TRA - Turners Automotive Group [previously TNR - Turners Limited]

[ziggy415]

Ziggy415,
You have made my day.lol.
Yes.
Dorchester took over Turners Auctions and retained the Turners name.

So heartlands stand for 20% was for ex dorchester...now i see

[Snow Leopard]

So heartlands stand for 20% was for ex dorchester...now i see

I thought that was for Turners & Growers !

BW
PT

[Snoopy]

Yes quarterly fully imputed dividends are most welcome in our household.!
I did find the section "addressing the value gap" in the agm presentation interesting.

If we accept Hoop's calculation that both TNR and HBL are now on a similar PE of 13-14, well above the big 'A' grade banks, I have to say

"What value gap exists for TNR?"

The earlier higher rating for TNR (on an earnings basis) was in anticipation of a return to a more normal level of profitability and the anticipation of imputation credits. Both of these events have now happened. So PE ratios have reduced to more 'normal' levels (still high in historical finance industry terms).

The TNR share price will only grow if earnings per share grows. Many of the TNR acquisitions have come with the issue of new shares. If the percentage incremental increase in profit from an acquisition is not greater than the concommitant increase in shares as a result of the acquisition, then the share price of TNR will not grow! This is how 'financial maths' works. Over the past four years it looks like the shareholder capital has increased by around 400% (slide 8 AGM presentation). The vast majority of this increase is new capital fed into the business by conversion of bonds to equity, or just issuing new shares as part of making acquisitions.

I had forgotten that TNR shareprice had underperformed the market for the past year or two.

It is not uncommon for a share with very high expectations to underperform the market when the real financial value of these expectations finally sees the light of day.

I would be much happier if TNR stopped worrying about any perceived 'value gap' and just got on with running the business. Granted they may have to explain the 'hybid nature' of this 'finance' company to new analysts. But if they just got on with runninng the business well, meeting and slightly exceeding their own budgeted projections, then Mr Market will take care of any 'value gap' in time. Admittedly TNR managment do seem to know how to run their core business well.

SNOOPY

P.S. Vote Labour! Not really sure why except the more people in the wider population that feel they are doing well the more vehicles TNR should sell. This comment seems to fit with the random nature of discussion developing.

[percy]

From today's announcement;
New Bond Issue.......................................$25.56 mil
Capital Raise............................................$ 12mil
Conversion of 2014 Bonds..........................$17.4mil
................................................TO TAL......$54.96mil
What does this mean?..................................FUN.!

[percy]

From today's announcement;
New Bond Issue.......................................$25.56 mil
Capital Raise............................................$ 12mil
Conversion of 2014 Bonds..........................$17.4mil
................................................TO TAL......$54.96mil
What does this mean?..................................FUN.!

I may be jumping the gun,but it looks to me as though those bond holders who sold their shares, and made a margin converting their bonds to shares, are now out of the market.
This means the new upward sp trajectory is now underway.!!!

[blackcap]

I may be jumping the gun,but it looks to me as though those bond holders who sold their shares, and made a margin converting their bonds to shares, are now out of the market.
This means the new upward sp trajectory is now underway.!!!

Do you think that was what was holding the price down Percy? I am guessing a lot of these "bond" holders were not long term DPC shareholders even though DPC also was largely Turners. So there is some validity to that statement. I guess Snoopy's angst over the last 2 years whether to invest or not in "DPC" may be representative of old Turners shareholders. So that could well be the case. Being lazy here, but when did the bond holders get shares on their statements? So how long have they had to sell?

[percy]

Do you think that was what was holding the price down Percy? I am guessing a lot of these "bond" holders were not long term DPC shareholders even though DPC also was largely Turners. So there is some validity to that statement. I guess Snoopy's angst over the last 2 years whether to invest or not in "DPC" may be representative of old Turners shareholders. So that could well be the case. Being lazy here, but when did the bond holders get shares on their statements? So how long have they had to sell?

Please excuse me for not being exact,but I think the "old" bonds converted 30th September,and I take it the "new" two year bonds have just been issued.I say that, as a Trust I help out on applied for bonds.I rang the broker yesterday and The Trust got what was applied for,but I had not seen a contract note.
Yes ,there was a margin there, which I think was taken advantage of,which kept the sp down.
We now have two brokers researching TNR,FNZC,and today Craigs published research. This coverage should bring TNR's story to a wider number of investors.As we know the story is compelling, we remain "well positioned."

[DarkHorse]

A recent buy for me, few great value NZ stocks left but this is one.
A nice quote from Craigs report:

We prefer TNR relative to other small NZ industrial stocks, given its defined growth strategy
which, if executed, could see the stock transform into a mid-cap. Additionally, TNR’s growth
options are mostly internal driven and focused on making share gains in its core sectors - which
are large and fragmented. This is quite different to other NZ industrial small caps whose
investment cases are highly exposed to both economic and commodity price cycles.

[blackcap]

Please excuse me for not being exact,but I think the "old" bonds converted 30th September,and I take it the "new" two year bonds have just been issued.I say that, as a Trust I help out on applied for bonds.I rang the broker yesterday and The Trust got what was applied for,but I had not seen a contract note.
Yes ,there was a margin there, which I think was taken advantage of,which kept the sp down.
We now have two brokers researching TNR,FNZC,and today Craigs published research. This coverage should bring TNR's story to a wider number of investors.As we know the story is compelling, we remain "well positioned."

Looks like you were right about the selling drying up there Percy, or maybe its the impact of the Craigs research. Either way its good to see the SP move up to 3.25.

[percy]

Looks like you were right about the selling drying up there Percy, or maybe its the impact of the Craigs research. Either way its good to see the SP move up to 3.25.

More shares traded today than I thought.88,235..TNR with VWAP price of $3.2437 being total value $286,207.
The bonds also traded today.50,000... TNRHB with VWAP price of $1.00 being total value $50,000.