You may yet get another chance to top up at $2.14?
Buckle up as car sales experience a bumpy ride
Quote:
Around the world, car sales are declining. From the United States to China, car lots are suffering from increasing unsold inventory. In China, for example, automobile sales fell 13.9% in November from a year earlier, the steepest such drop in more than six years, and for 2018, car sales recorded their first annual fall in two decades, declining 6%.
Yes new cars become used cars.
Turners buy a lot of NZ new used cars.Have to as they do not sell new cars.
They also import a great number of used [approx 6,000 a year] from Japan,so I can't see where you get your relevance from.
They can import more or less, depending on demand.
Try to think of Turners as the finance company that owns NZ biggest used car dealer.
Low interest rates and low unemployment,together with an expanding foot print should mean Turners are trading OK.
I expect their finance division is still growing,as is their insurance division,and end of vehicle life logistics business.
The surprise may be their property division.
Worth pointing out Minimum Wage increases significantly in a few days with it rising to $20 in a couple of years. This will have the effect of applying a General Wage order - the one tide will lift many ships. Plenty of head room for people to take on additional debt to purchase car
Turners might still be paying a divie that attracts and holds the long term investors, but technically it's a dog and as we know management and directors have little sway over SP market sentiment. It has smashed a whole lot of investors capital, including that of some who love this company and bought up big a while ago just for the income. Assuming they don't have to sell, I guess it's all fine.
In July 2017 the SP topped at $3.97 after a two year recovery from a prior reversal. Since then it's been all downhill even recently faltering at the common resistance of the 50MA. Currently at $2.25 it's a 50%+ loss of capital. You'd have to be pretty committed to that income and safe from having to sell your shares to be dedicated to this decline in SP sentiment with no sign of a recovery anytime soon. Or have faith in the company and be patiently waiting for a low SP to buy into the income,
That's what sorts the income focused from the capital focused investors, one is immune to SP fluctuations for purposes of income, whereas the other is very sensitive to retaining and growing their capital.
A mate reckoned he saw this on a white board at Turners ...probably from their last strategy meeting
Maybe the thinking around how they think they could make clipping the ticket actually generate real profits
All this ticket clipping imo is because company cannot make ends meet by just selling USED cars so dabbles into anything to make profit...
Maybe they could add a Lunch Bar or two on the new sites