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

[winner69]

Comes down to the fact that margins in the used car trade have shrunk so much that many dealers are out of business?

Declining demand and shrinking margins not good ....for a business model that has too many ticket clippers

[Balance]

Declining demand and shrinking margins not good ....for a business model that has too many ticket clippers

There will be an industry consolidation but entries to barriers are so low that consolidations in the past have not delivered gains.

Any ex-used car salesman can more or less set up as a business - import 25 cars at say, $10k = $250,000, rent a yard and a new player emerges.

[BlackPeter]

There will be an industry consolidation but entries to barriers are so low that consolidations in the past have not delivered gains.

Any ex-used car salesman can more or less set up as a business - import 25 cars at say, $10k = $250,000, rent a yard and a new player emerges.

Sure, but with all the doom around on this thread we should not forget that while selling cars generates most of TRA's revenue - the margins (and with that the earnings) do come from insurance and finance (generating together two thirds of TRA's earnings). The hurdles to get into these two areas are much higher.

But yes, I don't like the current trend either and decided to watch the spectacle from the side lines ;

[Beagle]

Plenty of work for the SP to do yet to establish any credentials from a TA point of view that the downward trend has finished. See 6 month chart attached showing red 30 day MA line and black 100 day MA line chartturners.jpg

[percy]

The new Whangarei site [ex Placemakers] is a superior site than their old site.It is better located and holds 25% more vehicles.
It has been developed by Turners to meet their needs.It is owned by Turners,therefore Turners will be able to book the development margin.
They offcourse can either hold onto it, or sell and lease it back.

[winner69]

Plenty of work for the SP to do yet to establish any credentials from a TA point of view that the downward trend has finished. See 6 month chart attached showing red 30 day MA line and black 100 day MA line chartturners.jpg

You’ll be saying something much different by the end of the month when share price $2.50

[couta1]

The days of $2.14 are gone and the days of $2 will never happen and the days of Beagle gnashing his teeth have begun.

[BlackPeter]

You’ll be saying something much different by the end of the month when share price $2.50

The days of $2.14 are gone and the days of $2 will never happen and the days of Beagle gnashing his teeth have begun.

Interesting. Just had another look at the Milford announcement:

http://nzx-prod-s7fsd7f98s.s3-websit...509/294850.pdf

Over the last 12 months they first bought 831k shares at an average SP of $2.86; Obviousy - they bought into a downtrend, maybe no KW fans ;

And after that they sold 1588k shares for an average price of $2.40;

I guess this means sometimes over the last 12 months they changed their view on TRA (might have been related to their potential for a profit downgrade, who knows?).

Question is - if you two assume the SP will go stellar from here - what reason do you see for Milford to have changed their view - again? I guess why would they sell anyway at an average of $2.40, if they think the share is fairly priced at that level?

On the other hand, if they still think the share is overvalued - why do you think Milford would not continue to sell into any strength? And yes, just looking into their announcement - they still have more than 6m shares to offload.

Might keep the SP for a while below the MA 100 - which happens to be around $2.50.

I guess if we see at some stage some strength on the way up (which we don't yet), than we will soon know (they would need to issue another SSH if they keep selling) - one way or another.

[winner69]

Interesting. Just had another look at the Milford announcement:

http://nzx-prod-s7fsd7f98s.s3-websit...509/294850.pdf

Over the last 12 months they first bought 831k shares at an average SP of $2.86; Obviousy - they bought into a downtrend, maybe no KW fans ;

And after that they sold 1588k shares for an average price of $2.40;

I guess this means sometimes over the last 12 months they changed their view on TRA (might have been related to their potential for a profit downgrade, who knows?).

Question is - if you two assume the SP will go stellar from here - what reason do you see for Milford to have changed their view - again? I guess why would they sell anyway at an average of $2.40, if they think the share is fairly priced at that level?

On the other hand, if they still think the share is overvalued - why do you think Milford would not continue to sell into any strength? And yes, just looking into their announcement - they still have more than 6m shares to offload.

Might keep the SP for a while below the MA 100 - which happens to be around $2.50.

I guess if we see at some stage some strength on the way up (which we don't yet), than we will soon know (they would need to issue another SSH if they keep selling) - one way or another.

Gaynor says Milford success is due to the relentless curiosity of its people.......maybe their curiosity over Turners has turned (for the better)

[dreamcatcher]

News like this don't help SP or convince investors to buy.....

https://www.abc.net.au/news/2019-03-...wdown/10875580