Vertu Motors Share Discussion Threads

[hybrasil] 06/7/2016 07:34

You are all missing the point.


The sterling euro rate means a jump in car prices that Joe public wont be able for.

[daddy2010] 05/7/2016 16:41

I agree several but it's hard to fight the market when it's in this mood. Saw my paper loss on this rise another 6k today.Tomorrow's another dayD

[seball] 05/7/2016 15:31

Looks like weak holder selling out. Great opportunity here as it's a great business with fantastic management. Once done this will rise strongly. Strong Buy at these levels imo.

[darnoc64] 05/7/2016 15:19

What the hell is going on here! This is ridiculous!!

[seball] 05/7/2016 14:39

Under 40p to Buy. I'm following directors and buying. Strong Buy imo

[daddy2010] 02/7/2016 20:16

Lookers nim is around 2.4% but a very different business. Much more reliant on car sales rather than more profitable aftermarket. Their price to book value is also around 1.4. Vertus is 0.7!!

[essentialinvestor] 02/7/2016 10:42

Ed, would you happen to know the Lookers comparative margins?, TIA.

[daddy2010] 02/7/2016 08:39

Thanks Ed. we all need a little luck

[coolen] 01/7/2016 21:45

Recent slide may be linked to Miton having to trim their open-ended fund after the high-profile managers were both head-hunted last month.

[ed 123] 01/7/2016 18:11

Good luck, D. :-)

[daddy2010] 01/7/2016 16:50

Yes Ed. Well aware of the margin and it's discount relative to inchcape and Pendragon et al but that is exactly the point. This is a franchise turnaround margin expansion story and I have every faith that the management will deliver. If Vertu traded at a normalised sector margin or even doubled the margin to say 2% as the benefits of longer term service contracts and franchise efficiencies filter through to the business they will be a lot higher than 42pThis is sell side case behind Liberum target price of 100p. I suspect given the short term uncertainty and euro movements the truth will be somewhere in the middle.D

[zoolook] 01/7/2016 16:26

Bought more today. Now my largest holding. Massive asset backing, Director buying and even the very well covered dividend gives a reasonable yield now.

[ed 123] 01/7/2016 16:14

Hmmm .... I'd be careful.

In Vertu's last year accounts its pre-tax profit margin was only 1.07%.

If the car sales/servicing market hits a downturn and margins are squeezed by the competition, other listed car dealers (eg. Inchcape with its pre-tax margin of 3.8%) will be less impacted.

[daddy2010] 01/7/2016 14:25

I agree. Remember TANGIBLE book value (property and cash) is at least 38.3p so your getting a hell of a lot thrown in for free!! Remember it's the high margin and sticky after sales business that has been driving profits (40% of Profits) not the new car market (22% of Profits) which has arguably peaked. Management are highly respected in the motor trade and their turnaround skills are only just starting to bare fruit (dealerships can take 3 years to turn around and it was about 3 years ago when the turnaround strategy for poor franchises was implemented). No wonder the directors are buying at these very oversold levelsD

[seball] 01/7/2016 12:00

Oversold due a bounce to 50p imo

[ed 123] 01/7/2016 07:22

Another director purchase, a flurry of early trades, but it's apparent that the seller is still active here.

As ever, time will tell. Who was right seller or buyer?

Watching but not holding.

[zoolook] 27/6/2016 10:43

If not they should get a room

[ed 123] 27/6/2016 09:10

MRF/mrf

Are you the same person?

[essentialinvestor] 27/6/2016 09:09

Great call, well done again.

Just looking at some UK cyclicals this AM and some of the drops are jaw dropping.

[my retirement fund] 27/6/2016 08:45

EI remember this post ? .......

envirovision - 05 Mar 2015 - 08:17:42 - 717 of 1063
Smicker, just seen your post. No I was suggesting a large holder had simply hedged their position against the then share price, so if the share were or needed to fall someway, they would have locked in their value to their investment.

People often do this in advance of fund raising. Just happened on CPX I think. CPX have just announced a massive placing and so I believe someone took out a derivative much higher up to pay for their new shares in the placing, effectively locking in profits (in in CPX case, stopping them from being watered down).

Is there any chance of a placing here for further fundraising in the near future?

I know they like acquisitions in past.

EI thanks for your reply

[essentialinvestor] 26/6/2016 19:49

mrf, nearly got pounded on INCH, well in % terms as it was a very small
position.
Closed my SL. and INCH trades pre referendum result as did not like how
close the polling looked, still expected a Remain win though,
we know what happened next.