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

[percy]

Your client would be a lot more profitable if he also clipped the ticket with finance and insurance,which are ongoing profit drivers.
TRA recent capital raise has not been sitting idle in a Kiwi Bank cheque account.
New car/equipment dealers sites being developed,core finance and insurance bulked up.
All the time the added bolt ons has strengthened the very strong business model,which has been made easier by Turners' great brand. .
These core improvements will lead to eps growth,which will be returned to shareholders with increasing fully imputed dividends.Making an investment decision on one year's eps,without looking fully at the business's core improvements, is a very poor short term mistake.A bit like saying SUM or RYM did not build as many units in one year as you expected,so therefore you sell out.The same sort of mistake was made by a number of people who thought HBL brought a dead duck when they brought Senior's REL.
Be prepared to be surprised,as TRA directors/management have laid the solid foundations for a really great company,by making the right decisions on where to allocate capital..

[LAC]

I think this fin year will be a good result overall but next year will be the one to watch. The timing of the last capital raise wasnt the best timing as now on paper it will show a chunk of new shares issues but not all of that capital used. Very new to this stock, but after reading their business model and the "clipping the ticket" makes it a good investment for me. Trying to move away from stocks that I need to check on very often, this one show value in the years to come hence I will accumulate at the lows.

[Marilyn Munroe]

Your client would be a lot more profitable if he also clipped the ticket with finance and insurance,which are ongoing profit drivers.

Selling commercial vehicles is different. You will most likely be selling to a business which has an existing relationship with a financier or insurer, up-selling these extras is less likely. Plus they probably have taken advice from their accountant on how much to spend before they even walk on to the yard.

Boop boop de do
Marilyn

[percy]

Selling commercial vehicles is different. You will most likely be selling to a business which has an existing relationship with a financier or insurer, up-selling these extras is less likely. Plus they probably have taken advice from their accountant on how much to spend before they even walk on to the yard.

Boop boop de do
Marilyn

And they too will be surprised that TRA will usually offer them a better deal.

[Beagle]

And they too will be surprised that TRA will usually offer them a better deal.

You're incorrigible Percy..just like I was when I was long AIR

[percy]

Especially for you.
"You're neither right nor wrong because other people agree with you.You're right because your facts are right,and your reasoning is right."
Benjamin Graham.

[Beagle]

LOL you know I like him, a real legend. On his model the PE should be 8.5 for a no growth company + 2g and EPS growth seems to be going to be 4% so if as you suggest TNR is building long term growth into its business model then the PE should be 16.5 and they're presently fundamentally mispriced on a trailing PE of about 13. The only problem with his model is when you start applying it to SUM other companies you get some really outrageous valuations which suggests either his model doesn't apply today or there's better value in SUM other places.

[LAC]

http://www.nzherald.co.nz/business/n...ectid=11973882

Record used cars sales in NZ

[percy]

http://www.nzherald.co.nz/business/n...ectid=11973882

Record used cars sales in NZ

Thank you for the link LAC.
"Turners,the nation's biggest used car dealership,says there are no signs the used car market slowing down in coming years."
No surprises there.!

[Beagle]

http://www.nzherald.co.nz/business/n...ectid=11973882

Record used cars sales in NZ

Needs to be considered in the context of an extra 70,000 people who migrated here last year, i.e. a similar increase in the population base. While the article is technically correct I don't believe it foreshadows any change in the real level of turnover on a population adjusted basis or a trend toward second hand over new as new vehicle sales have been growing at a much higher rate, (new might go flat in 2018 with business confidence ebbing quite a bit).
What is good is that Turners seem to be keeping their market share as their sales are up by a similar percentage.