I find the tale of underperformance interesting too. They have done everything right and yet the SP has gone no where. Nice for us to pick up a few more at these prices and as you rightly point out the $24m may come in handy too.
I was holding myself at the ready yesterday morning,waiting to see if there was any buy catalyst in the agm presentation.Low and behold all the shares on the offer were sold before the agm started.!!
I saw no real reason to buy,so did not do so.We already have a reasonable holding.
I will remain at the ready, incase the share price weakens off slightly,when bond holders convert their bonds to shares at a discount, and sell the shares to realise their profit.
Totally agree with you that TNR have done everything right.
Hmmm they say boring is good..and produces an ability to fly under the investors radar.. but not everyones radar....TNR shareprice is nearly flatlined (<10% trading movement), has a small step up trend (series of mid to low $2.80's lows replaced by a series of mid to low $3.00's (Support Lines) The last 5 weeks there has been bullish accumulation activity pressures which increases the chance of the share price breaking the $3.15 resistance. The volume is low (exception 13th / 14th July and yesterday were above average) which makes this an illiquid stock, therefore adding some extra trading risk compared to others .eg HBL
There are no indicators on my chart for a reason (apart from the OBV) .. flatline prices creates unreliable indicator signals..If one must use indicators the oscillator type are the preferred option.
Bank stocks in general....ATM my mind is focused on the 2 main trading banks (ANZ WBC) which have downtrended -25% for 18 months now and looking like a "bottom" could be near ...HBL also trended down over the same period of time but in July it turned and rallied to a new high..TNR downtrend started at a similar time too but it has not move up either..
Looking at the basic fundamentals it seems the Major banks downtrend has created a negative sentiment to the level that comparing risk with AA and B banks it seems the market sector is currently fundamentally upside down..
The AA banks have a lower PE ratio, higher yield rate than the B banks ..so investors at the moment are taking TNR and HBL as a less risky investment...This either assumes the B rated banks TNR and HBL with PE Ratios of 13 and 14 respectively are expensive or ANZ and WBC both around 12 are cheap....In my personal view financial sector historically run at low PE Ratios ANZ WBC run at average of 12 so HBL TNR look expensive and growth must be assured to sustain their 13 /14 PE's.
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Thanks Hoop.
The important differences that I can see between HBL/TNR and ANZ?WBC are;
1] Both HBL/TNR will achieve eps growth of over 10% while ANZ?WBC will see little if any growth.
2]Both HBL/TNR have strong balance sheets and have no need for further capital,while ANZ/WBC have needed to strengthen their balance sheets by either selling off parts of their business,as well as/or raising capital.
3] Both HBL/TNR have very have very small bad debt writeoffs,while ANZ/WBC have worries with Aussie mining,retail,manufacturing,housing and NZ dairy exposure.
4]Both HBL/TNR are lot smaller companies,whose business models are better suited to online/digital growth,while ANZ/WBC are hampered by large expensive branch networks.HBL are seeing huge growth with their online products,in particular "open for business".I expect TNR will see the same sort of growth with Cartopia.
The market is waking up to HBL/TNR ,and charts comparing them to ANZ/WBC should be worth watching over the next year or two,as both HBL and TNR gain more market acceptance to their growth business models.
Yeah it seems the market is factoring in the changes...
HBL has rallied back...Percy do you think, smaller companies react quicker therefore become sector leading indicators..Is HBL a sector leader and is TNR due to rally?.. Could the sector majors ANZ WBC be laggers and follow later on?
Yes smaller companies are quicker to react than bigger companies,and enjoy higher growth rates should their business model be what the customers want.
ANZ/WBC, with their big branch network are like a super tanker trying to change direction,compared to HBL/TNR being speedboats,so I think they will be laggers.They will have to try and follow at some stage.
The market places both HBL/TNR operate in are changing very quickly.Both seem to have the business model to take advantage of thes changes,and profit the most, by having the products the market wants,by being ahead of the field..
HBL.I really don't know whether the dividend is driving HBL's sp, or whether the market is realising their online/digital products are ahead of the other lenders.Yet their online/digital offers the quickest growth model for lenders.
TNR are really taking buying a car to a new level with their Cartopia model.Sell the car,finance and insure it,and give a 7 day money back if the buyer is not satisfied.I would buy a car from them using Cartopia.
A plumber driving along the road after having his quote accepted needs finance to pay for equipment needed for the job.Spends a few minutes arranging finance on his phone,rather than trying to make an appointment to see his bank,when it suits his bank.
You need to buy Mrs Hoop the nice car she deserves.Rather than spending hours looking at car yards or doubtful sellers online, you find a suitable car via Cartopia. Brought,financed,insured all in a matter of minutes.What car dealer can compete?.
Six months ago I purchased an import from Turners as the first NZ owner. The car came with a full AA service and AA check, plus it was a grade 4 plus import ex Japan with a full Japanese service record. I reckon I paid $8k to $12k less than through what other dealers were asking for the particular model, and am very impressed. The car has been faultless. The TNR service and experience was first class. Not only does TNR have the financial clout you mention, it also must be a huge importer, which gives TNR huge buying power to secure the best deals.
Thank you for your post.
I think your first hand experience is confirmation Turners are ahead of the field.
The Buyright acquistion will further add to their buying power.
It will also add opportunities to add finance and insurance bolt ons in due course.
Perhaps Turners may expand the BuyRight brand to other centres.?