Vertu Motors Share Discussion Threads

[daddy2010] 20/7/2016 07:21

Make that aftersales.... D

[daddy2010] 20/7/2016 07:20

A very positive statement with continuing strong growth in used cars and aftershaves (nearly 70% of sales) more than offsetting the expected slow down in new car sales. All in line with expectations. Good news on further margin enhancements and integrations progressing well. Reassuring take on brexit impact and a further update planned in Sept. Nice to have a management team that keep their investors regularly updated.Steady as she goes.....D

[daddy2010] 19/7/2016 21:30

I'm expecting another very strong trading update tomorrow with record revenues and profits and sector beating sales growth. Looking for eps of around 6.5p, a 10%+ increase in the dividend, a decent uplift in customers on after sales contracts and a small uptick in operating margins as the impact of refurbished lots and operational efficiencies gain traction. A lot too ask but this great little company has a habit of silencing the doomsters. On the downside, I'm expecting some impact due to currency movements and a lack of forward guidance on the world post brexit (as it's too early to tell) may hold back enthusiasm given the general downbeat sentiment towards consumer stocks.One to buy and lock away for the future.D

[mortimer7] 13/7/2016 08:34

8% uplift yesterday, positive so far today 3.5%.
Marshalls trading update today references Brexit:
"It is too early to assess any impact on the UK motor vehicle market of the result of the UK referendum on EU membership"

[daddy2010] 12/7/2016 14:58

Nice to see that the market is waking up to the value here (at last) with the shares up another 8%. Vertu remains the most undervalued stock I follow in my 'quality basket'. Communisis is also worth a look if your willing to take more risk. asthe balance sheet is not as strong. The market is also sceptical as to whether the management can deliver but with a blue-chip and sticky client base this has the potential for a massive rerating if July's trading update is positive.Renowned small cap investor Richard Griffiths has faith as he has taken his stake above 15% this morning. One to add to your watch listsD

[seball] 09/7/2016 11:29

Yes expecting a rally in share price from these oversold levels next week.

[daddy2010] 09/7/2016 07:54

Hi EdIt was actually a buy as it was a delayed trade from previous days ;-)D

[ed 123] 08/7/2016 22:32

It looks like the 38p seller was active again today. 15:48 hours, 2.6 million shares sold at 37.87p. One of the market makers was making a nice margin on that 2.6 million sale.

[daddy2010] 08/7/2016 19:35

NAV per share is at least 39p. That's the value of the property only which is very conservatively valued with a good chuck of that valued over 3 years ago which provides some cushion against downwards revisions of prices if price collapse (unlikely). They have at least £10m of net cash also. The rest of the business, net stock wtc is on for free.Most after sales revenue is also recurring as it tends to be a condition of pcp contracts which most people use to buy cars these days. These lucrative contacts have increased from 9000 to 90000 (ten fold) in only three years. Margins are also on the rise but still way below the competition hence the scope for further upward revisions as the benefits of economies of scale and investment in premium brands filter through to the bottom line. Plenty to be positive about here.D

[davidosh] 08/7/2016 16:45

Net assets are not necessarily a good indicator as they have been issuing new shares in placings to buy these assets. NAV per share would be far better. The only concern would be if they have been overpaying.

Aftersales are great but not guaranteed and they need to have good systems and staff to keep contact with customers and potential customers moving into their areas of operation. I think they trail Cambria in that respect.

[mortimer7] 08/7/2016 16:21

I originally bought VTU in Feb 2013 when coincidentally the share price was around 40p.
Net Assets for Feb 2013 y/e were around £106mill.
3 years on net assets are virtually double that, as is revenue. Many other fundamentals could be cited to bear out their progress & potential, so I have no real concerns about accumulating at these prices.

[seball] 08/7/2016 16:18

Think this could hit 50p short term as oversold . Good luck all

[alter ego] 08/7/2016 15:34

that's my take too, just hope we are both right as I'm rather overweight VTU

[grahamburn] 08/7/2016 15:30

Think there is more mileage (almost a pun, I guess) with the after sales/servicing side of the business than in new car sales in the short term, though the second hand market may well hold steady - provided there's a continuing supply of these without the automatic supply from trade-ins. The after sales side has a higher margin anyway as well as representing some 40% of total profit.

I do agree, however, that the current sell-off in the share price is over done.

[davidosh] 08/7/2016 15:18

I have been picking these up at the 40p level as I think good value on continued car sales due to low interest rates and the use of PCP to buy them. Cambria are my number one holding but Vertu second in the sector.

Amazing that they are half the price they were just six months ago.

[mortimer7] 08/7/2016 11:17

Found this in Motor Trader which I guess is an extract from the piece eluded to above:

[mortimer7] 08/7/2016 11:14

Therein the answer to who was one of the large buyers yesterday:

[seball] 07/7/2016 16:54

Have you a link for the broker note? Thanks

[daddy2010] 07/7/2016 16:45

Cracking and very detailed 40 page sector review note out from Zeus capital this morning outlining the value. Vertu and cambria are their top picks.Also confirmed my numbers are spot on ;-)A must read for all investors and potential investors here.D

[seball] 07/7/2016 16:31

Yes seller now cleared. We have a buyer also. I expect this to trade over 40p tommorow. Drop in share price overdone. Expect this to trade around 50p level shortly.

[my retirement fund] 07/7/2016 16:27

I meant to add good post Daddt2010, thanks.

[my retirement fund] 07/7/2016 16:25

Hmm seller done then ?

[seball] 07/7/2016 16:22

seller cleared? expect to rise to 42p quickly. Then a steady ride to 50p imo

[mortimer7] 07/7/2016 16:17

12 miilion traded today now, over 3% of the total shares. Around £4.5million.

[seball] 07/7/2016 16:06

AGM also this month so will get a positive update on trading imo.