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

[LAC]

From my understanding (very young in TRA so might be missing some info) but their cash flow is good but not enough to support their growth. They need capital from somewhere which is what all the debate on here is about - how they get that capital being fair/unfair/other options etc etc. but they have still done the right thing by putting that capital to use straight away and very fast so that it will pay off long term (unless there are too maybe of their customers that cant pay off those loans for the cars). But next year they decide that the cash flow is good to get modest growth or the can do another capital raise or lower divie payouts so that they can achieve greater growth, I dont see the problem with that personally. Good use of capital is always a good thing. The EPS we are seeing may just not be great at the moment I agree, but assuming that loans for cars are on average 48/60 months...lets see EPS or the SP in 2022.
I am still liking TRA at the moment, I think they have a great plan, great product and they are in a growth sector "atm" that might change and I will change my view at that stage. Looks good to me for now.

[percy]

Thank you Turners my divie is in my bank already.

[Beagle]

At least you're getting something out of it. These were 28 cents several years ago (before the 10:1 share consolidation) and in that time the market has gone up HEAPS !
I think you should ring management Percy. The market is telling us there is some piece of the jigsaw puzzle you are missing...

[LAC]

Ahhh that slipped my mind, just checked and mine is in as well

[winner69]

At least you're getting something out of it. These were 28 cents several years ago (before the 10:1 share consolidation) and in that time the market has gone up HEAPS !
I think you should ring management Percy. The market is telling us there is some piece of the jigsaw puzzle you are missing...

Share price about the same as this time last year.....and down 22% in last six months

Was it really worth about 4 bucks plus .....and some were touting 5 bucks and salivating about the killing they were going to make on the bond conversion

We could say 40% down on expectations ......what went wrong

[blackcap]

At least you're getting something out of it. These were 28 cents several years ago (before the 10:1 share consolidation) and in that time the market has gone up HEAPS !
I think you should ring management Percy. The market is telling us there is some piece of the jigsaw puzzle you are missing...

They were also 8 cents a year before they were 28 cents, that was in 2012, so they have well out performed the market since then. The rise to 28 was on a lot of unsubstantiated hype. They actually went to 37 cents before falling back again.

[percy]

At least you're getting something out of it. These were 28 cents several years ago (before the 10:1 share consolidation) and in that time the market has gone up HEAPS !
I think you should ring management Percy. The market is telling us there is some piece of the jigsaw puzzle you are missing...

After following the company for some years, speaking with management/directors,and staff,understanding where they have come from, and where they are going, I know their business model is excellent,it is scalable,and is on track to deliver shareholders great rewards.Their acquisitions have been well thought out, adding to the core strength of the group.The balance sheet is strong.The brand is well known and Turners reputation is excellent.
On a personnel level a daughter brought a car from them a few years ago,and the experience was effortless.A first class customer focussed business.
As you know I trust my own research,as it has a proven profitable record.

PS.Anyone who does not understand that appointing the right people and giving them the tools to the job,will not led to a better business, would be well advised to read Ian Fallon's book "Billionaire,The Life and Times of Sir James Goldsmith".
Or The Mainfreight story.

[Beagle]

Share price about the same as this time last year.....and down 22% in last six months

Was it really worth about 4 bucks plus .....and some were touting 5 bucks and salivating about the killing they were going to make on the bond conversion

We could say 40% down on expectations ......what went wrong

Well some people were talking 25% earnings growth and the real EPS growth of 8-9% forecast was never mentioned until very recently. Big disappointment no question. Chances of the shares being more than $3.95 in September 2018 at conversion time are basically NIL and we now know a 5% discount to VWAP is insufficient to guarantee a premium on conversion as those that took at 10% discount with the recent capital raise are barely in the money. SUM companies are disappointing me and this is one of them. Disc: I have been selling the bonds.

[Snoopy]

Share price about the same as this time last year.....and down 22% in last six months

Was it really worth about 4 bucks plus .....and some were touting 5 bucks and salivating about the killing they were going to make on the bond conversion

We could say 40% down on expectations ......what went wrong

... the expectations ...?

I am happy with my own investment in TRA. IIRC I paid an average of about $2.80 for my shares and have a hedge of a few TNRHA bonds to go with them. The secret, as with any share that has a business behind them that actually earn money, is to not pay too much for them.

SNOOPY

[JeremyALD]

Sub $3 on the cards?