Jeez, Turners dish out the cash pretty regularly eh
Shout myself something tomorrow
Jeez, Turners dish out the cash pretty regularly eh
Shout myself something tomorrow
Craigs is optimistic about TRA in their latest report. They make up 10% of my portfolio. Growth and a good dividend return. What else do you want?
I distinctly recall them not being so previously (when the share price was a lot lower).
However it is good for holders when a major broker who controls a lot of wealth says nice things, and just maybe they mean it.
Although, perhaps they loaded up when they were dissing it and are now selling into the rally. You never know.
Enjoy the 2nd hand car market boom while these chip shortages exist for at least another year yet IMO...also from Bloomberg...
"Take a look at cars to see the extent of the impact of supply chain shortages and the inventory drawdown on the GDP figure. We know that a shortage of semiconductors has hit car production and helped spark the surge in demand for used cars that has pushed up inflation. If fewer cars are being produced, then existing inventories of vehicles get drawn down to satisfy demand. Domestic auto inventories in the U.S. are now at their lowest since records began in 1967. By Barclays' estimates, motor vehicles accounted for about half of the total decline in U.S. inventories in the second-quarter. That means if the semiconductor shortage were to ease, you might expect to see a sizeable restocking of cars, which would in turn add a lot to GDP.
Here's why it's going to take another year at least, also from Bloomberg:
The Chip Shortage Keeps Getting Worse. Why Can’t We Just Make More?
https://www.bloomberg.com/graphics/2...d=premium-asia
Further delays favouring used car sales:
"Chip shortages that have held back automakers and computer manufacturers are getting worse. Chip lead times, the gap between ordering a semiconductor and taking delivery, increased by more than eight days to 20.2 weeks in July from the previous month. That gap was already the longest wait time since the firm began tracking the data in 2017. Shortages of microcontrollers, logic chips that control functions in cars , industrial equipment and home electronics, jumped in July."
https://www.nzx.com/announcements/377149
Looking good into the future. Hoping to achieve a 25 cent fully imputed dividend by FY 2024 and the mention of how they paid FY2021 a 20 cent dividend, vs guidance of 18 cents.......... Maybe FY2024 will be a 27-29 cent dividend after their comment of FY 2022 has started well.... Glad to be onboard this train.
Great presentation. Very credible plan for growth with a solid brand in a market dominated by small yards. Easy pickings with new retail openings planned. Great diversification with finance, insurance and credit risk businesses as well. Interesting move towards more NZ purchases not imports. Second hand car demand will stay high with our ageing fleet. I know from experience it is getting really hard to sell privately as everyone needs finance these days. Ended up at Turners to quit the car.
Few chart crimes lol :p
Look to be doing well, but in all honesty there is a bunch of these businesses that have uneven track records (WHS, MHJ, TRA) and have all claimed to have "transformed", but in reality management are claiming credit for factors outside their control. Question is will they be doing as well in 3 years time when the borders are open and all the trapped capital is released (and Beagle has migrated).
MHJ's transition to stardom will be temporary, the others success will be FAR more enduring, you read it here first :)
To be fair TRA has changed the most by a mile:
- Rebrand of Buy Right Cars
- Move from mega sites to smaller yards
- Oxford changed from a tier 3 lender to tier 2.
MHJ and WHS just store/warehouse rationalization and getting better online. Don't get me wrong its working a treat. But TRA transformation the biggest and best and will be a great compounder for the next decade imo.
WHS failed transformations- warehouse extra. Aus expansion- Silly Sally's(?) purchase.
MHJ failed transformation- purchasing bankrupt US jewelry chain during GFC.
My view is the WHS & MHJ current 'transformation' is the cost of staying in the game as you say. Good stuff thou- management should be tweaking the company to stay with the times.
New TRA feels genuinely transformed from old TRA.
Silly Solly's
Do you recall Michael Hill Shoes --- lasted 3 to 4 years
Michael Hill Shoes
In 1992, the company was ‘looking for a second string to their bow’ and diversified into the footwear industry. MHI settled on shoes, which ‘seemed to possess the right qualities, and [the shoe industry’s] position in 1991 was very similar to where the jewellery market had been when we began to expand our first chain of stores’.8 The board decided to run the shoe business along the same lines as the jewellery business, and believed that existing company infrastructure and office systems would support the opening of a new division. MHI bought three high-end shoe stores in Christchurch from retailer John Craig, who stayed on as manager of the new shoe division.
Hill outlined plans to rename and expand the chain throughout New Zealand, and stock mass-market, mid-range footwear rather than the expensive Italian shoes previously stocked by Craig.9 The company opened a further six Michael Hill Shoes shops throughout New Zealand (including Auckland and Wellington) — many of which were next door to the Michael Hill Jeweller stores. The new stores were fitted out in green and gold, and Hillfronted television advertisements using shoes as props. Michael Hill Shoes initially reported a net profit of NZ$3.3 million but by 1993 company net profit had dropped to NZ$2.8 million, andMichael Hill Shoes reported a loss of NZ$1.11 million.
The stores never realised the revenue required, which meant profit expectations did not eventuate. The jewellery business in New Zealand was starting to ‘level off’, and profits were not being boosted by the shoe stores as expected.10 Shoes were also different from jewellery in key ways which proved challenging for the supply chain — shoes were more cumbersome to ship and had a much faster seasonal turnaround. In February 1994, the board announced that the shoe shops would be closed and allstock sold off. Michael Hill Shoes reported a loss of NZ$2.9 million, including a trading loss of NZ$1.38 million and a capital loss selling the shops of NZ$636 000