Originally Posted by
Fiordland Moose
Yes I appreciate the irony of it being centred around used car sales and my view of it. Blue chip might be a smidge generous in that respect (IE not in the same externally viewed esteem as the likes of EBO, SKL, FPH etc) but I do believe its got a fit for purpose business model (integrated across dealership, finance, insurance, debt collection, with the best sourcing model in NZ, leading marketing, and property portfolio and site development programme) and a growing footprint allowing it to take share, management alignment with shareholders, focus on profitability and dividend distribution evidenced by being one of the few companies to make quarterly distributions, etc. So I retain my view that its a high quality stock and a high quality business, and am happily able to look through the 'used car veneer' into the underlying business and financial characteristics of the business.
But re your investopedia definition:
1) TRA have a dominant national position and brand within the used car segment
2) It has high customer satisfaction and sells widely accepted products and services
3) It does have a good and reputable brand that has been built and maintained over many years - has made great strides in developing the Turners Automotive brand over the last 5 years
4) It is operating very well despite adverse economic conditions (record year profits in FY23)
Seems like a tick against most of them?