BigRat
13 Oct 2016
Re: Investors Chronicle EPS for 6 months to 31st Aug were 3.87p. Assuming same performance for next 6 months gives full yr eps of 7.74p. 7 x earnings gives SP of circa 54p. Very pessimistic & imo still oversold (rsi supports this) but appreciate nervousness of market. I'm in at 46p.
tommytomata
12 Oct 2016
Investors Chronicle t's a tricky time for car retailers, particularly Vertu Motors (VTU), which has historically been a strong performer in the sector. Despite reporting an impressive set of interim figures, a 4.2 per cent drop in like-for-like new car volumes has put the market on edge. That's because a drop-off in demand for new vehicles could preface a contraction in the UK car market. But chief executive Robert Forrester insists low interest rates and high employment justify the group's forecasts this year, evidenced by the all-important plate change month of September, where Vertu's profits grew ahead of prior year levels on a like-for-like basis.But continued underperformance in Vertu's share price suggests investors have taken predictions of a decline in the new car market in 2017 from the Society of Motor Manufacturers & Traders (SMMT) to heart. It doesn't seem to matter that Vertu generates 72 per cent of its gross profits from used cars and aftersales. There is some analyst concern regarding Vertu's limited levels of free cash flow as a result of an intense capital expenditure programme. During the first six months, cash generated from operations fell to £26.4m from £37.6m this time last year.Analysts at Panmure Gordon expect pre-tax profits of £30.9m for the year ending February 2017, giving EPS of 6.2p, compared with £27.3m and 6.3p in FY2016.
theprior
12 Oct 2016
Interims Solid results despite private car sales softening.Van sales improvement is interesting. Lots more couriers on the roads these days.TP
valeite
05 Oct 2016
new car sales fleet buyers push new car sales to new high for month of september but private buyers have fallen for 6 months in a row .i can only assume that the market feels that this is as good as its gonna get for car dealers .brexit has dented confidence in this sector but the market has priced in something much worse than has actually happened
Hays
14 Sep 2016
Collins Sarri Statham Investments believes carpet and floor coverings retailer Carpetright and car dealer Vertu Motors look like acquisition...
forwardloop
11 Sep 2016
info shares mag BUY courtesy of Allinace Trust newsletterVertu’s virtues underrated Canny management and copper-bottomed balance sheet are strengths for car dealer James Crux Share price weakness at ambitious automotive retailer Vertu Motors (VTU:AIM) represents an attractive entry point for investors. While Brexit could impact spending on big-ticket purchases including cars, Vertu has growth levers to pull and a reassuringly strong balance sheet under the bonnet. Since floating in 2006 with a stated ‘buy-and-build’ strategy, Vertu has grown into the UK’s fifth largest automotive retailer, trading under brands including Bristol Street Motors, Vertu and Macklin Motors. Shares have drifted down from 78p in January to 50.25p, reflecting worries about a new car market cooling and the impact of an EU exit on the industry. Yet Vertu’s pre-close update (1 Sep) highlighted robust half-year trading and astute CEO Robert Forrester still expects to deliver record full-year sales and profit. SMMT data since April shows the trend in UK private vehicle sales slowing following a period of sustained growth to record levels and Vertu’s September new car orders have indeed cooled. However high-quality, repeatable aftersales and used car sales, speaking for the bulk of profitability, continue to grow. ‘The result of the referendum to leave the European Union has, to date, not impacted consumer confidence as adversely as some were initially predicting and the group has not experienced any significant change in consumer behaviour,’ says Vertu. Record low interest rates and record employment in the UK provide a healthy backdrop for the motor retail sector, although the weak pound creates uncertainties around manufacturers’ strategies on pricing. It is worth pointing out that the UK represents the second biggest market for new vehicles in the current EU and thousands of continental European jobs are reliant on a continuation of this trade with the UK, so manufacturers will be keen to support UK retailers through the uncertainty. Vertu is well-placed to profit from prevailing conditions through its established network of volume and premium car dealerships and can turbo-charge earnings through M&A, having proven its ability to acquire and turn round underperforming dealerships. Vertu has a strong, asset-backed balance sheet and the majority of the £35 million raised in a March placing has been deployed in earnings-enhancing acquisitions. Liberum has a ‘buy’ rating and 100p price target for Vertu. For the year to February 2017, the broker forecasts growth in adjusted pre-tax profits to £31.4 million (2016: £27.4 million) for 6.2p of earnings and a maintained 1.3p dividend. On these metrics, Vertu looks oversold on a grudging PE of 8 with a 2.6% dividend yield. Shares says BUY : "Vertu Motors is significantly oversold at 50.25p."
Hays
07 Sep 2016
I think the stock found a comfortable support level at 50. So it'll take a very bad news to go below that and not a lot required to go above 50. Results are due in Oct so should rally towards 60 tip next update
valeite
06 Sep 2016
Re: Solidly over 50 the market ,post brexit , assumed a recession .doesn't look likely yet .if we muddle through (we usually do )i think you'll be right ab 60/70 p
theprior
06 Sep 2016
Solidly over 50 Showing more signs of recovery, 42p now in the distant past. 60p here we come !Luck all, TP
Nige the snake
01 Sep 2016
Re: 42p ceiling Will be buying soon after open above all the chart looks like an overwhelming buy. That's given it the kiss of death now I've shown an interest 
Mister Ed
01 Sep 2016
Re: 42p ceiling We have the anticipated positive trading update this morning. Record revenue and profit expected. VTU looks undervalued and should see a mark up.
theprior
01 Sep 2016
Pre close statement. Record revenues and profits expected. Softening of new retail sales. Strong aftersales/used vehicle sector.Good news indeed TP
theprior
05 Aug 2016
£2ks worth Of free shares for the directors.Wonder how many they would've got if the sp had gone up not down. ??TPps wonder if they'll cash 'em in or wait for 60p to come back ?
theprior
31 Jul 2016
Re: 42p ceiling Well, ME, not quite 60p yet, not even 50. But still heading in the right direction. Got my little DRIP of divi this week so, sp growing slowly, divi growing slowly, number of shares growing slowly.No rush of blood to the head here, is there ??But I'll go for a steady rise vs volatility/downward spiral anytime.Luck all, TP
Mister Ed
12 Jul 2016
Re: 42p ceiling Decent recovery today on good volume. With strong US markets and new UK PM appointment, I can see 51p this week and 60p before month end.
