Vertu Motors Share Discussion Threads

[sunshine today] 05/10/2022 16:39

The crippling effect of higher rates has not even got into first gear.

[sunshine today] 05/10/2022 16:36

Correct thread

Returns over 17 years of around 6600%. (All recorded, inc some thumping hits).

So old hand, learnt that although you may think you bought a bargain , unless others join that view quickly, the stock is unfortunately going down.

[microscope] 05/10/2022 16:06

Bookie just sent me some prices for the Sunshine Handicap. :)4/6 Posted in wrong thread11/4 Short of VTU9/2 Stock Market Veteran, learnt nothing over the years, or beginner.16/1 Purple Pelmets alias33/1 All of above :).

[sunshine today] 05/10/2022 15:53

Sad to say few here grasp the fact that to keep a share up one requires buying.

The outlook is grim , absolutely no point looking in the rear view mirror.

Even if you have fabulous management your stuffed when the weaker players start slashing prices to hold the bank at bay.

Hence todays tiny rise that I believe will have disappeared within a short space of time.

If you want your company to expand then buy off the official receiver in a few months time at the correct price.

[microscope] 05/10/2022 14:12

Thanks Katai. Should get a fair amount of publicity in coming days, more broker comments, news from presentation and probably IC, Shares Mag and additional media coverage, hopefully a little more upbeat, or less cautious, than that one.

Buyback should underpin 45p and not that much resistance on 1yr chart to work through to 58p.

A bidder wouldn't - or shouldn't! - get away with much below tangible nav imho. (71p+).

If my first post this morning came across a bit over enthusiastic I would apologize, but I've not wavered at any point in my conviction about this as an investment, despite taking a fair few pelters along the way on here, and I feel this morning's announcement fully justified a bullish response.

Great timing and comments from you Clive, well done.

A few other things worth a mention I think now had more time to look at details.

Emphasis on acquisitions and room for leverage suggests might have sights on buying something fairly large, while at same time a bullish tone throughout almost had a sense of putting themselves in the shop window, but saying, if you want us you'll have to pay a proper price, to any bidders.

If they only made 2p eps in second half, p/e would be not much more than 5 at this shareprice.

So my conclusion would be that market has oversold this by a fair old way, and that outlook for holders and new investors is excellent.

[kalai1] 05/10/2022 12:52

Vertu Motors plc posted Interims this morning. HY numbers were solid, vehicle margin strength offsetting volume shortfalls. HY revenues were £1,999.7m, adjusted PBT £28.2m, basic adjusted EPS 6.5p. Full-year profits are expected to be ahead of market expectations, albeit still down significantly from FY22 bumper performance. 10.5m shares representing 2.9% of share capital in issue on 1 March 2022 have been repurchased at a cost of £5.9m since 1 March 2022. The balance sheet looks solid, net cash excluding lease liabilities of £17.8m. net debt of £67.3m including lease liabilities, down from £72.7m at end FY22. Valuation looks very attractive with forward PE ratio at 5.8x ad PS ratio at 0.04x. Share price has been in a correction through 2022 with most of the Consumer Cyclicals and therefore lacks positive momentum. The reason of course is the fragile macro environment which remains the main negative on the investment horizon. Other than this cloud, VTU looks a very interesting auto retailer to own for the medium to longer run. Certainly a share worth monitoring for the time being...

...from WealthOracle

hxxp://wealthoracle.co.uk/detailed-result-full/VTU/561

[santangello] 05/10/2022 11:50

Almost miserly response from MMs this a.m, and considering buy volume too.

My take is either delayed sell trades yet to be revealed, or more likely, the bidder/accruer has an agreed price to hoover stock up at an agreed price....see the 50k buys going through for example.

Just my opinion.

[riverman77] 05/10/2022 11:12

Assuming a typical 30% bid premium then any offer would have to be in the region of 60p - would still be very cheap even at that price.

[microscope] 05/10/2022 08:17

Agree Santangello. And I wonder how many people will get to note Six in the accounts.In these results today, corporation tax is calculated at the full 25pc.The mini budget cancellation of the rise, from 19pc, to 25pc, which was announced after results date of end of August, will mean a further 3.4 million gain for the company.

[santangello] 05/10/2022 07:47

.......and all doom posters, breathe out and relax.......and try and buy a decent amount (good luck with that).

My opinion is the share price needs to (and no doubt will) head North or the takeover will happen soon. Can you imagine the predator reading todays statement and reading the current cost to nab it.

I hope I am wrong and stay as we are.

[microscope] 05/10/2022 07:40

Wow so so good.NTAV over 70p, and if they ever get round to revaluing their property portfolio, probably near 90p as has been suggested by others anyway and I agree.Dividend up.Revenues up despite the stellar comparison of last year.Oh also the buyback news.And the cream on top.Full year anticipated to be ahead of market expectations. Not many good news stories around right now in this world, so it's my congrats all at VTU.Market is usually a bit slow to react to this company, if they are today a huge buying opportunity awaits imho of course, and no advice intended. :)

[boonboon] 05/10/2022 07:34

Strong results and profit upgrade

[clive7878] 04/10/2022 18:44

Maybe tomorrow VTU will be on a lot more investors radar screens,
and maybe this board will be a lot liverier tomorrow. - Maybe I am too optimistic.

The market today was stronger, but the upturn was not as great as I did expect.
Mortgage rates now have been really wacked up.
I re-mortgaged just before the rates started to rise - very well timed.

[clive7878] 04/10/2022 18:38

hi microscope - have dipped my toe into the water today bought a few.
In financials asset value is down as 88p per share,
even a 10% or even 20% fall in profits still leave VTU on a very low pe ratio,
that should still be extremely good value, even considering the hike in energy prices,
and potential increase in radically interest rates. I also believe that if trading is strong as per announcement, then the fall - if any in profits - will be marginal.

to be able to buy at 35p or 30p is just not going to happen - the financials are too strong.
The stock is worth a minimum of 50p all day long, even 60p. Even with a -28.6 drop in earnings over the next 3 years - as per Simply Wall - VTU could still be very good value.

I also like DEC with a 10% yield which should be maintained for the whole of next year
I am looking at Sainsburys, but was surprised that the increase today was only 2p with a 7% yield.

[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 ?