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

[sb9]

More encouraging news on Used Car Pricing from Aust. Looking Good for 25th Nov...

Consumer splurge on used cars gives Carsales a COVID boost

https://www.smh.com.au/business/comp...22-p56gt2.html

Should be a good one for TRA as well, finally they may break the $3 mark with good commentary and outlook. Bid side stacking up nicely in anticipation and another juicy quarterly dividend to come our way in new year

[Beau]

Should be a good one for TRA as well, finally they may break the $3 mark with good commentary and outlook. Bid side stacking up nicely in anticipation and another juicy quarterly dividend to come our way in new year

Yes Turners positioning nicely for Wednesday

[LaserEyeKiwi]

Any reason for the bump in share price today? Just people getting in before earnings on Wednesday?

[LaserEyeKiwi]

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Hi Beagle, thanks for the kudos...I appreciate that. I hope the comments I make from time to time are helpful and provide insight. Well done on your share purchase too. Answers to your questions below...

1. Short answer is yes...we didn't stockpile non ESC cars, but vehicle prices have definitely gone up. There have been two large impacts on supply this year....

a) the ESC change which has reduced the pool of available cars that could be imported into NZ.
b) Covid and the impact on new car supply chain which had an impact not just locally but also in Japan and the number of cars available in the auctions over there.

2. Prices for used cars have risen steadily from late May. At this stage, the effect of supply disruption i.e. the new car supply chain interruptions + ESC change mentioned above are more material effects than any shift in demand caused by substitution of public transport with private vehicles.

3. Yes I do. I think this business always goes slightly better in a centre-left government due to the level of support/stimulus that comes with Labour. Beneficiaries are not really our target market but middle NZ families do benefit as well. Most of our customers who have mortgages will have or about to get substantial decreases in their mortgage payments, no overseas travel etc, and the unemployment rate has not peaked like the economists thought it would. We feel confident we will continue to prosper. In regard to the minimum wage it will be an immaterial impact as we have a small number of people on the team at this sort of level.

Thanks
Todd

Thanks for adding that colour about the business Todd - very helpful.

[Beagle]

Any reason for the bump in share price today? Just people getting in before earnings on Wednesday?

Retail sales data for the Sept quarter out yesterday was stunning. From memory, spending in the motor vehicle sector was up 47% in line with vehicle registrations up 50%...or were those two figures the other way around, I forget and it doesn't really matter. Bottom line, this sector is booming.

[LaserEyeKiwi]

Retail sales data for the Sept quarter out yesterday was stunning. From memory, spending in the motor vehicle sector was up 47% in line with vehicle registrations up 50%...or were those two figures the other way around, I forget and it doesn't really matter. Bottom line, this sector is booming.

Thanks for that.

Some nice movement today - It's already breached 2.80 briefly on a couple of trades.

[sb9]

Thanks for that.

Some nice movement today - It's already breached 2.80 briefly on a couple of trades.

Looks like it going settle around 2.80 for now until what gets unveiled tomorrow which will determine further course of sp direction. Well at least as at today's price I've made good losses from my previous lot into this one and handsome more on current lot. Overall pretty stoked!!!

[tommy_d]

Looks like it going settle around 2.80 for now until what gets unveiled tomorrow which will determine further course of sp direction.

looking like being both value and dividend demand for this.
Feel overweight in it already (20% of portfolio, average price $1.63), otherwise i'd be buying more. I can't see anything other than a brief surge post announcement tomorrow.

[sb9]

looking like being both value and dividend demand for this.
Feel overweight in it already (20% of portfolio, average price $1.63), otherwise i'd be buying more. I can't see anything other than a brief surge post announcement tomorrow.

Couldn't agree more, if the outlook commentary is positive it wouldn't be too hard to see it push past $3 mark in short term

[RTM]

looking like being both value and dividend demand for this.
Feel overweight in it already (20% of portfolio, average price $1.63), otherwise i'd be buying more. I can't see anything other than a brief surge post announcement tomorrow.

I thought they said before 9:00...cutting it pretty fine.