Vertu Motors Share Discussion Threads

[mortimer7] 02/9/2016 09:09

FWIW, flagged as a buy in The Times today

[mortimer7] 01/9/2016 14:04

smicker - I acknowledge your point on revenue & profits. However VTU have increased EPS & ROCE over the last 4 years, and the UK Motor retail listed co's have been in a "landgrab" scenario for a while.

[paleje] 01/9/2016 10:53

IC had a brief morning comment on them:-

Vertu Motors (VTU) issued a pre-close statement today, confirming that profitability for the year remains ahead of FY2015, although bosses there say private new car registrations have continued to soften since April 2016. The strongest growth continues to be found in the commercial and fleet divisions, and the group believes the macroeconomic backdrop - specifically low interest rates and high levels of employment should work in its favour. However, it admits weak exchange rates could affect manufacturer decisions around pricing.

[loafingchard] 01/9/2016 10:17

Taken an initial stake here this morning, update reads okay to me.

[smicker] 01/9/2016 10:13

Record revenues and profits are to be expected where a company is continually raising new money and buying these in surely. We're getting a bigger business but being diluted as it grows. What about acquisitions via cash generated in the business?

[mortimer7] 01/9/2016 09:52

Liberum Capital reiterated their buy rating this morning with a 100p target.
Accepted, they're "in house", but still good to see.
Also, pleased with todays update & specifically the words in caps below which I think is definitely being overlooked in terms of the current share price:-

"The Board expects that the Group's full year results will be in line with market expectations WITH RECORD REVENUES AND PROFITS"

[daddy2010] 01/9/2016 09:18

I agree also add am expecting a steady rise in the next few weeks to at least 60p (even at this price they will still be at a massive discount to the broader retail sector).A nice quite board is also a good sign as the herd is yet to arrive ?Nice to see the shares finally break the 50p barrier this morning.D

[seball] 01/9/2016 09:04

Agree this should be trading over 60p. All this fear on Brexit was overblown. Slow and steady rise will suit me.

[sphere25] 01/9/2016 07:23

- Trading in line
- No change in consumer behaviour
- Favourable economic backdrop

And still around 20% off pre-brexit plunge. Time for Mr Market to gradually bid these back up to that 60 mark.

[eggbaconandbubble] 01/9/2016 07:17

I'm surprised, no comments on the trading update RNS on here so far.
Did I miss some big party last night???
Update seems to me all as expected BWTFDIK.
And still surprised these aren't rallying more.

[tiggertiger] 30/8/2016 00:14

Britain is set for a car-buying boom as thousands of motorists move to beat 'flawed' tax changes which will penalise drivers who go green and reward owners of gas-guzzlers, the AA warns today.It predicts a six month car-buying frenzy will start as drivers move to snap up cars with the new half-yearly '66' car registration plates - which begin this week on September 1.That way, buyers will avoid the controversial car-tax reforms that kick in next April - a month after the introduction of the six-monthly '17 plate' in March.

[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 .