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

[Snoopy]

Great that kind of news. Should see the $3 mark busted today and on wards from there...

As a very small shareholder, but potentially a much larger shareholder if I convert my bonds, I am cautious. There is a big incentive here for management to massage the results to induce bondholders to convert. Not saying TNR has done this. Just saying that you should drill down ionto those results, looking at the provisioning, rather than take this announcement at face value before committing.

SNOOPY

[Jinx]

As a very small shareholder, but potentially a much larger shareholder if I convert my bonds, I am cautious. There is a big incentive here for management to massage the results to induce bondholders to convert. Not saying TNR has done this. Just saying that you should drill down ionto those results, looking at the provisioning, rather than take this announcement at face value before committing.

SNOOPY

Compared to this time last year TNR is undervalued (not arguing it is, just comparatively) With this time last year the price being $3.15
In the year since net profit has grown 12% (19m - 21.4m) Id suggest there's also been a decent debt reduction with operational revenue expected to be much higher in FY16

Holding.

[biker]

It will be interesting to see the profit guidance for this financial year.
The share price doesn't reflect it but this is a company that performs with ongoing consistency,
providing cautious guidance and exceeding it, under promising and over delivering.
I like where it's headed.

[Under Surveillance]

Compared to this time last year TNR is undervalued (not arguing it is, just comparatively) With this time last year the price being $3.15
In the year since net profit has grown 12% (19m - 21.4m) Id suggest there's also been a decent debt reduction with operational revenue expected to be much higher in FY16

Holding.

Subject to whether any one-offs need to be stripped from the $21.4M for a fair comparison, the growth comparison should be $14.1M ($19M stripped of one-offs) to $21.4M. However, as Snoopy cautions, never mind the width, feel the quality.

On the face of it NPBT of $21.4M translates to fully-taxed NPAT of $15.4M. $15.4M divided by 63.5M shares gives a trailing EPS of 26.3 cps.

At the upper end of the board's payout ratio of 50-55%, full year dividends for FY2016 would be 13.3 cps. The 2016 final would terefore be 7.3 cps, imputed at about half of the full imputation rate according to earlier advice. Full imputation is to apply for FY 2017 and beyond, when quarterly dividends are to be paid.

[Snoopy]

Compared to this time last year TNR is undervalued (not arguing it is, just comparatively) With this time last year the price being $3.15

I think it is too early to say that. Last year Southern Finance was acquired for on 31st July 2015. So that subsidiary did not contribute a full years worth of profit to TNR in FY2015 (YE 31st March). The underlying TNR business was not comparable on a year on year basis

SNOOPY

[percy]

The acquisition of TUA by DPC was a game changer for DPC,now TNR.
Not only did they take over a fantastic business, which has gone from strength to strength,but they gained channels for their financial products,,ie vehicle/equipment lending and insurance.

[blackcap]

The acquisition of TUA by DPC was a game changer for DPC,now TNR.
Not only did they take over a fantastic business, which has gone from strength to strength,but they gained channels for their financial products,,ie vehicle/equipment lending and insurance.

That is how I read it too Percy. At first I was skeptical when they announced that they were looking at taking over Turners, because I thought they would be too big and cumbersome and stop DPC's agility. But what you say makes sense and I think Paul Byrnes saw that too (after all he did have a position on the Turners board) and now DPC or TNR can reap the benefits, many of them synergy but also like you say complementary. I will be continuing to purchase under $3.
Note, in 2012-2013 DPC went to 37 cents (or $3.70 post consolidation), but they are now in a far superior shape than then.....

[janner]

I just love today's announcement;"Profit ahead of forecast and guidance."
Look forward, with confidence to the 30th May's full year's result.

Not what you said to me that many months ago, Oh wise one :-))

[kizame]

I think Percy sold out,but bought back in later, a change of heart I think. But why not its a good company with tight management.

[percy]

Yesterday I misread the TNR result.I got mixed up with taking the abnormals as normal.
The result offcourse did not include a full year of the "Turners auctions".
I also failed to factor in the fact TNRs are not paying full tax.
The 2016 projection was downgraded from $23mil to $20mil.
The result was not what I expected, therefore I have sold my holding.
To achieve the $23mil TNR will have to make an acquisition.Depending on what the acquisition is,the terms of the acquisition,and whether I think it is good or not,will guide me as to whether I will buy in again.

The above was posted 28/5/2015.
I brought back in on 20/11/2015,and glad I did..