05/03/2024 09:45

Virgin Money UK Plc (VUK) $3.03

The question around VUK is whether or not it’s a value trap, trading cheap on all key metrics with a PE of 5x and a price to book of just 0.4x. UK economic outcomes have been much better than feared, similar to ours, but VUK has a history of underwhelming, especially when compared to the much loved “Big Four” in Australia.

Read more

01/08/2023 09:51

The “unloved” stocks are catching a bid, who could be next?

We have already missed a couple of opportunities where stocks which have been struggling over the last 2 years sprang back to life with a vengeance, one we even discussed days before it rocketed higher. However, we don’t find this disheartening more a confirmation of the trend we are expecting to unfold through the 2H.

Read more

30/06/2023 09:11

Virgin Money UK Plc (VUK) $2.83

UK based VUK has fallen -13.7% so far this year making the stock cheap as it traded on 4.9x estimated earnings for FY23 plus an estimated yield in excess of 7% over the next 12 months is not to be sniffed at. We definitely prefer VUK over the Australian regional banks for investors who are looking for some deep value, high-beta exposure to the Banking Sector.

Read more

24/01/2023 09:16

1 Virgin Money UK Plc (VUK) $3.41

VUK has soared over 65% over recent months but it’s starting to feel exhausted around $3.50 i.e. a rest is potentially needed but we expect buying to emerge into weakness after November’s strong result. VUK remains one of the cheapest global banks trading ~0.5x price to book, for context CBA is the most expensive trading above 2.5x.

Read more

22/11/2022 17:07

Virgin Money UK (VUK) $2.81

VUK +10.63%: Rallied strongly overnight in the UK and today in Oz following a strong FY22 result that showed impressive leverage to rising interest rates. Their 2H22 profit before tax (PBT) result of £401m (£789m for FY22) was 7% ahead of consensus.

Read more

29/09/2022 09:05

Virgin Money UK Plc (VUK) $2.19

VUK has now fallen -48% from its 2021 highs and while it scans extremely cheap compared to its peers it is based in the UK which is likely to see ongoing volatility across its related financial markets as the government cuts taxes while at the same time the BOE hikes rates and now buys bonds = an unfathomable arm wrestle which we feel is best avoided.

Read more

02/09/2022 09:12

Virgin Money UK Plc (VUK) $2.51

UK-based bank Virgin Money (VUK) isn’t a stock we are likely to buy through the backend of 2022 but as we monitor National Australia Bank (NAB) and the financials in general VUK is starting to represent an excellent leading indicator for the sector and most importantly risk/reward opportunities i.e. we are neutral around $2.50 but if we see...

Read more

05/08/2022 09:38

Virgin Money UK Plc (VUK) $2.69

VUK rallied over 4% on Thursday helped by Macquarie’s upgrade on the UK-based bank to outperform the day prior, this feels like another stock that has garnered a bid after a little positive news as fund managers find themselves looking for our of favour,  deep value opportunities.

Read more

08/07/2022 09:18

Virgin Money UK Plc (VUK) $2.33

VUK has really struggled through 2022 falling 48% at its worst and while the UK operating bank is very cheap compared to Australian names we shouldn’t forget that CBA, NAB et al are expensive from a global perspective. Unfortunately, we believe that VUK will continue to deliver lower margins & profitability, especially when compared to its Australian peers, and the share price illustrates that the market agrees with us.

Read more

11/05/2022 14:34

Flagship Growth Portfolio – Amendments

We are selling Virgin Money (VUK) and adding to existing positions in Macquarie (MQG) & TPG Telecom (TPG)

Read more