Vertu Motors Share Discussion Threads

[daddy2010] 29/8/2016 19:40

144m in property - that was when it was last value over 3 years ago. It should be higher now. Tangible nav around 40p with offers considerable downside protection. We just need the market to wake up and hopefully the September update will help.D

[bolador] 26/8/2016 17:51

Market cap 194m, net cash 23m, property 144m and a nice motor business thrown in !

[jaf111] 25/8/2016 21:10

Daddy2010 Some valid points.....certainly aware of the extra risk on MMH but if they can deliver (2017 broker forecast of almost 30p eps) then they are very cheap....clearly there has been a slowdown in the market but I do not think the sector is set for a decline. As you note CAMB has an excellent record...and I hope / expect the Trading Update due in the next 2-3 weeks to be positive. FYI I do not read Investors Chronicle....so interested to hear that they are punting them. As far as I am aware though, their record is pretty mixed!

[daddy2010] 24/8/2016 19:50

Jaf,Why are you more attracted to these - because they were punted in the chronic investor? Marshalls gearing (debt strategy) worry me. Cambria is a quality operator with double the roce of Vertu but management are less experienced and have it all to do to prove they can deliver the potential returns on capital employed. The trading spread is also wide as the shares are quite illiquid. That said If cambria can deliver (and I know liberum like them) these also offer massive upside. Vertu are the quality operator imho but the market fears more equity dilution in the future (as management have preferred equity issuance in the past to debt funding for expansion) which needs management clarity at the next update before we see a big re rating. Cambria is a decent operator but have more execution risk (but greater upside) if management can deliver. I would however be careful of Marshalls as these will get hammered in a market downturn as they don't have the asset underpinning. Vertu on the other hand has a tangible nav of nearly 40p ( and that includes a conservative property valuationwhich hasn't been revalued for several years).Dyor of courseD

[jaf111] 24/8/2016 18:57

Daddy2010 - "These are now the cheapest in the car retail sector across multiple valuation measures....." I would be interested to see the evidence for this.....I have been very keen on the sector for some time (definitely agree the whole sector remains very cheap) but at the moment my eye has been drawn more to Cambria and Marshall Motors than to Vertu.....

[daddy2010] 24/8/2016 17:49

All good things come to those that wait Ddz. Not long to wait until the next trading update which I'm expecting to be very strong. Some one appears to be stake building at 49p and following Lookers 30% increase in recent weeks who can blame them. These are now the cheapest in the car retail sector across multiple valuation measures and are now trading at a 30% discount to the wider retail sector ( which like the house building sector is starting to rerate as brexit fears prove overdone ) and also have one of the highest quality management teams in the business. Note how cheap vertus recent acquistions of premium dealerships have been (around 5 to 6x earnings) compared to those being applauded by lookers (which have been done on 9 to 10x earnings). It's nice on quite on this board but won't be when the crowd arrives. Expecting at least 60-65p near term and even then the shares remain cheap!Ultimately I would like to see management move Vertu from aim to the main market where the quality of this business will be more appreciated.D

[miikke] 24/8/2016 10:44

Interesting times in this sector

[ddz6006] 24/8/2016 10:22

They seem to be getting left behind on the acquisition/consolidation front, any thought?

[daddy2010] 23/8/2016 04:41

Second hand car sales booming according to latest SMMT report which is obviously great news for Vertuhttp://www.bbc.co.uk/news/business-37154928D

[eggbaconandbubble] 22/8/2016 15:30

Trading statement due end of month

[gucci] 22/8/2016 11:07

breaking out

[farmsted] 15/8/2016 10:11

Good to see that with 2mil share being sold this morning the share price is still Blue

[woodwards26] 09/8/2016 11:09

Grahamburn mostly new car stock isn't paid for till it's sold so it won't be a problem.Car stocks are kept on regional compounds and nominally attached to a dealer.With good management a dealer should not have too much money in new stock .

[joe say] 04/8/2016 08:35

You say a tiny increase but the reality is this represents very strong demand - don't forget we've had month after month of growth so any growth now is still excellent

[mortimer7] 04/8/2016 08:11

Today SMMT have released their monthly new car registration figures for the month of July. Which in the context of the british economy after the "brexit" vote are quite a significant indicator of sentiment. Pleasingly for the motor retailers such as VTU the figures show an increase (albeit tiny) vs July last year of 0.1% with total registrations of 178,523. SMMT Commented "With low interest rates, attractive finance options and exciting new models coming to the showrooms, the market still has lots to offer customers.”

[grahamburn] 02/8/2016 15:45

Brief news item in yesterday's Times which indicated that many manufacturers are effectively forcing retailers to take more vehicles into stock in order to meet their "nominal sales" targets. If correct that is not that good for the retailers' balance sheets or cash flow if the extra stock cannot be shifted out of the showrooms.

[joe say] 02/8/2016 07:55

Isn't a car deemed as a necessity nowadays?

[mortimer7] 02/8/2016 07:37

Interesting commentary on the UK new car market from Pendragons June interims today - relevant to VTU & other motor retailers: "Approximately 75% of all UK retail cars retailed in the UK are now sold with finance agreements in place which we believe should help to underpin the stability in the new car market as these customers typically move on to new financing arrangements when purchasing their next car"

[cockerhoop] 28/7/2016 07:25

Interesting Brexit effect? hTTps://www.linkedin.com/pulse/does-brexit-have-green-white-orange-lining-uk-car-marc-thornborough?trk=prof-post

[daddy2010] 27/7/2016 13:45

Because it's massively oversold and screaming cheap!!D

[zho] 27/7/2016 11:14

2nd quarter GDP growth better than expected? http://www.bbc.co.uk/news/business-36903164

[shahodud] 27/7/2016 10:59

Any ideas why this is going up today?

[zoolook] 20/7/2016 15:53

Down on the day. Beggars belief