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27-01-2022, 10:47 AM
#7181
Originally Posted by winner69
Things not going to plan at NZ Automotive -
New Zealand based integrated used automotive group NZ Automotive Investments Limited (NZAI / the Company) (NZX:NZA) advises of lower than expected revenue, as a result of lower car, finance and insurance product sales during the December and early January period.
Ha ha …. TURNERS BEATING THEM HANDS DOWN
The difference being that NZA stocked up with cars early December, but Turners early November. However Turners sold their stock by the end of December before the traditional glut of private vehicles came on the market, while NZA did not respond and actually had more stock in January than in December. Margins are tight, so small errors like that cost heaps.
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27-01-2022, 10:55 AM
#7182
Member
Originally Posted by Grimy
Paid tomorrow.
Dividend payable today (27th)
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27-01-2022, 11:12 AM
#7183
Originally Posted by SCOTTY
Dividend payable today (27th)
But grimy did post that yesterday.
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27-01-2022, 01:25 PM
#7184
Originally Posted by Jonette
The difference being that NZA stocked up with cars early December, but Turners early November. However Turners sold their stock by the end of December before the traditional glut of private vehicles came on the market, while NZA did not respond and actually had more stock in January than in December. Margins are tight, so small errors like that cost heaps.
NZA seem to be blaming everything in sight on BusinessDesk this morning: https://businessdesk.co.nz/article/l...ckfire-on-nzai
“Management is not seeing the expected bounce back in sales previously experienced following the first covid-19 lockdown,” it said.
This slowdown has been compounded by NZAI’s decision to stock up on low emissions vehicles that would qualify for the government’s clean car rebate.
The rebate was supposed to be implemented from the start of the year but has been pushed back to April, negatively impacting sales expectations of these car types.
“The business had expected to see a lift in demand of low emission cars in January, which it would benefit from,” NZAI said.
Realistically, they did not manage their stock to the market conditions, trying to jump the gun on imported EV and PHEV vehicles. Then they did not have Turners contactless purchasing (NZ Automotive Investment (NZAI) said having covid-19 in the Auckland region was reducing the number of sales rather than just delaying when they happen) Contactless purchasing seemed to ensure Turners stock continued to turnover during Auckland lockdown.
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28-01-2022, 03:39 PM
#7185
Member
Received my dividend, which I used to buy more Turners shares. It is, IMHO, the company which will go from strength to strength despite the economic challenges on our doorstep.
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28-01-2022, 04:09 PM
#7186
Originally Posted by Louloubell
Received my dividend, which I used to buy more Turners shares. It is, IMHO, the company which will go from strength to strength despite the economic challenges on our doorstep.
Bit like the US dollar so hope Turners have plenty of forward currency cover
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28-01-2022, 04:12 PM
#7187
Originally Posted by dreamcatcher
Bit like the US dollar so hope Turners have plenty of forward currency cover
As the majority of their stock is sourced in NZ, I doubt they will require a great deal of forward currency cover.
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28-01-2022, 04:24 PM
#7188
Originally Posted by Louloubell
Received my dividend, which I used to buy more Turners shares. It is, IMHO, the company which will go from strength to strength despite the economic challenges on our doorstep.
Well said, I agree 100%.
Ecclesiastes 11:2: “Divide your portion to seven, or even to eight, for you do not know what misfortune may occur on the earth.”
Ben Graham - In the short run the market is a voting machine but in the long run the market is a weighing machine
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31-01-2022, 12:52 PM
#7189
WTF --- did I see a 416 share price
Heck that's 12% off from it was early Jan
Even allowing for the 5 cent divie 460 seems a long way off now
“ At the top of every bubble, everyone is convinced it's not yet a bubble.”
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31-01-2022, 12:57 PM
#7190
Originally Posted by winner69
WTF --- did I see a 416 share price
Heck that's 12% off from it was early Jan
Even allowing for the 5 cent divie 460 seems a long way off now
Aye - nice short/medium term dividend yields off this price.
I might be wrong but I recall TRA saying they would revisit their medium term NBPT targets and update the market at some point (probably because they will have met them far earlier!). But as part of that it would be great to see some management discussion and analysis on the impact of rising second hand car prices, and what may happen to profitability once those elevated prices normalise at some point. They *will* go down, might not be this year, or even next year...but as a shareholder it is something in the back of my mind.
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