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

[Snoopy]

Yes, I sure wish I'd had the intelligence and foresight to take bonds instead of shares for my TUA shares. Oh well, too late now.

Despite the sarcasm from our banned friend, it does now look as though taking the bonds was the shrewd move. The share price has retreated down to 27c, which implies a conversion price of just 25.5c. 25.5c is only 0.5c above what those who elected to take shares from the offer got. In the meantime bondholders are enjoying a much better income on their capital than shareholders, and still have the option of 'pulling out' at face value if everything turns to custard for TNR over the next year.

Then in another amazing about face by TNR management, the bonds are now listed (ticker TNRHA)! Buyers in there at $1.04,with sellers sitting there at $1.07. That is about a 5% premium to face value should any bond holder want out.

SNOOPY

discl: happy TNRHR 9% bondholder

[black knat]

Despite the sarcasm from our banned friend, it does now look as though taking the bonds was the shrewd move. The share price has retreated down to 27c, which implies a conversion price of just 25.5c. 25.5c is only 0.5c above what those who elected to take shares from the offer got. In the meantime bondholders are enjoying a much better income on their capital than shareholders, and still have the option of 'pulling out' at face value if everything turns to custard for TNR over the next year.

Then in another amazing about face by TNR management, the bonds are now listed (ticker TNRHA)! Buyers in there at $1.04,with sellers sitting there at $1.07. That is about a 5% premium to face value should any bond holder want out.

SNOOPY

discl: happy TNRHR 9% bondholder

Look snoop... it is all very well to claim the prize for decision making at this early juncture. TNR is a very illiquid share. Some share holders would have sold out at .35 or better with the opportunity to re-enter at a cheaper price - they would be quite happy with how things are developing . Others might be quite happy just to hold and to see how things pan out. A very well managed company. No significant shareholders have reduced their stake.

[Snoopy]

Look snoop... it is all very well to claim the prize for decision making at this early juncture. TNR is a very illiquid share. Some share holders would have sold out at .35 or better with the opportunity to re-enter at a cheaper price - they would be quite happy with how things are developing . Others might be quite happy just to hold and to see how things pan out. A very well managed company. No significant shareholders have reduced their stake.

Not claiming any prize Black Knat. However, I don't find it easy to reconcile your comment that some shareholders sold out waiting for a re-entry with the admission that the share is illiquid. The illiquidity itself surely casts doubt on the certain execution of such a strategy!

Returning to the investment case for the shares. I think we can both agree that if TNR does really well going forwards, then investing in the head shares at 25c at TUA takeover time was the best option.

OTOH, The case for investing in an option (what the bonds are) is never about performance alone. It is about choice. In a years time, if the share price remains at 27c or more you will claim that the downside risk protection of the bonds has no value. Technically you will be correct, from a hindsight perspective. But the investment case for an option does have value while the options are still in play, which is right now.

The problem with measuring performance 'at the end' is that once the excise/redemption date of the options passes, the investment trajectory becomes an historical series of event with no alternative paths. But such a viewpoint is missing the point. No-one knows for sure what will happen to TNR over the next year. So investing in a option today can still be the rational choice , even if it does ultimately lead to a lower return.

SNOOPY

[bull....]

great effort all looks good - nice rounded bottom at 26c was a good entry

[biker]

great effort all looks good - nice rounded bottom at 26c was a good entry

Yes Bull, all going well. Good management consistently achieving what they say they will. Great buying at 26c but still great buying around 30c IMO with great medium term upside potential. A Company that operates without lots of hubris, quietly building a solid base to launch from into bigger and better things.

[golden city]

i like tge management..got in again today

[percy]

A very good result.
It appears to me Turners are gaining market share in used vehicle sales.
Bit sorry now I sold out.!!! lol.

[RTM]

Pleased I kept mine as I did waiver for while. I would call it indecision....not conviction tho. Will be interesting to see how the duel with Heartland with respect to MTF works out. Maybe a nice gain for TRN there as well.

[percy]

Pleased I kept mine as I did waiver for while. I would call it indecision....not conviction tho. Will be interesting to see how the duel with Heartland with respect to MTF works out. Maybe a nice gain for TRN there as well.

At this stage TNR are in "the box seat"with MTF.
ps.I did put the TNR funds to good use.!! lol.

[Snoopy]

Pleased I kept mine as I did waiver for while. I would call it indecision....not conviction tho. Will be interesting to see how the duel with Heartland with respect to MTF works out. Maybe a nice gain for TNR there as well.

RTM (and others). TNR have never said they want to gain control of MTF. TNR want to raise their shareholding in MTF to match the level of business they have with MTF, right now. This equates to 10-15% of the shares in MTF IIRC. You Heartland enthusiasts had better hope that Heartland does not bid for MTF. Because if they are successful then TNR could pull all of their business from MTF, as TNR have their own 100% owned finance companies that could do the job for them.

Heartland 'win' the bid for MTF, then 15% of the business disappears overnight? It won't be good for Heartland shareholders.

SNOOPY