Haha so did I! Bugger trying to make ones weighted average cost look as low as possible. Each morsel is its own discrete investment. Nice place to put some dough
Interesting on the webinar their answer to the EV vs ICE question. Basically went as follows:
Q. what is the risk to TRA with the move from ICE vehicles to EV. Could TRA get caught out with too much ICE vehicle stock.
A. (CFO) the entire stock rotates every 2 months. We see the change from ICE to EV having negligible risk to TRA.
I asked the question re EV vs ICE at the webinar today, as I was a bit worried about it. I was pleased with the high turnover rate, but there may still be some hidden issues around this, so I will have to give it some thought. Given the government tax on petrol imports that kicks in next year, I think we will see a spike in petrol car sales before the end of the year, particularly in Auckland. On the whole, I like the team at Turners and think they have done really well.
they commented last session in effect that the average turnover was 1 month and that lines up in my model with revenue numbers. I would like to check that again though. there are about 3000 cars on stock, if they sell all in a month, then that’s 9000 sales/quarter, $118m Auto revenue equates to $13,000 per car sold. The average car sale price at Turners is unknown to me, does anyone have a feel for that? $13k seems a bit low?
The average can be 1 month with the distribution being up to 2 months, consistent with the CEOs comment.
$13k must be on the low side these days.
More like $17k?
From 2019 agm presentation.
NZ’s largest buyer and
seller of vehicles
33
Locations in NZ from
Whangarei to Invercargill
9%+
Gross dividend yield within the
top 10 yielding stocks on NZX
6 mins
Turners sell 1 car every 6
minutes, which equates to
over 100 cars per day
200
We sell over 200 insurance
policies per day
900
We employ over 900 kiwis
across the business
40
We write over 40 consumer and
commercial loans per day in
Oxford Finance
$6m debt
Collecting over $6m per month of hard
to collect debt
Yes Percy, 100 cars per day is close to 3000 per month which is close to their average stock level.