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

[blackcap]

Wow have not had a look at the TRA price for a while. Some serious buyer (price wise) activity showing up. Above $2.50. Nice one.

[SilverBack]

Wow have not had a look at the TRA price for a while. Some serious buyer (price wise) activity showing up. Above $2.50. Nice one.

No doubt a response to the drop in the OCR by the RBNZ.
Cheaper base rate means lower finance rates means more vehicle sales. Plus company share prices with good yields are being adjusted to reflect the lower interest rate environment.

[blackcap]

No doubt a response to the drop in the OCR by the RBNZ.
Cheaper base rate means lower finance rates means more vehicle sales. Plus company share prices with good yields are being adjusted to reflect the lower interest rate environment.

That is true, however as a caveat, the finance side of the business thrives in high interest rate environments and not low ones so there might be a bit of damage there. Again time will tell.
I also think we as investors place too much emphasis on "yield paying companies" when saying they will benefit in low interest rate environments because every company irrespective of whether they pay a dividend or not is a yield paying company. Some companies pay this yield in capital gains others in dividends, others in yet a mixture thereof. But every company has an implicit yield.

[couta1]

That is true, however as a caveat, the finance side of the business thrives in high interest rate environments and not low ones so there might be a bit of damage there. Again time will tell.
I also think we as investors place too much emphasis on "yield paying companies" when saying they will benefit in low interest rate environments because every company irrespective of whether they pay a dividend or not is a yield paying company. Some companies pay this yield in capital gains others in dividends, others in yet a mixture thereof. But every company has an implicit yield.

Well said blackcap,as an example take ATM, no divvy paying company on the NZX could start to compete with the yield that stock has produced over the last few years.

[BlackPeter]

No doubt a response to the drop in the OCR by the RBNZ.
Cheaper base rate means lower finance rates means more vehicle sales. Plus company share prices with good yields are being adjusted to reflect the lower interest rate environment.

Mmh - not sure whether the drop in the base rate is good for TRA.

For starters - it does bring the currency down, which makes imports more expensive.

TRA is importing lots of used cars and pays in foreign currency for them.

Cost of driving in general will go up. Oil is paid for in US dollars and will go up. So will the prices for any spare parts vehicles need. Anotehr reason not to buy a car.

For the finance side the rate move it should be pretty rate agnostic (but not advantageous) - if the rate drops, their finance becomes cheaper, but their customers expect probably cheaper rates as well.

Insurance - obviously cost of claims will go up (dearer spare parts) - and they will either need to increase their premiums or drop their margins.

And sure - this was only a small move, i.e. the sky won't fall in, but the direction is in my view not good for TRA.

[percy]

Mmh - not sure whether the drop in the base rate is good for TRA.

For starters - it does bring the currency down, which makes imports more expensive.

TRA is importing lots of used cars and pays in foreign currency for them.

Cost of driving in general will go up. Oil is paid for in US dollars and will go up. So will the prices for any spare parts vehicles need. Anotehr reason not to buy a car.

For the finance side the rate move it should be pretty rate agnostic (but not advantageous) - if the rate drops, their finance becomes cheaper, but their customers expect probably cheaper rates as well.

Insurance - obviously cost of claims will go up (dearer spare parts) - and they will either need to increase their premiums or drop their margins.

And sure - this was only a small move, i.e. the sky won't fall in, but the direction is in my view not good for TRA.

I take it you have still not yet brought back the TRA shares you sold.?....................lol.

[BlackPeter]

I take it you have still not yet brought back the TRA shares you sold.?....................lol.

Nothing changed for this business, but a so far weak SP uptrend ... and (just btw) they are still below the MA200.

There used to be times when a poster called percy did warn to buy into downtrends. TRA is in a downtrend. Just following his great advise ;

Wishing holders all the best, but even if it looks like at the moment somebody wants in ... I don't see at this stage the potential benefits exceeding the risks.

[JohnnyTheHorse]

Grant must be happy as, he's now in the green on his last purchase.

Some interesting price action on the buy side with the bot running.

[minimoke]

Put it in your diaries 10.30 29 May for the Annual results presentation (

The results presentation will be released to the NZX and can also be streamed

live during the call by following this link:

https://slideassist.webcasts.com/starthere.jsp?ei=1243855. ) 10/10 for providing a streaming link! Seems like only Todd Hunter is going to be there - along with the CFO.

[winner69]

Todd Turner must be chafing at the bit wanting to announce the $32.5m NPBT for F19 and rave that’s a solid 5% increase over the prior year in spite of challenging market conditions. He’ll probably tell us that earnings growth has come about from all parts of the business performing well.

What’s important though is the outlook. I reckon they’ll hint and tease us about double digit growth for F20 as their strategic initiatives unfold.

That’ll condemn the broker analysts forecasts to the dump bin (were stupidly low anyway) and they’ll need to Have another guess,

I thought the TRA share price would go to $3,23 after the half year announcement but I didn’t foresee them in telling tales of gloom and despair to get the share price down so they could buy back more shares (sneaky stuff eh). But never mind I’m pretty confident of the $3.23 in the next month or so after the full year ...only 6 months or so late.