SoundDT
04 Mar 2019
Vertu Motors Strong balance sheet provides additional firepower A very good review on the latest trading update. All sounding very positive for Vertu.
mildmouth
24 Oct 2017
Re: Looks undervalued As mentioned in posts earlier this year, Motor retail companies have been buying up dealerships, paying way over the odds and reporting increased profits on the back of it. The way they have been achieving that is by carrying the overpayment in the balance sheet as "goodwill" and these days (wrongly in my opinion) accounting rules allow them to apply largely subjective tests not to write down the goodwill. However, when as in the case of Pendragon they start having to look at abandoning certain manufacturers' franchises then the potential for having to write off huge sums of this "goodwill" is enormous.Vertu is a much more defensive business having net tangible assets per share of 38p after deducting £95 million goodwill, whereas Pendragon has about £350 million of goodwill which represents almost the entire net worth in the balance sheet, so net tangible assets per share of about "zilch"! Nevertheless, I suspect it is almost certain that Vertu will be compelled, like Pendragon, to write off some considerable sums of that goodwill. We have all been there before and, in one major market dip, could buy motor dealer shares for under net tangible asset value and in some cases well under.
Blanketstacker
23 Oct 2017
Re: Looks undervalued Much cheaper today off the back of news from Pendragon. However this is the same sector but a different business. Perhaps a buying opportunity sub-40?
Blanketstacker
16 Oct 2017
Re: Looks undervalued Price is being held back by general economic uncertainty, and reports of falling car sales. However the dividend is sufficient compensation for the wait while this picks up. The switch to EVs will not impact here, and there is a background of solid freeholds on premises. I hold a few and could add if there are further drops.
theprior
14 Oct 2017
Re: A gentle decline You’re lucky, Daily Star. I’ve seen lots of shares suffer a gentle decline as the reality of their market situation slowly hits home. The benefit of a gentle decline is that it does give you time to take action whereas a “plummeting” sp gives you no time at all. 
)Good luck, TP
tommytomata
13 Oct 2017
A gentle decline That's a new one on me
theprior
13 Oct 2017
Re: Looks undervalued But, WE, the market appears to be shrinking, which may well affect profitability. Anticipate a gentle decline. /
((TP
Welsheagle
11 Oct 2017
Looks undervalued VTU seems to have a low PE, good dividend, and cash in the bank - looks undervalued on fundamentals.
item club
05 Oct 2017
Opportunity knocks ! New sales down 9% so sp drops 5% so a perfect buying / topping up opportunity long term !
theprior
01 Sep 2017
Re: Daily star reporter Well, tommy, tomorrow has come and gone so far as the markets are concerned, and, guess what ? Absolutely no plummeting in sight 
))Next week should see a bit of a rise across the board as the city gets back to work.Possibly an upturn in VTU's sp too ??Good luck with you short.TP
tommytomata
31 Aug 2017
Daily star reporter Hi PriorPlummeting enough yet? What till tomorrow
theprior
11 Aug 2017
Re: Not sure sector will " collapse" as you put it ( a bit ott) but agree fully with your assessment of any buy back programme. If they've got spare cash it should be reinvested in the business.But I'm not selling.TP
shangha1
09 Aug 2017
Sold out due to Buy Back Omitted subject line . Apologies
shangha1
09 Aug 2017
Sold out. Share buy-backs are a sign that directors do not know what to do the cash the company is holding. Experience has taught me that institutions use it as an opportunity to sell out and it often as a consequence does nothing to boost the share price. The most sensible option would have been for the directors to retain the cash for future investment opportunities as there should be some bargains in the auto sector as a consequence of Brexit when the sector collapses.
theprior
01 Aug 2017
Buy back 700k shares bought back at a cost of c£300kDoesn't seem to have lifted the sp much, even though our shares are technically worth a bit more. I don't think share buybacks are worth it. They'd be better spending the money on business enhancing stuff or just putting the divi up a bit more.Still, other than that little problem, (and, of course the macro economics) the company seems to be doing well. Still a good management team, doing a good job. TP
