Lookers was a deep value mess that nobody wanted to touch. Once the mess was cleared up. And it was really only a matter of time, the Group owned lots of property to keep the banks lending, the shares would bounce and the co never did that badly anyway. Once the bounce was genuinely on I sold.
But I had been looking at the competitors in the interim and did feel that #VTU might be a genuine GARP situation. Perhaps even a slight discount value one. The other company that I thought might be almost as good was Marshall’s but the CEO of VTU is certainly prepared to engage with the retail community and whilst I do not get to obsessed with what management say, it’s the actual numbers that count, I think that’s a good thing.
Bought some in July and added some more in August.
Without going into too much detail I do see this as a very well run business. There are lots of Macro issues around; EV’s, legislation, agency models, but VTU cannot control these so what it seems to do is control what it can and do that well.
Based on its August 20th TU I can see this as a sustainable £30m PAT business. (Management are forecasting £50-£55m PBT for this year, so I have rated it down and added tax). On a PE of 10, that gets you £300m and the current market cap is only £190m so there is plenty of MoS. And to be fair the £300m is I think, rather conservative.
My current average buy price is 48p and I am likely to add some more.
Always Do Your Own Research