The latest Investing Matters Podcast episode featuring financial educator and author Jared Dillian has been released. Listen here.
London South East prides itself on its community spirit, and in order to keep the chat section problem free, we ask all members to follow these simple rules. In these rules, we refer to ourselves as "we", "us", "our". The user of the website is referred to as "you" and "your".
By posting on our share chat boards you are agreeing to the following:
The IP address of all posts is recorded to aid in enforcing these conditions. As a user you agree to any information you have entered being stored in a database. You agree that we have the right to remove, edit, move or close any topic or board at any time should we see fit. You agree that we have the right to remove any post without notice. You agree that we have the right to suspend your account without notice.
Please note some users may not behave properly and may post content that is misleading, untrue or offensive.
It is not possible for us to fully monitor all content all of the time but where we have actually received notice of any content that is potentially misleading, untrue, offensive, unlawful, infringes third party rights or is potentially in breach of these terms and conditions, then we will review such content, decide whether to remove it from this website and act accordingly.
Premium Members are members that have a premium subscription with London South East. You can subscribe here.
London South East does not endorse such members, and posts should not be construed as advice and represent the opinions of the authors, not those of London South East Ltd, or its affiliates.
Yes there are a lot of negative posting here at the moment, My feeling is that the sp is being held back and not allow to break out past 264 that's four times now the sp has hit 264 and then fallen back .I posted a few weeks ago about OSB sp they increase profits my 21% but the sp drop by 40p, maybe they are making the wrong sort of profits I guess that's the market at the moment
Yes . I think that is sensible. Also, quietly making some super deals and building safe and strong foundations etc. As for Virgin Media. Worked with my students every time they rent one of my properties for a year at a time and worked with me as their white flyer always stuffed in my door was the thing I picked up and booked in . Also very helpful and reliable compared to other companies. Having been an estate agent many years ago , continuous letter drops / leaflet drops work . Unfortunately you might p of some people , but if they get annoyed with a bit of paper , do you really think they will be worth having as a client. Probably not and they can quite often be the person who moans about absolutely everything . So I am sorry to say Virgin get my vote as good marketing . If Richard does decide to sprout wings and meet his maker , then i will be hopeful for a takeover then etc . Sorry to sound like a callous capitalist .
Lots of negative posting the price of this share is very low. Growing assets and a steady NIM equals increased earnings. As with ALD this share could be taken out anytime. Cost income ratio falling. The excuse for the SP is the path in CET1 capital, down to 13.8%, that is merely a reflection of a growing asset base however.
I held Virgin Money from the IPO until the middle of last year and I have to admit it is a frustrating company to own shares in. For those of you that are confused by the valuation, the one thing I found affected the price more than any other factor was the perspective on the net interest margin. You can speculate all you like about all of the other things that the bank does but in my experience this figure was the key to valuation and the respective share price.
Let's see think this is now in the daftly valued territory. I know ppl in the credit risk function at VM who build the IFRS9 provisioning models and there is no big credit risk issue here. So there'll be no nasty surprises there.
Couldnt agree more....true valuation will come and I suspect soon.....patience will pay off here....I also see Citi have restated there BUY rating with a �3.50 value...this is a very strong buy for me....
With the Move into SME one step at a time and a move to digital banking and now this , the undervaluation of Virgin Money is getting massive. There is bound to be a huge breakout when people finally see this potential huge share price could move massively up to �4 or more as some of the more switched on analysts / brokers have mentioned . Even the motley fool has ear marked this as a potential doubling in value this year only the other day . Definitely one to hold and not get put off by negative analysts who may want to get in low and help push the price down etc. Had the same / similar doom sayers push the price on Fevertree , but now it has jumped up from �19 to almost �30 within less than a year. So look for the real news on deals being done behind the scenes and the jump in profits as has been happening with both Virgin Money and Fevertree , as that is where you should be looking for where a share should be going in my opinion . Good luck all
Tue, 20th Mar 2018 08:57 RNS Number : 2608I Virgin Money Holdings (UK) PLC 20 March 2018 THIS ANNOUNCEMENT INCLUDES INSIDE INFORMATION 20 March 2018 VIRGIN MONEY HOLDINGS (UK) PLC (the "Company" or "Virgin Money") VIRGIN MONEY AND ABERDEEN STANDARD INVESTMENTS AGREE TO ESTABLISH A NEW JOINT VENTURE FOR THE PROVISION OF ASSET MANAGEMENT SERVICES TO CUSTOMERS � The proposed joint venture will combine Virgin Money's brand and retail distribution expertise with Aberdeen Standard Investment's (ASI) strength in asset management together with access to the market-leading technology and digital expertise of ASI � The joint venture is expected to transform Virgin Money's retail investment proposition, driving significant growth in assets under management and capital-light returns � It is anticipated that ASI will acquire 50 per cent of Virgin Money Unit Trust Managers Limited1 with the transaction expected to complete by the end of 2018 Virgin Money and ASI are delighted to announce that they have agreed in principle to enter into a new strategic joint venture for the provision of asset management services to Virgin Money customers. As part of the joint venture, ASI will provide fund management services and access to its state-of-the-art digital technology. Virgin Money currently has over 200,000 retail investment customers and �3.7 billion in assets under management. The proposed joint venture with ASI will broaden Virgin Money's retail investment proposition. It will also extend ASI's strength and depth in providing customer focused diversified solutions to Virgin Money's existing investor base and leverage the strength of both brands to increase assets under management over time. Jayne-Anne Gadhia, Chief Executive at Virgin Money, said: "Our new partnership with Aberdeen Standard Investments will bring together two outstanding innovative brands. We look forward to using our brand and customer reach, combined with ASI's strength in asset management and its digital capability, to provide a market-leading customer proposition. "This mutually beneficial relationship will give our customers a broader fund choice and the tools and capability to invest for the future with confidence. As a result, it offers a compelling proposition for our customers and offers excellent value for our shareholders. It is expected to generate significant growth in assets under management, drive additional capital-light returns and to be game-changing for our investment business over the longer term." Martin Gilbert, Co-Chief Executive at Aberdeen Standard Investments, said: "We're delighted to be partnering with Virgin Money to develop their retail investment business. Their customer focus mirrors that of Aberdeen Standard Investments and we look forward to working together and sharing a strong and profitable relationship over many years t
Perhaps patience will be rewarded. Returning more cash to shareholders would probably be a good move.
I agree with you but it seems the market does not like VM anymore
Low PE ratio here??? What am I missing, seems too good to be true?
OSB profits up 21% SP down 16p the market is gone mad ,the big boys are buying up cheap shares time to take a break from buying shares the small investor cannot win
Think a few nice Director buys would go down very well right now....plenty of value here....digital is the only way forward and this will play out just nicely.....
Compass007 completely agree that the company is undervalued and I will continue to hold because I think it will come good. I am just thinking it may be a while before the value gets reflected in the share price and I am slightly surprised how much the share price has gone backwards over the last 12 months or so because I didn't really see that coming. I have topped up a bit on the dips.
badjob I do believe we are going to see some turbulence over the forseable due mainly to Brexit, however it is my opinion that VM are very undervalued on whatever metrics you use, and I also believe VM are going in the right direction with digital and the SME offerings, what I like about this bank is the "no legacy" issues and its intent with progressive dividends its growth prospects are also first class, although I do not see this challenger bank as a take over prospect just because its "Virgin" i do not dismiss it out of the realms of possibilities. The future looks very good.
I have a reasonably chunky holding in this - a bit underwater. I am not as optimistic about it in the short term - say-a 12 month view as I was a few months ago but I'm in for the long haul. The results were pretty good but I think there is genuine concern about the effective interest method of accounting used for credit cards which is accelerating profit recognition during interest free balance transfer periods. The receipts are modelled over 7 years and it is clear from yesterdays announcements that if the assumptions used are even slightly out, it will have a very major downwards impact on earnings. For example if the projections were over 5 years instead of 7 years, there would have been a material hit to profits so they are clearly picking the most favourable time periods to create the most positive results now. I think there is always a reason to be a bit concerned when a significant chunk of profits are not representative of cash but based on projections over as long a period of 7 years. For that reason and brexit etc I think the share price will languish until there is more optimism about growth from the digital offering and the new SME offerings. I think that will come just not as quickly as hoped. I do struggle with the disparity between this and Metro.
Thanks for that Compass, supports the general view here too. I have a feeling that this now will creep higher, slowly but surely. Undervalued shares just require patience. Harder than it sounds. I am in at the 264/265 level so feel confident despite the headwinds VM has faced. If brexit concludes in a manner of broad agreement UK shares in general will get a great boost....heres hopin!
Earnings multiples are currently relatively low across the banking sector but FTSE 250 banks Virgin Money Holdings(LSE: VM), BGEO Group(LSE: BGEO) and TBC Bank Group are the lowest of the lot. Are their incredibly cheap prices too compelling to ignore or too good to be true? Let's look at two of them. Rising challenger Shares of Virgin Money climbed as much as 6% higher in morning trading today after the challenger bank released forecast-beating annual results. Underlying pre-tax profit of �273m was 28% ahead of the prior year and comfortably exceeded a City consensus of �259m. Underlying earnings per share (EPS) increased 22% to 39.8p versus forecasts of 37.5p. Statutory numbers weren't much lower than underlying, as excluded costs were relatively small and genuinely one-off. As management noted, the bank is "unburdened by legacy issues." Customer balances continued to grow. At the year-end, retail deposit balances stood at �31bn, mortgage balances at �34bn and credit card balances at �3bn. The group is also developing SME and digital banking propositions, which provide additional drivers for future growth. - ADVERTISEMENT - I like Virgin's strong balance sheet, "uncompromising focus on asset quality" and very good efficiency metrics, which enabled it to deliver a healthy 14% return on tangible equity for the year. These qualities stand the group in good stead should the UK economy face headwinds. I believe the share price of 279p -- representing a 6% discount to book value and seven times earnings -- is too cheap to ignore. As such, I rate Virgin a 'buy'. Just on a side note....Im not a big fan of Motley fool but this looked interesting....
You are pretty much on the button VM are way out of Kilter on valuation....I can only put this down to Brexit ....but then you could ask why are other banks being valued differently? its very rare that the market scews up or misses something in the banking sector but unless I have missed something that is stareing me in the face I really do think they have got this wrong.....even on the basics we should be @ �3.00 minimum....
The underlying value in this company is not evident in the share price. For 2018 further growth is clearly anticipated. So net interest margins will be lower - will this effect the forward movement in P/E ?No It will reduce profits but not on a material level. Current EPS of 37.8p beat expectations. My understanding from Morningstar was that c. 33p was expected. Therefore P/E yesterday was slightly over 8 times (33p *�2.65 = 8.03 times). Today if we take this simple calculation on the new EPS figure 37.8p x 8.03 = �3.04 and we are only at �2.78. Sector medium is at 14.6 times P/E. Therefore 14.6 x 37.8p = �5.52 . The market really is a thick muppet. IPO at �2.83 with EPS at 23p in 2015 with the price range between �2.90 to �4.50. I think the 2015 EPS figure will double in 2018 to say 46p. What a bargin due to brexit and other macro economic factors. Lets say banks come back into favour in a few years could we be looking at the banking section in general with a P/E sector ratio of 20? Is so based on continued steady growth in 5 years we are looking at EPS of c. 75p x 20 = �15 (5.4 times the current price). Any comments negative/positive welcome ? ?
Virgin Money has reported a 28% increase in underlying full-year profit to �273.3m from �213.3m. However it warned that net interest margins for 2018 will be at the lower end of the range. The annual dividend is 6p a share. Chief executive Jayne-Anne Gadhia said: "We continue to experience robust customer demand and stable customer
Great RNS final results and great outlook with solid double digit growth for 2018
rise down to a set of good solid results
why the jump today chaps???
need to break through �2-80 and hold today.