Member Info for TheMoss

They have burnt £10m of cash in the past year. At the end of March the had £5m. They must be getting short of cash unless something drastic has changed.

I think Motorpoint put out a statement that was less than positive.

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.

The additional hires will hit the bottom line in the short term but you would hope it would pay dividends in the longer term.

Pendragon's profits were around £80 and I think they are talking £400m with the latest offer

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

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.

It would be an attractive business to buy. The share price has full asset backing and you'd get your money back in 5 years.

The market cap is £233m and the forecast profit is not less as than £70m which is a PE of a little over 3. That does seem low. What the PE is when the market returns to normal is the big question. You would think the present fall is just a blip caused by profit taking at 75p followed closely by a general market fall. Is anyone aware of any other reason for the fall?

I don't follow your logic on this. Kingspan made the product and NHBC approved it but you reckon Persimmon are responsible because they make a profit.
They have offered to correct defects in buildings they constructed but I don't agree with Grove's approach of asking responsible householders to pay for those who can't or won't pay.

What about Kingspan? Have they no responsibility in this?

This doesn't make sense. The decision to keep the furlough money was known some while ago. Why would it have such a large effect at a much later point? It's not something that is affecting other motor retailers. I hope someone doesn't know something and is doing some insider trading.

Does anyone know why this has fallen almost 6% in one day?

Could be the article in the Investors chronicle.

The profit forecast for the year is £65 million. That seems to be very conservative. The market value of the company is only £200m. This is going to be on 2 to 3 times earnings which seems a bit mean.

I would be interested but a 7% spread plus dealing costs is getting silly.

Revenues are holding up,. It pays a good dividend. There are growth prospects with Tasty Trades. All seems good.

I think the Vertu share price is simply following the market at the moment. The way Vertu is handling the share back is good. They should buy more.

You can't blame the management for the water problem although some seemed to know and act on it before they should have been able to. What irks is the large payouts to managers while shareholders see nothing but a falling share price.