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

[Nitaa]

hoop. i tend to agree. next year writedowns could be somewhat significant

[thereslifeafter87]

I havent had a read of the year end report. One thing that does surprise me is the $6m profit. Given the turmoil with finance companies of late this result seems unusually high. this gives the company a great earnings per share but somewhere in the murky waters is the true picture imo.

an accoutant might be able to help me on this one.. im thinking on these lines especially with a lot of default payments especially in the MV finance sector. an account receivable is money owed and on face vaule may look good on the books...is this a true reflection on the company's position? especially if many of these loans have been written off as a bad debt so to speak. im not sure if i have explained it well enough but it does seem like an unexpected higher profit given the months long problem in the mv sector and other underpeforming areas.

it reminds me a couple of the lines commonly used by prostitutes and accountants. a guy ask a prostitite what her name is and her reply is ..what do you want it to be? a md ask his accountant what the profit for the financial year and his/her reply is...how much do you want it to be?

They took a big bath with massive bad debt write offs last year. The NPAT result this year will be boosted by that.

[thereslifeafter87]

DPC might also be factoring in expected gains from the sale of the properties they have mentioned in announcements - this would add to profit, allowing them to report higher earnings.

[Balance]

I see that viking is down 25% on thin trade todat any prizes for guessing as to why?

Try figure - VIK was buying/topping up DPC at over $2.00 right up to March this year and now selling out at $1.12. Desparate stuff - money to keep other investments afloat?

Guess the market is waking up to the fact that VIK has made some dreadful investments. ICP Bio is one and VIK was busy pumping in money via loans to find that it was broke and needed recapitalisation.

[Dr_Who]

Nita
$6M profit sounds reasonable, (MV business not sold yet and it's 1/2 way thru the 2008 financial year) Last year it was $8m less $5M writedowns.

More interesting is BK and Viking...they don't hold a blocking stake in DPC anymore. Current % held : 8.0152793
Last % held : 10.6313

Methinks it was a reluctant sale...needed cash for BIO ????

Sell one dog at a huge lost to hold up another dog? What kind of investment strategy is that?

[Hoop]

Sell one dog at a huge lost to hold up another dog? What kind of investment strategy is that?

No idea!!...not in my investment theories books
I don't think I would class DPC as a dog but it seems Mr Market has.
If it is a dog, it has a lot less fleas than BIO. DPC will survive, not sure about BIO survival chances, however.

BK is or was reputed to be an astute business person...not sure what he is up to at the moment, but he seems to have dug himself I bit of a hole. I would not write off BK yet, he has the ability to bounce back. I still regard him as a possible menace with DPC, but less so now.

Have you noticed....all investors in DPC have been stung in the last few years...talk about a poison chalice

[dsurf]

"Have you noticed....all investors in DPC have been stung in the last few years...talk about a poison chalice"

Except for the largest insider BKburger who sold the poisoned wine as champagne at circa $2.80 to Rodney who is exceptional at two things: losing other peoples money and drinking champagne they have bought him

[Nitaa]

on face value DPC looks a good investment to buy shares into. what their real position is a little hard to fathom therefore making it a huge gamble to buy into. another issue is that people investing into fixed deposits or other investments where they are only getting 1 or 2% higher than the banks are now getting cold feet.

imo dpc sp demise started to turn to custard around the time that bk and rp were doing some back room deals.

with regards to vik i think that he has become too desperate to chase the so called easy buck. set up his vik with stuff all. no direction, no forcasting. to me bk lost his soul when he started to deal with rp.

all said and dome dpc still looks the most solid of finance companies but i don't have the fanny to buy.. at least not in the next 12 months.

discl. brought this stock at $2.82 and sold for $2.50

[dsurf]

VIK holds BIO & DPC shares as it's only sellable assets. I am assuming that since BIO is facing a huge funding problem, that VIK loans to BIO are probably unrecoverable unless BIO returns becomes profitable. Clearly it won't or it would have by now. This means that VIK can either sell DPC shares or go to the market for more money. Now is a terrible time to go to the market and admit a cash flow crunch for VIK so it would seem their only option is to keep on selling DPC. I am also assuming no-one would want to buy the loss making BIO assets.

[easy money]

IS five star finance connected to dpc?