I'm really hoping you mean 3.25.... That will make me happy.
RSI does indicate that but is that because they're about to deliver a shocker ? I guess you can draw some comfort from their forecast and their continuous disclosure requirements although how good their governance is when the chairman doesn't have the courage to even show up at the annual meeting and face the music (barking), is anyone's guess. Its cheap on a PE basis and gross yield I'll give you that, but the question is, is it cheap for a reason and is the board dysfunctional ? (deputy chair looked for all intents and purposes like he'd been thrown a hospital pass at the very last minute when chairing that meeting).
I am really at a loss on why you enjoy these divies so much. While you are enjoying 6% divies your capital has reduced 22% in the past 12 months. Every month your capital is being severely eroded. It looks like you would be better off to have the cash in your bank and make a withdrawal every quarter. That way you get some cash as well as a small erosion in capital - offset by any interest gained from your account.
LOL I think that's where he was at the last annual meeting. Probably saw the institutional voting and proxies and knew he was getting the increase and was relaxing in his lakefront villa looking out over lake Geneva thinking I don't need to front that angry Beagle...just let him bark his head off and let the poor deputy chair face the music.
The shares are actually down more than 33% from their high ~ 12 months ago. Some people who have held the whole way have to keep telling themselves the long term story is great. Others took measures to mitigate their losses and are taking a more realistic view on Turners prospects. I leave you to judge who you think is more sensible.
I focus more on the medium and long term Beagle. With hindsight I should have redeemed my TRAHB bonds in cash and bought the shares on market this week (although I was pleasantly surprised to collect my November dividend on shares so recently converted). I should have been 'really mean' with my bid and bought on market at $2.57, not the $2.77 I did. But I find it is best not to be too focussed on getting my TRA shares at the absolute optimal purchase price. Rather I make sure I actually do get around to buying them at a yield that is acceptable to me. When the shares climb above $3.50, I won't be too worried if I bought at $2.57 or $2.77. If others can buy at an even better yield later good luck to them. I wouldn't have bought at the price I bought if I wasn't happy with the yield at my purchase price.
Bad MTF loans may take time to fully decay from the loan book, true. But with the big jump in provisioning last year ('Impairment Provision' up from $2.026m to $6.380m), I expect that new provisioning to cover multiple years of losses going forwards will not be needed. Unlike you, I don't expect any more MTF loan provisioning in the next 18 months. Consequently there will be no effect on profit going forwards.Quote:
Some people are conveniently overlooking the fact that those problematic / delinquent MTF loans will dog this company for at least this and the next two half year reporting periods.
Pretty sure Albany is rented. I expect they will reconsider their occupation of the Albany site when the lease expires. Same thing with the 'Tower Junction' site in Christchurch. Turners are now looking for 'more land' and 'less buildings' (= cheaper rent) on the future sites they occupy. But at the Christchurch Road Show, Todd seemed to be equivocal on whether they move or not. They will only move if the right site comes up. They will let the lease(s) expire and see what is available. I detected no panic to move from either the Albany or Tower Junction site.Quote:
They have a big site in Albany, I don't know how long the lease is or whether they own it but its a large site adjacent to the northern motorway and very poorly positioned in terms of attracting retail traffic. All good to talk about new sites and expansion but how many of these sort of more unfavorable sites do they have and how long does that legacy continue for ?
As Winner has already noted, insiders aren't allowed to buy TRA shares until the half year results are announced to the NZX.Quote:
If the shares are such a raving bargain and the directors thought so when they were 30-40 cps higher why aren't they buying in decent or any volume now ?
SNOOPY