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9 MIL buys to 700,000m sells and they drop the price, with two decent RNSs aswell. ???
Ditto...Topped up at a tad over 50p this morning. I now own way more of these than is good for me. But there is seriously no way these should be trading at below their tangible NAV (~68p). Even if things get a little sticky in the coming year or so, it's hard to see them swinging to a loss so add the value of the business on top of the healthy NAV and it's difficult to come to a fair valuation below ~90p. Bring it on :D
Just picked some up after seeing their cracking results, will be interesting to see the broker ratings now.
90m cash. 80m net profit, 25pc of which achieved in last 2 months. 70p per share in tangible assets nearly. Dividend paying.
Strong.
Outstanding results !!
Looking GREAT!
Robert Forrester, CEO and Karen Anderson, CFO present Full Year results followed by Q&A.
Monday 16th May, 8.30am. (Results are released 11.5.22).
Join us here: https://bit.ly/VTU_FY22_webinar
They've done a share buy back, set up a Toyota dealership in Scotland and bought the freehold of premises previously rented by the Coop. All of this should have a positive impact on future EPS. I understand trading conditions will worsen but they seem in as good a shape as any car dealer to deal with it. You would think they are undervalued.
40% discount to NAV approx. Very harshly priced.
Stockopedia gives it value score of 93. Seemed cheap at 70p. Cash and land probably not even covered. But whats the outlook i guess? Well either mass demand for used cars or green cars or new ice cars but they are well placed for anything.
Been out for a few months but back in at 51.4. Looks undervalued, results pending, what's not to like!
Thanks for the response. I have done my DD and that is why I’m invested. I was just unsure as to what impact the company buy back scheme may have short term on the stock price. Like you say it’s not a significant amount so that helps me to decide cheers and all the best
'Fairly new into this stock. Can we expect the share price to remain lower or stagnate ....'
Who knows? That's the risk in investing in shares - two years ago these were 18p, 3 months ago mid 70's, now they're mid 50's. Why not mid 40's or 80's? Knowing when to buy is one thing - knowing when to take some profits is quite another.
They've had share buybacks before - and they've issued equity for purchases in the past. The share buybacks are welcome - but modest affairs, £3m won't make hug inroads into 350m shares in issue.
Basically - and this applies to all shares - you have to decide if its a business that's going to do well in a market which has a future and with a mangement who aren't fools or crooks.
In my opinion the management is sound - and people buy cars - so that's why I'm a long term holder of VTU.
You pays your money and hope for the best - no one on here has a crystal ball. Good luck with what you decide.
Quick question please. Fairly new into this stock. Can we expect the share price to remain lower or stagnate until the buy back is complete. Fairly new to stocks and I’m presuming the company will want to buy back as low as possible so presuming this will affect the price. Just deciding when to top up here TIA
Agreed on both counts, a very well run business with excellent risk management. Current price looks to reflect uncertainty in the segment due to inflationary pressures and with Vertu a very conservative early outlook for 2022/23 from last market update. Although the industry has had a positive March and April is also looking in good shape according to sources in the trade. Looks like they have only exercised a 3rd of their share buy back commitment so far, hopefully they'll get moving with this soon which might help kick-start a positive move. Currently shares trading at less than asset value, plenty of upside for Vertu once confidence in the sector is restored. They are also on an acquisition path and want to be no.1 retailer in the UK.
Totally agree Hunter. This is on my radar as one of the best undervalued companies out there. I find myself wondering why it's so cheap...buying a few thousand more...then it drops further :D But I have a solid conviction that it will make me a tidy sum ...one day.
I love it when the market gives you these sort of buying opportunities! At circa 54p to buy today (i.e. sub £200m MCap) you get a well run company that's trading at a 12% discount to it's last reported Net Asset value; that has net cash and where you know, in less than 3 weeks from now, they're going to report a PBT of "not less than £75m". What a bargain!
Pendragon's profits were around £80 and I think they are talking £400m with the latest offer
Not to mention share price is virtually fully underpinned by the property / real estate, this is also on a book value probably not reflecting actual realisable land values.
Buy this business, do a sale and leaseback on properties and walk away with what ? 50 million cash plus a profitable business .
Looks sure to be ripe for a takeover in the next 18 months.
Wish I had 250 million fish to play with, Id buy it .
The market cap is £213m, profit will be not less than £75m so that's a PE of less than 3. Even if profits half next year it's still not expensive
Read across from Lookers and slow down in second hand car sales.
Does anyone know why the share price is falling so much? Over 8% down.
I have read the Pendragon results and compared the valuation with Vertu. By any sort of reasonable measure you would think Vertu was undervalued. Neither are the market conditions slowing down. They are saying the first two months of 2022 are better than 2021. There is no reason to think anything is different for Vertu.
Probably a very good reason the shares are so cheap...
Even cheaper now and with the 3pc or so share buy back this week.