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

[winner69]

Don't think they published yet their full HY report, but if you look at the balance sheet in the HY presentation:

total Assets $658 m (admittedly including $171 m "intangibles" which no question do have value, but its hard to say how much)

total Liabilities $441 m

That's a "safety buffer" of at best $217 m (33%) or at worst (intangibles worthless - unlikely) $46 m (7%).

OK - worst case admittedly does not look that flash (though much better than with many other companies I can think of), but honestly - I don't think that Turners intangibles are that excessively overvalued ...

OK but that sum is different from what you said prior (the bit in red in that post)

No doubt we’ll agree to disagree. You and others think debt levels are OK and bull and me think they are a bit high relative to actual performance.

Whatever I doubt Turners earnings cover their total cost of capital .....and that is one reason why the market is valuing the company at its book value. Even at this level that implies they need Improve financial performance

[minimoke]

Just as well TRA are cancelling the shares and not holding them as treasury stock. Last buy back was at $2.44. Down from the start of the process at $2.548.

[BlackPeter]

OK but that sum is different from what you said prior (the bit in red in that post)

Sure - I thought we better look at the full picture instead of a selected few asset classes to avoid somebody coming up with "but what about ...". What is wrong with that?

But if you insist lets look at the smaller picture:

Borrowings: $330m

financial receivables: $290m
+ Inventory: $43m
+ Property: $35m
Total assets which happened to be mentioned in above post: $368m

Leaves still a margin of $38 m;

Add to that more than $80m cash and financial assets .. plus the "other assets" minus tax and whatever - and you end up with the bigger picture (as in my previous post).

[winner69]

Sure - I thought we better look at the full picture instead of a selected few asset classes to avoid somebody coming up with "but what about ...". What is wrong with that?

But if you insist lets look at the smaller picture:

Borrowings: $330m

financial receivables: $290m
+ Inventory: $43m
+ Property: $35m
Total assets which happened to be mentioned in above post: $368m

Leaves still a margin of $38 m;

Add to that more than $80m cash and financial assets .. plus the "other assets" minus tax and whatever - and you end up with the bigger picture (as in my previous post).

That Life Insurance Contract Liabilities of $50m is (relatively) high

We can cut and dice it all we want but again we just have different views. You and others think debt levels are Ok and me and others think they are a little high relative to equity (and current financial performance). Probably there’s no ‘right’ answer anyway

One thing you have shown is that they are solvent ...that’s good

And by the way I did not ‘insist’

[couta1]

I'm kinda thinking this share buy back is actually dragging the SP down slowly.Lol

[percy]

I'm kinda thinking this share buy back is actually dragging the SP down slowly.Lol

Working well,only 115,302 shares brought back so far in four days.
Less than you would buy in half an hour....lol.

[couta1]

Working well,only 115,302 shares brought back so far in four days.
Less than you would buy in half an hour....lol.

Yes well crafted, a bit of short term pain for a long term gain.

[McGinty]

I'm kinda thinking this share buy back is actually dragging the SP down slowly.Lol

The cause is due to lack of investor confidence of this company. Many sellers most likely from the last 2 convertible bonds conversions and the Placement/SPP last year, who are finally cutting their losses.

The buy side is thin and outside TRA's buyback and Directors purchases, there's most likely only a handful of current investors averaging down.

New potential investors will be waiting this one out until the story improves.

[BlackPeter]

I'm kinda thinking this share buy back is actually dragging the SP down slowly.Lol

Isn't this just watching Turners to make money out of thin air? They recently created (sold) plenty of new shares (in the bond conversion) for $2.85 a piece (don't remember the exact number), and now they are buying the same shares back for $2.44 ...

Just another nice little earner ...

[Beagle]

http://www.ahgir.com.au/download/201...esentation.pdf
Interesting to read AHG's recent annual meeting presentation and see how Australasia's largest listed automotive group is going. In brief, (because I know the vast majority of you good folks are too busy to read this link in full) their profit for the first four months of FY19, (annualised) is tracking at slightly less than half last year and this includes two of the busiest months of the year in spring when sales are normally robust. N.Z. new vehicle sales by comparison with Australian sales are very robust by comparison, go figure ? (especially given business and consumer confidence here is anything but positive).

I think some of the factors mentioned in their report help put Turners (maybe and modest) profit downgrade into its proper perspective.