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

[Baa_Baa]

@Beagle, the chart is a mess for sure, no chartists would buy now. But holders at this advanced stage might have a different view from entry investors, as percy points out. Looks to me like a risky proposition from both viewpoints. There's less risk elsewhere, even in an otherwise topped out risky market with this being exposed to overhanging debt quality issues and geopolitical sentiment, why put it here, or even hold?

[percy]

So when will TRA and HBL amalgamate ?

Thursday week.............................................. ..........................................lol.

[LAC]

I see this year will have great revenue and profit but flat EPS, however I am expecting EPS growth in the following few years. Lots of risk in TRA but they are in a good place at the right time imo. What are you guys expecting NPAT to be full year?

[Beagle]

@Beagle, the chart is a mess for sure, no chartists would buy now. But holders at this advanced stage might have a different view from entry investors, as percy points out. Looks to me like a risky proposition from both viewpoints. There's less risk elsewhere, even in an otherwise topped out risky market with this being exposed to overhanging debt quality issues and geopolitical sentiment, why put it here, or even hold?

Couldn't agree more.
Last time I noticed it second hand sales at Turners were up 1.7% which is only in line with population growth primarily driven by new immigrants, (certainly doesn't fit most people's understanding of the term gang-busters). Like some others I think EPS is going to be flat or very close to flat one way or the other.

[Joshuatree]

The car sector has been on a tear as seen by Trademe TME motors division with strong revenue growth.

TME Investor presentation 28 February 2018

[percy]

Craigs research this morning on gross dividend yields, has TRA's increasing from 6.74% [2018] to 7.4% [2019],an increase of 10.45%.
Just love companies that have the capacity to pay increasing divies.
Divies going gangbusters too.!!!..lol.

[Beagle]

The car sector has been on a tear as seen by Trademe TME motors division with strong revenue growth.

TME Investor presentation 28 February 2018

Interesting. Speaking with the GM of one of the major franchise real estate agencies this morning, the online channels like Trade Me is slightly undermining the traditional real estate sales model. I for one think the same thing is happening with used cars and have noted quite a significant difference in the growth of new cars sales which have been very strong to the modest growth TNR are experiencing through their more traditional sales channels. I do note however that TNR are partnering up to a significant extent with Trade Me for some of their auction sales and Buy Right cars have their stock listed on Trade Me as well. A case of if you can't beat them, join them ?

LOL Percy, you're incorrigible ! I think you'll find the yield might be "slightly" better over at HLG..but I think you know that already

[RTM]

LOL Percy, you're incorrigible ! I think you'll find the yield might be "slightly" better over at HLG..but I think you know that already

Stop it you two. Just own both !

[Marilyn Munroe]

I for one think the same thing is happening with used cars and have noted quite a significant difference in the growth of new cars sales which have been very strong to the modest growth TNR are experiencing through their more traditional sales channels.

Some of us who are movie stars whose charms are starting to fade will remember the impact Jap Imports had when they first arrived in New Zealand.

They offered a good quality used car at a significant discount to buying new. Does this differential still exist? I say no.

Anybody who has watched television recently will be aware of the abundance of commercials from new car brands offering sharp prices and cheap financing.

I believe the new - used car balance is tilted heavily towards new and this is not the market TNA thrives in.

Boop boop de do
Marilyn

[Beagle]

Some of us who are movie stars whose charms are starting to fade will remember the impact Jap Imports had when they first arrived in New Zealand.

They offered a good quality used car at a significant discount to buying new. Does this differential still exist? I say no.

Anybody who has watched television recently will be aware of the abundance of commercials from new car brands offering sharp prices and cheap financing.

I believe the new - used car balance is tilted heavily towards new and this is not the market TNA thrives in.

Boop boop de do
Marilyn

I couldn't agree more luv. When you can buy a brand new small car for about $20K often with no deposit and interest free finance this significantly undermines the traditional $12-15K used import market which used to be the mainstay of many a used importers car yard. In addition its fairly common to see the new vehicle franchises offering weekly payments as low as around $70-80 a week, sometimes less, to finance a brand new car and often makes more sense for customers to do this when you take into account the extra fuel efficiency, its cheaper maintenance, better reliability, new car warranty and obviously greater durability. I helped both our kids into a very late / brand new small car a few years ago because the economics made greater sense. Just don't get me started on what they spent the cost savings on...
What you suggest is precisely the reason new car sales have indeed been going gang-busters for years now.