Market's view on Vanquis Banking
Published on April 2024
- Stock watchers have noted the company’s net asset value of £1.70 per share is significantly higher than its current market value.
- Concerns are raised about the company’s management of its cash position which exceeds its market capitalisation, prompting discussions on whether the company should be liquidated for a potentially higher share value.
- Discussions involve a recent scenario where large volumes of shares were sold, questioning whether this indicates the seller has cleared.
- Observations are made regarding the Board of Directors buying shares at around 56p, suggesting some internal confidence in the company’s valuation.
- Market movements are tracked, noting a potential buying opportunity with the stock price moving within a certain range.
- A significant drop of 6% from the daily high to the close was monitored, influencing considerations for new investment.
- The stock’s price movement above its 20-day moving average is highlighted, with potential targets set for its 200-day moving average at 116p.
- The ongoing FSA investigation into the car finance sector and its implications for Vanquis, a part of the company, is causing some concern among stock watchers.
- Speculation exists about the stock price being artificially kept low to allow for accumulation of a larger position, alongside theories of a prospective takeover bid.
- Comments point out strange trading patterns, where despite increased buying, the stock price continues to fall, preventing it from rising above certain thresholds.