TUR - Turners & Growers

[k1w1]

KJ thanks for clarifying about Enza Foods not Enza being spun off. I still stick with my view that spinning off is more to make a buck than because it doesnt fit aka Turner Auctions.

Making a buck for shareholders is great. Its just that I suspect that the shareholders Gibb wants to make bucks for are GPG not T& G.

Just means that you have to be on your guard as a T&G shareholder and take everything they tell you with a grain of salt. My experience as a Tower and Capral Aluminium shareholder has taught me this. Basically you disregard what they say and do what they do and you will be okay.

I dont think Tony Gibbs gives a rats about improved shareholder liquidity I think its a bit more basic than that.

[KJ]

Fair enough Kiwi-good points.I am sure that they will have been giving thought for a while on a profitable exit for GPG from TUR.
Listing may flush out other interested parties.

[Gryffyn]

Probably another reason GPG price has been on the up last few weeks :-)

Disc: GPG

[Ted2]

quote:Originally posted by k1w1

KJ thanks for clarifying about Enza Foods not Enza being spun off. I still stick with my view that spinning off is more to make a buck than because it doesnt fit aka Turner Auctions.

Making a buck for shareholders is great. Its just that I suspect that the shareholders Gibb wants to make bucks for are GPG not T& G.

Just means that you have to be on your guard as a T&G shareholder and take everything they tell you with a grain of salt. My experience as a Tower and Capral Aluminium shareholder has taught me this. Basically you disregard what they say and do what they do and you will be okay.

I dont think Tony Gibbs gives a rats about improved shareholder liquidity I think its a bit more basic than that.

Buy GPG then!!!

[k1w1]

GPG didnt have that flash a year last year altho they retain the trust of the sharemarket as their share price shows. I don't think one year is all that important as basically these guys are the company equivalent of property developers. They buy something run down, fix it up and flog it off. Most of their current projects are still works in progress in my view, TUA is finished, CAA is not till next year, Coates is a real long termer. So this year if they want to make a wedge then T & G is where its going to happen. Thats why I decided to go T&G with my GPG money. Whats really interesting is how they maximise profit for themselves. They are not scared to let a SP fall as they buy more, or of rights issues.

Something clever may be about to happen judging from the GPG share price.

[warthog]

quote:Originally posted by k1w1

GPG didnt have that flash a year last year altho they retain the trust of the sharemarket as their share price shows. I don't think one year is all that important as basically these guys are the company equivalent of property developers. They buy something run down, fix it up and flog it off. Most of their current projects are still works in progress in my view

Ron must have read your posting before he wrote his latest chairman's statement on the 25th of August where he says pretty much exactly this. Oh wait ...

So besides the obvious Coats, T&G and Tower projects, obviously in progress, is there anything else that couldn't be identified as a work in progress by your average 5 year-old?

[k1w1]

Warthog, Tower and T& G seem to be turned around to me. Capral is about a year away and Coates is a while to go as are some of the more minor ones.

In my five year old way I have decided that Tower and T &G will be where GPG make their profits in the short term. So I will try and get my return by directly investing in them rather than get it by the profits going back to GPG, get diluted in the Coates turn around, get the directors fees cut off the top, be paid in paper with bonus shares which dilute EPS and not rely that Coates will turn around.

The market sentiment, history and shareprice show that GPG is priced on the basis that it will succeed with its works in progress. My personal view is that if something does go wrong with Coates then the SP will be revisited as happened to BRY with its hotel project.Even if it doesnt go wrong its a big turnaround with a large number of things that could take more time than first thought.

Its a risk I can eliminate by moving out of GPG in the short term and directly into its two projects most likely to be successful this year and be rewarded by the market.

If I am wrong and T&G and Tower dont make substantial returns for shareholders then I lose my gains from holding on to GPG. Although I have the insight of a five year old I promise not to cry if this happens.

[Gryffyn]

Good on ya for having a strategy and going for it. I'm convinced about TWR, don't know enough about T&G but also have money in GPG - directors fees or no, they have grown my investment handsomely.

[warthog]

Now now. Maybe I was too caustic, in my own, patented, 5 year-old way

I would say all of these are still in turnaround mode in that a business isn't turned-around until it's back manking healthy profits, as opposed to bleeding money. But I would agree that Tower and T&G are at later stages.

I don't know anything about Capral...pray tell.

quote:Originally posted by k1w1

Warthog, Tower and T& G seem to be turned around to me. Capral is about a year away and Coates is a while to go as are some of the more minor ones.

In my five year old way I have decided that Tower and T &G will be where GPG make their profits in the short term. So I will try and get my return by directly investing in them rather than get it by the profits going back to GPG, get diluted in the Coates turn around, get the directors fees cut off the top, be paid in paper with bonus shares which dilute EPS and not rely that Coates will turn around.

The market sentiment, history and shareprice show that GPG is priced on the basis that it will succeed with its works in progress. My personal view is that if something does go wrong with Coates then the SP will be revisited as happened to BRY with its hotel project.Even if it doesnt go wrong its a big turnaround with a large number of things that could take more time than first thought.

Its a risk I can eliminate by moving out of GPG in the short term and directly into its two projects most likely to be successful this year and be rewarded by the market.

If I am wrong and T&G and Tower dont make substantial returns for shareholders then I lose my gains from holding on to GPG. Although I have the insight of a five year old I promise not to cry if this happens.

[k1w1]

Actually Warthog it was quite clever and made me think about what I was trying to say.

If Sir Ron says they do turnarounds thats good enough for me. I am not trying to be original when I restate that. My point is that these guys try to organise things so that profits are harvested in a way that makes for market pleasing annual results, profits, bonus payouts and shareholders happy to be paid in scrip.

The next decent size candidates ready for market appear to be Tower ad T & G. Capral is CAA in Australia. Its about a year away. They manufacture aluminium extrusions. GPG bought in when they were making a loss due to imported products. The numbers were crunched and it was worked out that a highly mechanised factory could turn out the product with a small labour force ( hence no need to relocate to China )in a way that would be highly profitable on current product prices.

So the factory was commissioned and built in Brisbane and redundancies were paid out to most of the staff and management in Sydney. Just like Tower GPG then grouped together a lot of one off bad news and put out a head shaking, this is a sick puppy we need a capital raising issue which they underwrote and ended up with a larger number of shares at lower prices, in advance of the good news starting to flow. The trick was just like with Tower. Do what GPG do, not what they say, and put up more cash , you will end up fine. Not quite so fine as the big shareholders mind you, but still just fine.

So when I look at T & G they arent all that gee whiz wow to me . Why are GPG listing now , and why not an IPO?

I don't believe all that market speak they gave for it. I am looking for a move that will benefit GPG at least as much as it does T & G.