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

[Bling_Bling]

One would also assume that a few of the weak finance firms dropping out is good for the industry as a whole in the long term. Consolidation in the industry will benefit the few dominant players. Interesting comments from posters, thank you.

[dsurf]

At an industry level - rising interest rates and liquidity crunch does not keep the cashflow coming in - hence 4 finace firms fall -over

At a company level - Inexperienced management with no track record and not meeting targets (including the reverse mortage debacle)
- Fractious boardroom
- Split opposing dominant shareholders, reducing any T/O opportunity

I will buy this at a $1.00 in the next 2 years.

[Bling_Bling]

quote:Originally posted by dsurf

I will buy this at a $1.00 in the next 2 years.

At $1 ST L grp will probably T/O the company lol

[Hoop]

Hairdresser you will probably know the answer now to your own question by now... Do DPC have any loans to Bridgecorp or related parties on its books? If they do it would explain the share price drop off.

Answer: No http://www.directbroking.co.nz/direc...spx?id=1642653

Interesting point about people waiting for DPC to go to $1.

Phaedrus is smiling as it reinforces that his TA disciplines work a treat here as opposed to FA to which I still use as one of my tools.
TA & FA conflict extremely here.

Finance companies run with very little Nett Asset backing per share.E.g:

AMP share price(SP)$11.15 NTA/Share $0.94
Dominion (DFH) SP $ 2.05 NTA/S $0.26
Tower (TWR) SP $ 2.33 NTA/S $1.10

[u]Banks are the same</u>

ANZ (ANZ) SP $31.50 NTA/S $10.38
Westpac (WBC) SP $28.30 NTA/S $9.94

The bigger the gap between SP and NTA reflects on how well management perform in making profit from borrowed money and yet still remain at a low level of perceived risk to its investors.

AS one can see from these quick examples the Banks are not much different and yet the NZ public's perception of a Bank is far superior to that of a Finance Company.


[u]Now the interesting thing with DPC is SP $1.61 NTA/S $1.92</u> !!!!!
In theory this says that if the Banking /Finance market had a major collapse tommorrow DPC would be the only surviver.

This anomally has been around for years with this share. DPC has been ripe for the picking for many years and probaly was the reason that Hugh Green jumped in many years ago.
He too is still waiting...He is probably wishing now that he had a time machine.

[Phaedrus]

quote:TA & FA conflict extremely here.

FA says "Buy".
TA says "Not yet".
I don't see any conflict!

[hairdresser]

I don't understand the share price action at all with DPC.

Looks like a buy but looked like a buy a few months ago as well but the SP keeps dropping.

Its so thinly traded its hard to get a read on whats happening.

All the decent volume moves have been down which sort of indicates that there are no buyers out there [excepting DPC itself].

Higher interest rates do hurt lenders though as they usually borrow short and lend long so their average COF will be rising faster than their average lending rate so their lending margin will be dropping, but with the sort of fees and rates that second tier guys charge this shouldn't be too much of an issue.

[hairdresser]

PS That DPC are buying back sort of indicates

1. That they don't have any cash flow problems and
2. That they think they can get a beter return on their own shares than from lending their cash out.

[Bling_Bling]

quote:Originally posted by Hoop

.


[u]Now the interesting thing with DPC is SP $1.61 NTA/S $1.92</u> !!!!!
In theory this says that if the Banking /Finance market had a major collapse tommorrow DPC would be the only surviver.

Why did Bridecorp pay over $3 for DPC shares?

[Hoop]

Why did Bridecorp pay over $3 for DPC shares?

Because they bought them cheaper than at their first attempt They must have thought it was real bargain back then

A bit of investment humour from the past [}]

[u]Announcement 31-08-2004</u>
...After these transactions Bridgecorp held 19.99% of the voting rights in Dorchester, mostly acquired from King and entities under his control at $4.04 per share......

This deal never went ahead (Market shareprice at the time $2.75)

Bridgecorp entered in 2004 and accumulated in the last half of 2005 gaining about a 9% stake at about $2.50 a share up to 19.9% stake.
Hugh Green Inv also accumulated at the end of 2004, to control the Bridgecorp intended T/O.

Isn't hindsight amazing [8D]

[Bling_Bling]

All these jokers.. Green, King, Bridge and St L Grp all paid a premium to the current share price, so there must be value in this pup.