TRA - Turners Automotive Group [previously TNR - Turners Limited]

[peat]

milford sold a lot of shares recently obviously into the buy back

https://www.nzx.com/announcements/336827

they sold just under a million shares in the marked

time

TRA28-06-2019.JPG

its obviously bad they sold one percent of the company.
they still have just over 5% though.

share price has been down then up and now about the same as when they started selling.

buy back obviously supported the price but it wouldn't appear to be the only thing doing so.

hmmm.

[bull....]

Turners invest in AUS car subscription and sharing business

https://www.nzx.com/announcements/336956

[bull....]

heres some info on the company they are buying a s/h in

cl8 on the ASX a company that is worth 1c share price thats right 1c highly successful obviously and in desparate need of cash

heres a presentation of drivemy car

https://www.asx.com.au/asxpdf/201905...8njtn1b9f6.pdf

[SilverBack]

Best of luck to Turners. CL8 has been steadily declining for the past 2 years with a market cap of $7.2M prior to Turners announcement. DriveMyCar? Blow that, go and get your own.

[GTM 3442]

New Zealand company moving into Australia?

Based on history - no thank you!

[bull....]

Best of luck to Turners. CL8 has been steadily declining for the past 2 years with a market cap of $7.2M prior to Turners announcement. DriveMyCar? Blow that, go and get your own.

lol heres some more info

the funny thing about the investment is collaborate say is the auto market is being disrupted , dealers margins on new and used car sales are declining.


younger people dont want to own cars just want flexible access to cars thats the market for us , subscription service.


by 2025 major car manufacturers will offer subscription service on new cars.

So are TRA investing just in case they are disrupted?

and

yet in there cashflow statement ,, problems they say drivemycar

competitor discounting affected our demand , the large players discounted to unrealistic pricing levels this is not sustainable in our view.


so turners are going to learn from a company that is struggling to survive?


https://www.asx.com.au/asxpdf/201904...mkvwtx1sb7.pdf

[BlackPeter]

heres some info on the company they are buying a s/h in

cl8 on the ASX a company that is worth 1c share price thats right 1c highly successful obviously and in desparate need of cash

heres a presentation of drivemy car

https://www.asx.com.au/asxpdf/201905...8njtn1b9f6.pdf

Nice presentation.

Actually - one could argue that the performance of CL8 and TRA is correlated ... though TRA (the blue line) lost only 35% in the last 2 years and CL8 (the orange line) lost in the same timeframe 70%:

TRACL8.PNG

But then - who knows, maybe the cunning TRA board did just wait until CL8 bottomed out and all is up from here?

But irony apart - the investment might strategically well make sense for TRA if we see them as a car dealer looking for diversification in their field. Car sharing is clearly one of the identified risks for them.

It is just - it does not look like their last strategy (one stop shop for used car buyers) was particularly successful, i.e. the markets probably just need to first gain some confidence that after their recent strategic turn they are suddenly doing all the right things ...

[percy]

Turners current market cap is over nz $204 mil.
The 12.13% of CL8 is costing them au $1 mil.
Feeling the water by putting their small pinking toe in.
If they loose the au $1 mil I expect Turners will survive.

[BlackPeter]

Turners current market cap is over nz $204 mil.
The 12.13% of CL8 is costing them au $1 mil.
Feeling the water by putting their small pinking toe in.
If they loose the au $1 mil I expect Turners will survive.

I think you are right.

Still interesting that TRA's (car selling) and CL8's (car sharing) performance appears to be sort of correlated, but maybe the common factor lies somewhere else. Any ideas?

[SilverBack]

No doubt Turners want to use the CL8 software to market the sharing facilities in NZ. Whether or not they use the DriveMyCar brand or adopt their own remains to be seen.