Volvere Share Discussion Threads

[spob] 26/5/2017 07:11

market cap 27m

cash 20m

and some very profitable businesses valued at just 7 million

[plentymorefish] 24/5/2017 13:11

glad I bought last week and didn't leave it til now!

[rivaldo] 24/5/2017 12:39

Yep, great to see buying now at the full 680p offer price.

[melf] 24/5/2017 10:11

Severe shortage - can't even buy 10 at Selftrade at the mo, but they're quite happy to pay 652.5p for mine.

EDIT: Congrats to whoever managed to get 1,000 of them!

[modform] 23/5/2017 12:47

One of those shares that you buy it, sleep on it.Fair valuation is close to 10 quid imo

[rivaldo] 23/5/2017 12:43

Quite right - got my dates mixed up!

[rogash] 23/5/2017 10:30

I think the results are Friday rivaldo.

[rivaldo] 23/5/2017 08:25

Online remains encouraging. I can only buy a maximum 150 shares at 664.85p, whilst I can sell 2,000 at 651.51p.

The results are out this Thursday.

[rivaldo] 19/5/2017 11:26

Congrats to whoever just bought 1,000 shares at 660p - they must have a genius broker! I can still only buy a maximum 150 shares online at 660p, whilst I can sell 2,000 at a premium at 641.11p.

Melf, in my experience although a huge cash pile does indeed act as a defensive backstop and bulwark (which is great), in many cases a huge cash pile actually holds back the share price upside since it's seen as a dead weight and not actually doing anything material for the company. If it weren't there and the company were purely a collection of businesses, then those businesses might be more realistically valued.

[melf] 19/5/2017 10:49

I suppose the large cash back stop is really supporting the share price given the way market is valuing the sub companies. If it wasn't there, one wonders where the price would have been.

[cockerhoop] 18/5/2017 13:55

From memory I think cash & marketable securities has averaged £15m over the last 7-8 years so not the determinant but as you say it's just noise :-). They seem to know what they're doing though they won't appear on many ROE or ROCE screens!!

[rivaldo] 18/5/2017 13:43

Agreed re the nature of the target companies, but I suspect there are larger acquisitions to be had than the historic prices of £1.5m or less, which I assume were partly determined by the much lower cash pile at the time.

It's all just noise of course. Overriding it all is that I trust the Landers to utilise the £20m cash pile in a sensible way.

[cockerhoop] 18/5/2017 12:29

Perhaps Rivaldo but I get the impression that the Landers specialise in aquiring business with short term cash flow or viability issues which allows them to take control for next to nothing. I'm not sure companies with those sort of issues are available at £8-10m with the same quantum of turnaround potential.

[rivaldo] 18/5/2017 11:53

Great to see new highs on a down day in the markets.

I agree the above comments - I'd rather VLE hung on to their £20m cash for the right deal and have great confidence that they will.

I do have a feeling that the next acquisition will be bigger than previous ones in cost terms - which wouldn't be difficult! A buy of say £8m-£10m would be ideal in my book. At prior rates of return this would bring in anywhere from £25m-£40m, which would have a dramatic impact on the true NAV, increasing it from the current (say) 1000p to anywhere from 1500p upwards.

[cockerhoop] 18/5/2017 11:05

Zoolook,

Don't do yourself down - I've heard at my local that you're quite astute! :-)

[zoolook] 18/5/2017 10:58

Maybe we have to wait for a downturn in business confidence so they can buy companies at low valuations. I'd rather they hung onto that cash than return it to shareholders as history shows they would probably invest the money better than I would!

[melf] 18/5/2017 10:49

So the company has £20M in cash, has anyone got any thoughts as to where they are going with this? Obviously they're continually assessing new investments but history shows that they've never paid anything in that ball park for an asset. Maybe they're keeping their powder dry for the big one.....would love to hear from others.

[plentymorefish] 18/5/2017 10:27

Yep, I've been here before and sold just cos I was chasing 'hot stuff' with ISA trading money which worked out well. The purchase here is long term hold and forget as they've gone in my SIPP. If the price slips, I'll buy a few more....

[melf] 18/5/2017 10:12

plentymorefish....not to worry, you've probably bought yourself £10+ worth of assets for your money :-)

[plentymorefish] 18/5/2017 10:08

Bit the bullet and had to pay 650 for 1000 shares...

[plentymorefish] 17/5/2017 16:10

Aye, might be the way I need to go

[piedro] 17/5/2017 16:04

Why not use a decent broker and buy within the spread?

[greenroom78] 17/5/2017 14:22

I think it is a case of placing a limit order if you genuinely want some.

[plentymorefish] 17/5/2017 14:14

I can't even get a firm quote to buy 1000 shares!

[greenroom78] 16/5/2017 15:19

Why don't you pair up, buy all 30 of them and set us on our way.