their Chartered Accountant CEO Forrester, and the others from Reg Vardy.

The problems I see are not remotely from a takeover at the present share price. But partially from the oversupply of inevitably low margin new vehicles, and the depreciation of used electric vehicles taken in part exchange.

Servicing and repair revenue may well increase, so where is the main challenge in the medium future, if any?

It may be this: Many years ago I bought into Vertu impressed by so many things, including their management focus on creating scale, and disliking both debt and leaseholds.

It seems likely that the number of UK franchised dealerships will continue to fall, particularly the smaller ones. Vertu have good sites and long mortgages. However looking ahead, will there be any business rationale or need for so very many large sq footage out-of-town franchised dealerships in the future?

Quite possibly, but if not there are few alternative uses. Supermarkets or internet distribution centres are much less in demand this year.

[pj84] 22/12/2023 20:42

Car production 'back on track' after another increase in vehicles built in the UK

Car production is ‘back on track’ after another increase in vehicles built in the UK, according to a new report.

The Society of Motor Manufactures and Traders (SMMT) said production rose 14.8 per cent in November compared with the same month last year. A total of 91,923 cars were built, up 11,832 – the best performance for the month since 2020.

Production for overseas markets was up 15 per cent, driven mainly by the EU, China and Turkey, with Europe accounting for 61 per cent of shipments. The volume of battery electric, plug-in hybrid and hybrid vehicles rose 20 per cent to 35,169 – 38.3 per cent of output.

SMMT chief Mike Hawes said: ‘Production is firmly back on track following tough Covid years and supply chain challenges.

‘With significant investment committed to UK automotive manufacturing, and production volumes increasing, there is renewed confidence in the sector.’

[riverman77] 12/12/2023 10:47

Cinch now increased to 7%

[pj84] 11/12/2023 18:41

With 2 buying albeit small amounts since Friday.

[pj84] 11/12/2023 18:38

But it does suggest the Directors believe the share price drop was an overreaction.

[rabiddog] 11/12/2023 16:32

Yeah, no official bid. Perhaps a few chats at the golf course though lol.

[extrader] 11/12/2023 16:13

Although it also presumably means that there's no 'live' discussions re a possible bid.

[rabiddog] 11/12/2023 16:09

Not huge amount £8.5k but as you say welcome nevertheless.

[pj84] 11/12/2023 16:03

Good to see Directors buying following the profits warning.

[woodwards26] 09/12/2023 14:39

Companies generally lease vehicles it's the leasing companies that have a pill coming their way to take

[sunshine today] 08/12/2023 12:48

oversupply issue, right now, whats its going to be like this time next year as they flood the world market now covid issues are sorted .?

High second prices has prevented a mass hand back of PCP cars over the last two years.

Thats changed.

Be warned