sharetrader
Page 257 of 840 FirstFirst ... 157207247253254255256257258259260261267307357757 ... LastLast
Results 2,561 to 2,570 of 8391
  1. #2561
    Advanced Member
    Join Date
    Apr 2008
    Location
    Kerikeri
    Posts
    2,468

    Default

    Quote Originally Posted by Beagle View Post
    Best guide in terms of percentage converting to shares is probably that we look at the last time this happened and in 2016 75% of bondholders elected to convert to shares.
    I bought a decent quantity of the bonds. At the time I was looking for more shares, but thought they were over priced. My thinking was that if the conversion was attractive, and I still liked Turner’s, I would convert to shares. At this stage I still plan to do that. There may be a few more like me?

  2. #2562
    On the doghouse
    Join Date
    Jun 2004
    Location
    , , New Zealand.
    Posts
    9,221

    Default

    Quote Originally Posted by minimoke View Post
    You may have missed this nit "
    With a tight labour market and requirements for more resource Turners are
    working hard to make sure they are an employer of choice and will continue to
    attract the right sort of people. We continue to measure and focus on
    improving employee engagement, a commitment to ongoing workplace diversity,
    building a culture of developing people and promote from within
    I wonder how far 'improving employee engagement' goes against the best interests of consumers?

    Here is some Sunday evening reading about "Car loan commissions and consumer credit regulation" over the ditch.

    https://financialservices.royalcommi...IBIT-1-187.pdf

    I see the Australian government has decided to actually ban the practice of 'flex commissions' by November 2018. ANZ sold most of their car loan business when they divested 'Esanda', but have suspended the remaining $2.5b of car finance business still on the books. Westpac by contrast is going all out making money until the legal gate finally closes. But of course, this kind of thing couldn't happen in NZ at little ol' Turners, could it?

    SNOOPY
    Last edited by Snoopy; 15-07-2018 at 03:55 PM.
    Watch out for the most persistent and dangerous version of Covid-19: B.S.24/7

  3. #2563
    Speedy Az winner69's Avatar
    Join Date
    Jun 2001
    Location
    , , .
    Posts
    37,737

    Default

    Snoops ....employee engagement if done properly is generally good for consumers ....they say ‘engaged’ employees deliver better solutions and experiences for customers (consumers) than ‘disengaged’ ones

    Mind you that bit you quoted is probably in most companies plans ...pretty close word for word.

    This Todd seems to have the charisma to lead an engaged workforce.
    Last edited by winner69; 16-07-2018 at 07:46 AM.
    “ At the top of every bubble, everyone is convinced it's not yet a bubble.”

  4. #2564
    percy
    Join Date
    Oct 2009
    Location
    christchurch
    Posts
    17,221

    Default

    Quote Originally Posted by Beagle View Post
    This Beagle is $4 so we're all thinking along similar lines but a fair bit of water to go under the bridge before we get there.
    A lot of water went under the bridge this weekend...……………………………...lol.

  5. #2565
    Guru
    Join Date
    Apr 2003
    Location
    Wellington, New Zealand
    Posts
    4,876

    Default

    Good to see Grant Baker purchasing another 50,075 shares on market on the 11th July, although I dare say this purchase was to make his holding a nice even 6,000,000 rather than anything else....
    http://nzx-prod-s7fsd7f98s.s3-websit...931/282885.pdf

  6. #2566
    percy
    Join Date
    Oct 2009
    Location
    christchurch
    Posts
    17,221

    Default

    My divie is in the bank.Thanks to the team at Turners.

  7. #2567
    Junior Member
    Join Date
    May 2017
    Posts
    15

    Default

    Quote Originally Posted by percy View Post
    My divie is in the bank.Thanks to the team at Turners.
    Likewise. And a nice rise in SP since initial purchase with more to come. Once again, pleased to have listened to the sage advice from members on this forum (with direct feedback from the CEO himself in this thread).

  8. #2568
    ShareTrader Legend Beagle's Avatar
    Join Date
    Jul 2010
    Location
    Auckland
    Posts
    21,362

    Default

    Quote Originally Posted by JCM View Post
    Likewise. And a nice rise in SP since initial purchase with more to come. Once again, pleased to have listened to the sage advice from members on this forum (with direct feedback from the CEO himself in this thread).
    Yeap you can't ask for more than that. My rating HHH (Happy hound holder)
    Ecclesiastes 11:2: “Divide your portion to seven, or even to eight, for you do not know what misfortune may occur on the earth.
    Ben Graham - In the short run the market is a voting machine but in the long run the market is a weighing machine

  9. #2569
    On the doghouse
    Join Date
    Jun 2004
    Location
    , , New Zealand.
    Posts
    9,221

    Default Capital Support for Loans

    Quote Originally Posted by Snoopy View Post
    I am changing my analysis this year so that the financial statistics that I am evaluating are applied only to the financial division of the company.

    I am applying a 'banking covenant' to a non-bank. While not a legal requirement for TNR, this is to enable a comparison with other listed entities in the finance sector (real banks like Heartland for instance ;-) ), so please bear with me. The data below may be found in the 'Consolidated Statement of Financial Position' (AR2016, p26).

    Tier 1 capital > 20% of the loan book.

    (Turners Group (Finance Division) has only Tier 1 capital for these calculation purposes.)

    Tier 1 Capital = (Shareholder Equity) - (Intangibles: less Turners Auctions Intangibles) - (Deferred tax: Assume finance division using up deferred losses)
    "Tier 1 capital > 20% of the loan book" is a Snoopy requirement

    In the past on this forum, I have been absolutely pilloried for demanding a 20% capital buffer to be held to back up the loans of a second tier lending institution. This is primarily why I will invest in Turners, but won't invest in Heartland, that has a rather lower capital buffer.

    Quote Originally Posted by Snoopy View Post
    Car loans supported by bank loans require Turners to hold on the books, shareholders funds based on 20% of the value of the car loans, with the balance of the borrowed money charged out to Turners at a rate of 4.5 - 5.5%. Contrast that to the securitized loans.

    Turners are only required to hold on the books 8% of the value of the securitized car loans (so they are more 'capital efficient'). Once a loan is securitized the BNZ (who does the securitization) gets direct access to the loan cashflows. As 'payment' for this privilege, the charge on securitized bank loan funding to Turners is reduced to 3.5 - 4.5%.
    Yet as we found out at the first Turners road show, the Turners banks require a 20% capital buffer on the car loans they support, which is vindication that my own 20% back up capital 'requirement' was spot on.

    This 'back up capital requirement' has been reduced to 8% when these same loans are securitized. I would suggest that the chance of a Turners Finance car loan 'going bad' does not change when that same loan is 'securitized' and bundled up with other similar loans to sell to the master financer - the BNZ bank. So the lesser capital requirement (down from 20% to 8%) is entirely due to the change in 'risk sharing' between 'Turners Automotive Group' and the BNZ who 'buy' the securitized loans. I put that word 'buy' in quotation marks. Yes the loans have been sold to the BNZ. But because Turners have retained a large proportion of the downside risk, they cannot be removed from the Turners balance sheet for accounting purposes. I imagine that Turners are fairly confident that their effective 'capital guarantee' will not be called upon. Otherwise the mere '1 percentage point saving in the interest bill points' to Turners would soon be swallowed up in capital losses.

    I can see a curious conundrum in the Turners loan book. There is little doubt that to loan money on a second hand car implies a much greater potential 'capital downside loss' than if that same money was lent against a house (like Heartland's reverse mortgages) or even a cow (loans to share milkers - at least the cow can be butchered for 'cash recovery' even if the milk price collapses). Yet there is a very high incentive to keep up your car payments ahead of even a conventional mortgage. As Percy keeps reminding us, no car means no way to get to work, which means no way to keep up with any of your payments. Some here get excited with Turner's 'net interest margin' (NIM). But the higher NIM is needed, because the asset quality (car) underneath the loan will depreciate rapidly and is expensive to fix and on sell again if servicing is neglected. Thus the conundrum is car loans are on low quality assets, which means the interest rates on such loans are high. But the incentive to keep up paying for these loans is also high. So car loans are in a 'sweet spot' of the loan spectrum. The 'high interest' that customers pay to cover the 'high capital downside risk' looks to provide a higher reward/risk ratio than all other classes of loans.

    SNOOPY
    Last edited by Snoopy; 26-07-2018 at 01:16 PM.
    Watch out for the most persistent and dangerous version of Covid-19: B.S.24/7

  10. #2570
    ShareTrader Legend Beagle's Avatar
    Join Date
    Jul 2010
    Location
    Auckland
    Posts
    21,362

    Default

    Well...yes, no,...maybe. Surveys overseas have started to indicate young people are more attached to their mobile phones than their cars and rightly or wrongly we're moving to a more urbanized living environment, (some of the big apartment blocks going up close to transport infrastructure are truly heinous) but they do give people the option to live without a car by using public transport most of the time and the likes of uber or some form of ride sharing at other times.

    My experience with Geneva finance tells me its the no deposit lending that you really need to worry about....where people haven't got a decent amount of their own skin in the transaction is where the real risk lies. What do you know about Turners loan approval processes ? Do they do much no deposit lending ?
    Ecclesiastes 11:2: “Divide your portion to seven, or even to eight, for you do not know what misfortune may occur on the earth.
    Ben Graham - In the short run the market is a voting machine but in the long run the market is a weighing machine

Tags for this Thread

Bookmarks

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •