Pendragon (LON:PDG) recently reported that the UK car market is buoyant, and there is more evidence of that today from Vertu Motors (LON:VTU), who announce in their pre-close trading update today that trading performance for the year ended 28 Feb 2013 will be ahead of current market expectations. As with most car dealers, they make their profit (a wafer thin margin) on aftersales. Having had a very quick look at the figures, it doesn't stand out as a particular bargain in my opinion, on about 14 times this year's earnings, and 10.5 times next year's.
As a general comment, I can't see the point in chasing up shares which have already risen a lot, and which now look fully priced.
The overhang from Caledonia Investments selling their large stake in Begbies Traynor (LON:BEG) finally cleared yesterday, so I am told. They disclosed as going below 3% (the last disclosure needed for a seller) on 27 Feb (relating to transaction(s) on 25 Feb), and apparently are out completely now, a market source tells me.
Combined with an in line trading statement yesterday, that should now open the door for BEG shares to re-rate, if buyers have the appetite to chase them higher. The dividend yield appeals at 6%, as does a PER of 6 - it's not often you find a share where the PER is lower than the dividend yield.
I've looked through all the other announcements for this morning, and there's nothing else that falls within my remit I'm afraid. It's mainly large caps reporting today, and resource sector announcements, which I don't cover. So it only remains for me to wish you a good weekend, and sign off for the week.
Regards, Paul.
(of the shares mentioned today, Paul has a long position in BEG, and no short positions)
