Vertu Motors Share Discussion Threads

[jabers1] 30/9/2021 05:19

Majority of car buyers say they’ll support local dealers

29/09/2021 in Market Insight

Three quarters of car buyers say they are planning to purchase their next vehicle from a local dealer, according to a What Car? study.

A survey of almost 1,200 in market buyers found that 74% were planning to buy locally, while 84% said they believed it was important to support their local showrooms and garages.

More than a third (34%) of buyers told What Car? they would buy their next car from their local dealer even if one further away had the same model for a lower price. The same percentage of respondents were also willing to buy a different spec of vehicle than they initially intended if their local showroom had it in stock.

Steve Huntingford, editor of What Car?, said: “Our previous research has shown that most buyers research their next vehicle online, but there is clearly strong support for local dealers among in-market buyers when it comes to purchasing their next car.

“Convenience is always a reason why buyers prefer to buy local, but our research shows the same buyers also believe it’s important to support their local dealer and are even willing to wait longer or pay slightly more in order to do so.

“At a time when the industry is embracing online sales, this is a reminder of the role local dealers play for motorists, the loyalty this generates and the benefits of nurturing lasting relationships with customers.”

The research found 37% of in-market buyers are looking to purchase in the next four weeks, and 27% are set to buy within the next three months, confirming a steady stream of demand for dealers in the weeks and months ahead.

Despite a surge in lead times for some new models, 56% of in-market buyers told What Car? they would be willing to wait longer for a vehicle to arrive to a local dealer than buying it elsewhere sooner.

[otemple3] 29/9/2021 22:53

Mortimer, whereabouts did you get the date from? I thought it was the 7th but no idea why now....

[tole] 29/9/2021 19:50

https://www.fool.co.uk/investing/2021/09/28/a-top-share-that-could-do-very-well-in-october/My top pick for a share that could do well next month is car dealership Vertu Motors (LSE: VTU). There are several factors combining to make me think that October could be a good month for the stock.A top UK shareThe shares are cheap and have got even cheaper. September was not particularly kind to the Vertu Motors share price. That decline potentially lays the groundwork for a bounce-back in October. On a P/E of six and with much of its value backed by physical property, there could be a good margin of safety with this share.The industry is experiencing exceptional prices, which is a potential ongoing opportunity as semiconductors needed for new cars remain in short supply. This is boosting second hand car values and therefore car dealers like Vertu.According to broker Liberum, sales at Vertu will go from £2.55bn this year to £3.90bn by 2023. That to me looks like very solid top line growth for such a cheap company. The company will also move from a net debt to a net cash position in those years.The group's property, according to the analysts at Liberum, is worth 61p a share. The analysis has an 80p target price. With the shares trading at the time of writing at about 52p, that's a pretty comfortable margin of safety, I feel. I like the management team too. The CEO has been with the company since it was formed. He, along with the chief financial officer (CFO), knows the business and the market inside out and both are well placed to handle the risks facing the car dealership business.On the downside, the market could continue to punish the shares because it sees the company as being in a market in long-term decline. Operating margins are also very slim, leaving relatively little room for error if costs increase.Also, returns on capital aren't particularly high, so compared to other industries this isn't an obviously massively profitable market. Yet Vertu itself is consistently profitable. That's why I may add to my holding.

[mortimer7] 29/9/2021 15:21

Interims due 13/10/2021 this year.

[otemple3] 29/9/2021 10:00

Don't worry, found it

[otemple3] 29/9/2021 09:45

Would you mind posting a link to your tweet as want to share it on another group where we have discussed this

[otemple3] 29/9/2021 09:43

Yeah, agree that is def not true so interesting response....

[loglorry1] 29/9/2021 09:42

That's not quite true. They can leave an order with a broker and they can continue to buy during closed period. The order can be something like pick up £X per day at VWAP+0.5% and the broker will try their best. This is more common than not how it is done and if done this way they can continue via closed period.

Anyway it seems they have decided to halt for a while.

[microscope] 29/9/2021 09:35

Ah fair enough, interims were on 7 October last year

[sellmycarscouk] 29/9/2021 09:12

So I tweeted the CEO and this was his reply. "We are in a close period and so to continue would be illegal".

[otemple3] 28/9/2021 15:03

No, it's not this as the responsibility is delegated to the broker - the board cannot influence it beyond giving the instruction so can continue right up to results

[scooper72] 28/9/2021 15:01

I've noticed a lot of my stocks pulling back over the last week. Particularly those that have made decent gains over recent months. I think people are taking a bit of cash out of their holdings to protect gains and to be ready for possible market corrections.

[daneswooddynamo] 28/9/2021 14:44

Maybe due to close period requirements which I think is one month for half year results

[woodwards26] 28/9/2021 13:45

Yes share is just drifting back has struggled to stay over 50 without the buybacks

[otemple3] 28/9/2021 13:22

I'm still amazed they stopped - makes no sense as they still have lots to buy under the guidance and were buying a fair bit higher a few weeks ago. Baffling!

[microscope] 28/9/2021 11:54

Time to resume buyback I'd like to think

[microscope] 15/9/2021 12:59

I make that not far off a million pounds worth bought back now. Potentially about a third of the way through.

[purplepelmets] 08/9/2021 07:26

buybacks resumed again yesterday, another roughly 100k GBP worth of shares

[mortimer7] 06/9/2021 08:14

SMMT figures published this morning show the total number of new cars registered in the UK in the month of August was 68,033. A 22% reduction on the 87,226 in August 2020.

[purplepelmets] 06/9/2021 06:51

probably from there was no RNS this morning stating we bought back 100k sterling worth of shares on friday, like we had every day last week.?? Although share price strength on friday sure looked like buybacks were on going. maybe a late RNS

[sellmycarscouk] 06/9/2021 06:24

Where have you got the information from??

[boonboon] 06/9/2021 06:17

Looks like you're right, no share buyback today.

[podgyted] 05/9/2021 21:51

Have some sympathy Danesw.

I'm not sure what will happen on Monday and it will be interesting.

But the Brokers TP is 90p on this - whilst TNAV is no longer more than the SP, it's actually not far away. Doesn't particularly sound like a time to definitively cease the BB. Personally think we'll see continual BB's until the interims, when a further one will be announced with the reinstated dividend. Personal view and obviously WDIK.

We'll see.

[daneswooddynamo] 03/9/2021 14:33

Looking rather overbought in short term given it has jumped 50 percent in a month, wouldn’t be surprised to see the buyback programme suspended for a while myself

[finkie] 03/9/2021 13:21

agreed microscope, good company favourable market conditions low pe etc etc I too see 75p+ short term and possibly some M&A action too at some point but that would have to be over 100p for me at that point. GLA