Vertu Motors Share Discussion Threads

[microscope] 04/10/2022 16:18

If you had read announcement you wouldn't need to ask. :) Exercise of options and settlement of tax liability. Simple as....

Clive be careful tomorrow morning, purple pelmets and other aliases will as usual I think appear trying to scare you and others, saying, 'will open at 35, 30p' or whatever takes their fancy, quoting any/all implication of inflation, macro factors, blah, which happens every set of numbers for VTU.

As responsible management it would be more worrying if they didn't mention these things!

Just wants to buy cheap, or is short, or probably both.

Most important thing for me will be to see if TNAV is around 70p.

If it is you don't even need any profit or strong outlook to know that this is (imho!) a screaming buy :)).

First hour is often volatile on results day then settles back to normality, and pm presentation should be positive.

[blackhorse23] 04/10/2022 15:10

Why director sold his 173k shares ? On 17th August ?

[clive7878] 04/10/2022 12:28

Maybe there will be a rush of interest in VTU when results come out tomorrow ???

[tomps2] 03/10/2022 15:54

Vertu Motors (VTU) interim results webinar

Wednesday, 5 October, 2:15pm

Vertu management, Robert Forrester, CEO and Karen Anderson, CFO will present interim results for the six-month period ended 31 August 2022.

Register Here: bit.ly/VTU_interim_webinar

[clive7878] 29/9/2022 21:00

On the financials they say net asset value is 88p per share, a lot better than PDG, and there is the 4% divi.
PDG moved very little on fairly good results, maybe VTU will do the same. Many shares have hit a new low of late.

I believe VTU share price has bottomed out. It hit 38p but quickly rebounded to today price..
On fundamentals the price is beginning to look very good value after hitting 75p early on in the year.
When to buy is the question.

DEC went up today, due to the 10% yield - paying a quarterly dividend
SBRY still slides even though the dividend now is 7%
Although no good having a high dividend if one loses it in downward share price movement.

[sunshine today] 29/9/2022 20:53

The USA leads the way a few months before us.

[sunshine today] 29/9/2022 20:53

The USA leads the way a few months before us.

[pireric] 29/9/2022 19:12

Does it even matter when you are buying the company at a 40% discount to tangible book value. A huge margin of safety and one that could very well get resolved through corporate action. You can buy £1 of net tangible assets for around 60p

Eric

[alter ego] 29/9/2022 16:07

spoke yesterday to my local servicing specialist for BMW cars - said they were very busy. Cars need servicing, usually based on mileage, sometimes elapsed time *mine was brake fluid change". Maybe people will be doing less mileage if fuel prices deter them but a lot of mileage isn't discretionary and a two year service is required even if you've done no miles.

Cars and vans need fixing when something fails or wears out too so that side of VTU's business is unlikely to show the same decline as new vehicle sales might. Second hand vehicle sales may compensate for lower new car sales as well.

My conclusion is that Car dealer Armageddon isn't a near term risk. Just my opinion.

[riverman77] 29/9/2022 15:32

Agree with the last 2 posters - sales may fall but not drop off a cliff. A certain amount of car purchases are non-discretionary, and there is still a backlog of orders caused by ongoing supply disruptions. Aftersales generates the largest part of their profits and this is also largely non-discretionary. They also have a rock solid balance sheet, so even a severe slowdown isn't going to cause any lasting damage.+

[clive7878] 29/9/2022 15:17

What will happen to sales in the next 6 months may not be as bad as people think
VTU share price does appear to have bottomed out at around 42p,
The market is anticipating what could happen in the next 6 months though,
especially if finance borrowing rates rise - will this effect car sales dropping off, profits and the share price.

In fact VTU is holding up well in todays market, but then the fundamentals are very good.
Could be rated as a buy ?

[tradingplaces1] 29/9/2022 14:46

Interesting times, although generally speaking the service department, which usually absorbs around 80% of the overheads of a car dealership, picks up when sales slow as people still need to maintain cars.

Personally I don't think we'll see a drop from a cliff edge, unemployment is still relatively low and people need transport, we'll see some downsizing and people reducing monthly payments, some 2 car families may reduce to 1 but the car market is relatively robust because of our reliance upon mobility.

But I'm no Clairvoyant so for all I know it could all go horribly wrong and we'll see mass housing repossessions and defaults and we'll be back in 2008 all over again!!!! Let's hope not!

[sunshine today] 29/9/2022 14:20

It’s falling like a stone as sales are about to fall of the cliff edge.

Think debt

[tradingplaces1] 29/9/2022 14:08

This stock is just a victim of the current market volatility, just look at Cineworld, on the verge of collapse save for a huge amount of luck and yet this is seeing decent volumes from speculators whilst VTU has dropped significantly, a business that will almost certainly survive this crisis intact!!!

[clive7878] 28/9/2022 21:59

tradingplaces1 - I agree - results are due around the first couple of weeks in October and should be reasonable. Net asset value is said to be 88p per share in the financials. Haven't seen an announcement on results date though. There was a dip in the share price earlier on today, which I missed out on. On fundamentals they do look very good value at todays price.

[daneswooddynamo] 28/9/2022 13:15

Completely agree, am switching some of my pdg into vtu at these levels

[tradingplaces1] 28/9/2022 11:04

Interims are due next week, I think Oct 5th.

Recent energy caps will save businesses money including VTU, this is probably worth a few million so this is a positive and likely to be raised as such next week.

I think you'll see a positive set of numbers probably ahead of forecasts for first 6 months. VTU still without debt so well positioned for both acquisition and share BB so I wouldn't be shocked to see another BB commitment of similar value to last time unless they require cash for large acquisition.

No one knows quite how the economy will respond in the short term and all businesses are likely to caveat their forecasts including VTU who are always conservative in respect to their forecasts.

At today's price, if you can afford to hold, this is exceptional value in my opinion, the fundamentals are solid and the business remains focused on growth with a good execution, plenty of cash, no debt and a NTAV almost twice the current share price. Remember this is just an opinion.

[clive7878] 27/9/2022 14:59

VTU it was said the asset value could be 80p per share, although obviously current share price is based on expected profit over the next 2 years and the current conditions now.

I believe - correct me if I am wrong - the 1/2 year results could come out in October - and they could be - based on PDG - be fairly strong. A car is essential for many people so over the next 6 months one just has to see what happens, the fundamentals do look very good, but can they do well in the current climate?

[otemple3] 27/9/2022 14:23

Does seem like very simplistic economics Clive - it might give you a short term boost but I think the patient requires a long term strategy

[clive7878] 27/9/2022 13:31

People who have a variable rate mortgage and a home, will suffer a double wammy!
Interest rates are expected to be 4.5% by Dec 2022, and 5.75% by June 2023,
mortgage payments could treble, then there is much higher energy costs.

Not sure how this will affect the car market and other spending.
Getting rid of Boris and not appointing Sunak,
could be the biggest mistake the Conservative have ever made,
unless Liz Truss can pull a rabbit out of the hat.
One poll have Labour 17 points ahead.

Simply economics says if one wants to increase spending and growth,
you give money to the poorer in society who need it and will actually go out and spend it.

[niklol] 27/9/2022 12:58

Thank you for the info.
I topped up earlier.
See what happens.
Perhaps a takeover bid like Pendragon?

[clive7878] 27/9/2022 12:44

Believe I read for the last 6 months there were 804k new cars sold and 3.4m second hand cars sold, both slightly lower than last year.

niklol - I would agree with you that I would be surprised if VTU went lower.

They would have energy cost though on their car showrooms

I also read that 91% of car bought were either fleet cars or on HP, and that only 9% of purchases were actually bought outright.

VTU looks very good value at 43p after being 75p earlier on in the year.
Especially with a 4% yield, 1.7p last year.

[raleigh43] 27/9/2022 10:48

Car sales dropping off? No energy price fox for VTu?

Watching rom sidelines.

UK buyout activity will ramp up now.

[niklol] 27/9/2022 10:25

What a mess this country is in at the mo.

[sunshine today] 27/9/2022 10:13

I don’t know how many cars they have at any one time but when your market evaporates overnight you have a massive cash flow issue