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

[kiwico]

Speaking of no customers, or only a few, I literally stumbled across Turners yard in Porirua today. Man that's tucked away in the boondocks behind (and hidden from) Bunnings and just before Placemakers (which is dead in the weekend, being tradies focused). The 5 or so cars outside and the 10 or so people wandering around at 2pm seemed pitiful compared with Turners in Seaview which just rocks on any given Sunday.

I know what you mean, I did exactly the same last week when heading to Placements for something I couldn't find at Bunnings or Mitre 10. I commented about having just discovered the Turners site to the people behind the counter at Placemakers who replied it was quite a common thing - i.e. no one seems to know the Turners Porirua site exists unless they visit Placemakers or the Harvey Norman offsite storage site.

[percy]

I know what you mean, I did exactly the same last week when heading to Placements for something I couldn't find at Bunnings or Mitre 10. I commented about having just discovered the Turners site to the people behind the counter at Placemakers who replied it was quite a common thing - i.e. no one seems to know the Turners Porirua site exists unless they visit Placemakers or the Harvey Norman offsite storage site.

I think we are seeing Turners relocating to better "retail" sites.Has been very successful at Whangarei.
Poorly located sites were OK for "trade" business, when most of their customers were other dealers,and auctions.
Turners are in a good position, as they can develop sites that suit them.Profitable for shareholders too, as they book the development margin.
I think their present ChCh site is poorly located.I know they want to move.

[Snoopy]

Good to see them getting out and promoting themselves to prospective investors

Need all the help we can get in these dire times

Hopefully enough enthusiasm shown to get punters to buy big ...should be in everybody’s portfolio ,,,$2,50 next week

http://nzx-prod-s7fsd7f98s.s3-websit...936/296734.pdf

Before this roadshow gets totally lost in the mists of time, a few musings:

1/ I see Turners are importing 6,000 cars from Japan each year (p3). Total used imports over a year are 164,000 (p6). So Turners imports make up 3.7% of the total import market.

2/ Total change of ownerships registered over the year were 1,130,000 (p7). No doubt this figure includes private sales and transfers. But 5% of this market represents 56,500 sales

3/ Average days of age of days in Inventory for Buy Right Cars down to 152. Yet target is much lower, 60-90days (from 2018 roadshow).

SNOOPY

[Ggcc]

I don't quite know when I have ever seen these sales guys quiet. When I went to purchase a vehicle at Turners, they had about four people waiting on the one sales rep every time. Sure though it was the weekend, but the rep was awesome to deal with and did not show signs of being too big for his own boots.

[Brain]

Before this roadshow gets totally lost in the mists of time, a few musings

2/ Total change of ownerships registered over the year were 1,130,000 (p7). No doubt this figure includes private sales and transfers. But 5% of this market represents 56,500 sales



SNOOPY

Thanks for that Snoopy. It certainly puts the scale of Turners into perspective. I am chap that hangs on to cars for a very long time.My current car I bought new in 2004 and still have no intention of selling it so I had absolutely no Idea of the turnover of the used car market.

[BlackPeter]

Hopefully they will do their own research.
Funny enough, the more research I do the better the results I get.
It really works.

You are not talking about your TRA shares - are you ?

[Beagle]

You are not talking about your TRA shares - are you ?

Its coming right though, its going to be well north of $4 in next to no time....cough cough...5-10 years.

[percy]

You are not talking about your TRA shares - are you ?

All of my portfolio is made up of shares I have fully researched, including my substantial Turners holding,which is my third largest holding.

[percy]

Its coming right though, its going to be well north of $4 in next to no time....cough cough...5-10 years.

Time is the friend of a great share.
I remain well positioned,receiving substantial dividends.
Another biggie in the bank tomorrow.Love them.

[BlackPeter]

All of my portfolio is made up of shares I have fully researched, including my substantial Turners holding,which is my third largest holding.

Percy, I was referring to the "it really works". I think for TRA the jury is still out (to express it nicely) whether it worked.

You've been pretty convincing promoting this share during an unrelenting downtrend from (I think) $3.20 or so ...

Happens to all of us from time to time ... (and yes, I was guilty as well to find reasons to buy TRA (in a downtrend), MPG (in a temporary uptrend) and don't mention CBL (which didn't really trend at all) ), but experiences like that could be as well a good opportunity to review what went wrong.

I think we all see the fundamental opportunities in TRA: great idea to roll up the NZ used car market and offer a one stop shop for used car buyers.

I hope we all see the risks: It is still to a significant part a finance company with a somewhat patchy track record, it is even (shock horror) an insurance company - and yes the second hand car market seems to be cyclical as well (and currently on the way down).

I believe that TRA has a good management team. I do have some experience in assessing the quality of top managers, but I am not infallible. So yes, DYOR.

I ignored in the beginning (of holding this stock myself) the previous track records of some of the board members - at my peril. I guess both Bakers as well as Byrnes did have clearly some achievements in the past, but both had as well their failures ... and I think that neither MOA nor DPC are examples for happy shareholder outcomes (though, yes, it always could have been worse).

If anything than both our entries into TRA have been terribly timed. Maybe something we can work on? It does not "just really work", well - yet.