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

[hilskin]

http://www.sharechat.co.nz/article/e...m-chairmanhtml

[percy]

I was very impressed that DPC tied up the Bartel Holdings shares.
I brought in this afternoon at 23.5cents.

[biker]

I was very impressed that DPC tied up the Bartel Holdings shares.
I brought in this afternoon at 23.5cents.

nice timing percy.

[Okebw]

Prospectus for the turners takeover bonds is out.
They have no intention to list the so I suppose this belongs here rather than the NZDX section.

The bonds are 2 year 9% with quarterly payments and a conversion option.
I'm fairly keen to apply for some but if anyone with insight in to the business/default risk wants to chime in it would be greatly appreciated.

and yes I'm aware that given the small size of the issue and that turners/Dorchester shareholders get priority odds are I won't get any anyway.

https://www.nzx.com/files/attachments/199326.pdf

[percy]

Well today's market update had the "smell of money" about it to me.Doubled my holding at 25cents this afternoon.

[noodles]

Well today's market update had the "smell of money" about it to me.Doubled my holding at 25cents this afternoon.

I agree Percy. It is a continuing pattern of upgrades at DPC. Some more colour is given in the RNZ interview. http://www.radionz.co.nz/national/pr...nings-guidance

But of more interest to me was the details about how the acquisition will be funded. From this I can calculate a normalised pe for FY16 (year ending 31 march 2016)

First some assumptions:
1. DPC get 100% ownership
2. All Convertable notes are converted

Additional Capital raised based on 100% ownership $48mill @25c per share. I included the convertible notes in my eps calculcation. I know this is not technically correct, but they will probably convert at a later date. In any, case, the number of shares on issue should reflect this.

The number of new shares issued = 48Mill/.25c= 192mill shares. Add this to the existing shares and we get 685mill shares

Now the profit. DPC stated here that NPBT for FY16 with 100% ownership is $25mil
https://www.nzx.com/companies/DPC/announcements/253161

While they won't pay full tax that year, I'm going to assume they do to get a true reflection of underlying profit.
So NPAT = 25*(1-.28)= $18mill

This gives me an eps of 2.62c

And a pe of 9.53 (at current share price of .25c)

For me a pe< 10 in a growth company is rare.

DISC: Holding

[percy]

EPS 2.62 cents.
Thanks for working out the fundamentals.
I very much doubt such a growth company, with increasing capacity to pay higher dividends, will stay on a projected PE of under 10 for long.
All the "one offs" etc, will certainly strengthen the balance sheet.
Feel as though we are "well positioned."

[noodles]

EPS 2.62 cents.

Thanks, fixed that error

[biker]

EPS 2.62 cents.
Thanks for working out the fundamentals.
I very much doubt such a growth company, with increasing capacity to pay higher dividends, will stay on a projected PE of under 10 for long.
All the "one offs" etc, will certainly strengthen the balance sheet.
Feel as though we are "well positioned."

Agree Percy, and maybe ONE day the market will agree also!
I think there is money to be made here over the next couple of years, but I hold quite a few so I'm biased.

[Joshuatree]

Awesome noodles ; i really appreciate ( and i know many lurkers will tooyou doing this research and doing some figs; thanks JT.

QUOTE=noodles;503711]I agree Percy. It is a continuing pattern of upgrades at DPC. Some more colour is given in the RNZ interview. http://www.radionz.co.nz/national/pr...nings-guidance

But of more interest to me was the details about how the acquisition will be funded. From this I can calculate a normalised pe for FY16 (year ending 31 march 2016)

First some assumptions:
1. DPC get 100% ownership
2. All Convertable notes are converted

Additional Capital raised based on 100% ownership $38mill @25c per share. I included the convertible notes in my eps calculcation. I know this is not technically correct, but they will probably convert at a later date. In any, case, the number of shares on issue should reflect this.

The number of new shares issued = 48Mill/.25c= 152mill shares. Add this to the existing shares and we get 685mill shares

Now the profit. DPC stated here that NPBT for FY16 with 100% ownership is $25mil
https://www.nzx.com/companies/DPC/announcements/253161

While they won't pay full tax that year, I'm going to assume they do to get a true reflection of underlying profit.
So NPAT = 25*(1-.28)= $18mill

This gives me an eps of 2.62c

And a pe of 9.53 (at current share price of .25c)

For me a pe< 10 in a growth company is rare.

DISC: Holding[/QUOTE]