Volvere Share Discussion Threads

[melf] 30/3/2017 17:17

I'm no expert on these things but surely M&Z haven't played this very well. I know they've made plenty but surely if they'd taken their fingers off the trigger for a while they would have ended up with a higher selling price.

[eezymunny] 30/3/2017 17:03

I suspect they've been fishing for buyers to clear out Marks/Zimmerman for 18 months and yesterday's volume may just have done that (as Riv suggested). We'll never really know but with any luck this could run higher fairly quickly towards what I think we all feel is a more sensible valuation...

Fingers crossed!

[greenroom78] 30/3/2017 16:41

Nice, puts to bed the worry of yesterday's little dip too.

[rivaldo] 30/3/2017 15:24

It's completely de minimis and can be ignored imo. Just legacy stuff.

Good to see the first ever buy at 600p today.

[modform] 30/3/2017 15:06

NMT could still have some IP that brings in some money but not sure if or how much

[eezymunny] 30/3/2017 14:59

NMT is inactive I believe. Look up the accts on company house. There's a cash balance that gets run down, perhaps to pay corporate overheads. Maybe some tax reason not to close it down...?

[mathewawood] 30/3/2017 14:52

Just been on Volvere web site and clicked portfolio and this came up:

CURRENT PORTFOLIO
NMT Group
NMT is a medical devices company that developed a safety syringe to prevent needlestick injury. The company owns certain intellectual property in this area but no longer has any operations.

Thought they had only 3 in the portfolio. Can anybody help? Is this legacy stuff which hasn't been deleted?

[melf] 30/3/2017 14:20

Putting it simply, the cash (£20M) and the Freehold property (£2.5m -2014 value) are worth around 560p per share. The rest is thrown in!

[the big fella] 30/3/2017 14:13

Indeed and why I added to my position yesterday.

[eezymunny] 30/3/2017 12:52

Interesting to look at the value Mr Market puts on RCDO.

Price/sales 1.4
P/E 15


And the value being ascribed to Impetus is next to nothing currently. A 1.4 price/sales value on Impetus on H2 runrate (9.24m, annualised 18.48m) would give £25.87m (worth £20.43m to VLE).

Add that to the cash pile of £20.1 and throw in perhaps 5.5m for Shire and and Sira and you get £46m. Knock off management bonuses on company sales of say £2.5m and you get £43.5m or £10.68/share.

Volvere is surely priced all wrong here IMO... In any sane world it would trade at a premium to my valuation given the very long history of value creation by the VLE team (just IMVHO).

ps RCDO is 20 x the size of Impetus and a significantly different beast to VLE, but also similar in many ways and in same sector etc....

Things can always go wrong but really....with £20m cash on the balance sheet it's very very rare that you get offered this kind of risk reward IMO.

[rivaldo] 30/3/2017 12:39

...and now a maximum of 100 shares available to buy online :o))

Nice one EM.

[eezymunny] 30/3/2017 12:08

Amazing how these MM's will alter online availability. Yesterday I bought 10,000 no problem but right now only 175 available.

lol

[rivaldo] 30/3/2017 10:29

Online you can now only buy a maximum 1k shares, whilst you can sell an increased 4k at 551.2p.

My suspicion that the overhang has cleared is fast increasing :o))

[rivaldo] 29/3/2017 15:47

A hugely active day by VLE's standards, with £120,000 of shares traded.

I get the feeling that the overhang may be (finally!) coming to an end, as the maximum you can buy online is now 3k, well down from recent levels of 10k or so - and you can also sell 3k, which you certainly couldn't have done recently.

[rhomboid] 29/3/2017 13:00

I've topped up again, I'm now up to the maximum holding I feel comfortable with based on M cap & lack of liquidity, this is crazily undervalued

[melf] 29/3/2017 12:42

What a bargain. The market is giving away profitable businesses for virtually nothing!

[the big fella] 29/3/2017 11:29

Just think they are making a market - with a tightening of the "real" spread. Nothing goes up in a straight line. A slight retrace before the next leg up seems to be the order of the day in my view.

[eeza] 29/3/2017 11:24

MM's found another wadge down the sofa.

[spob] 29/3/2017 08:01

Chill out guys - i'm sure it's just an innocent mistake

[melf] 28/3/2017 13:15

Thanks for the comments chaps. I thought it looked odd as well when I saw it.

[eezymunny] 28/3/2017 12:22

And he says "these three businesses are being valued by Volvere".

That's just total tripe. Volvere aren't valuing the businesses at all, Mr Market is!!!

A truly pathetic write-up IMVHO.

[rivaldo] 28/3/2017 12:13

Agreed EM. It looked odd to me too, but I didn't do the calculation.

Which makes the undervaluation even more stark.

Anyway, all publicity is good publicity, especially for a stock like VLE which remains largely under the radar, certainly of institutional investors due to the illiquidity.

[eezymunny] 28/3/2017 11:56

How on earth does he get "Combined these three businesses are being valued by Volvere on just 4.5 times their aggregate net profits".

Agrregate (1.5 * 0.8) +0.16 + (1*0.8) and you get £2.16m.

Cash £20.1m, market cap 23.3m at 573p, so those businesses are being valued at £3.2m, or just 3.2/2.16 = 1.48 x agg pbt of the subs. Quite funny really...

[rivaldo] 28/3/2017 11:43

Tipped by Simon Thompson in the IC as follows (cheers mate) - the company valuations are "clearly way below their open market values if sold":

"Volvere's bumper results

Another constituent of my 2016 Bargain shares portfolio, Aim-traded investment company Volvere(VLE:585p), has issued a bullish updated ahead of the release of full-year results at the end of May. The company expects to lift pre-tax profits by a third to £1.8m driven by a 20 per cent rise in revenues to £33.2m and is pencilling in an 8 per cent increase in its net asset value per share to a record high of 614p.

I would flag up that Volvere has cash and marketable securities worth £20.1m on its balance sheet, up from £16.3m a year earlier, a sum that accounts for 80 per cent of equity shareholder funds after adjusting for non-controlling interests. In other words, it has almost 500p a share of cash on the balance sheet.

Moreover, the latest reported net asset value figure looks very conservative as it implies a valuation of only £6.5m for the company's three main investee companies. These include an 80 per cent holding in Impetus Automotive, a provider of consulting services to the automotive sector. Impetus posted a £900,000 rise in pre-tax profits to £1.5m on revenues up 43 per cent to £17.4m last year, an impressive return on the £1.3m the company paid for its stake in 2015. Volvere's wholly owned digital CCTV viewing business, Sira Defence and Security, is making good progress too, posting a 33 per cent increase in pre-tax profits to £160,000 on 23 per cent higher revenues of £380,000.

True, profits slipped at frozen pie and pasty maker Shire Foods, a company in which Volvere owns an 80 per cent shareholding. Higher raw material costs following sterling's devaluation, and the decision of a customer to bring manufacturing in-house impacted the performance, but the business still turned in almost £1m of pre-tax profits on flat revenues of £15.4m.

Combined these three businesses are being valued by Volvere on just 4.5 times their aggregate net profits, a valuation that is clearly way below their open market values if sold. So, with the investment risk skewed to the upside, and the company cashed up to make further value-enhancing acquisitions, I feel the shares - up a third on an offer-to-bid basis since I initiated coverage 13 months ago - are well supported. Run profits."

[the big fella] 23/3/2017 17:07

I bought back in having foolishly banked profits last year. For me it was a smallish initial stake of 4000 shares yesterday. I would like a few more but would like them to fall back a bit to get them