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

[percy]

LOL...speaking of Jaguar's...you know you want a decent Jaguar with that new home of your's Percy...go on, let the moths out of that wallet.

The 2004 "Lovisca" Nissan Bluebird Slyphy did every thing perfectly on our recent trip to Pohara Beach.
In fact the 7 hour drive back through The Lewis Pass with plenty of snow,and a huge amount of traffic, it ran like a dream.Does not use a great deal of gas.
Most impressive was the fact my back survived the trip well.Got out of the car, and had no trouble walking,and no stiff back.
Still under 25,000 on the clock.
A truly great car,which should do me for the next 10 to 15 years..

[winner69]

Back on topic please

Is Turners good for a punt ...or just a crap investment ...at current share price.

[percy]

Back on topic please

Is Turners good for a punt ...or just a crap investment ...at current share price.

The answer will be known late this month when they announce their result.

[Beagle]

Back on topic please

Is Turners good for a punt ...or just a crap investment ...at current share price.

It would be good if senior management made it crystal clear what the earnings per share growth is, (if any), rather than making it all about headline profit growth. Heck I don't even mind if they use the fancy weighted average number of shares on issue to try and make it look better !
No question the company is growing but if they keep issuing so many shares year after year after year its makes the growth almost meaningless for shareholders, (probably really good for management bonus's though). This lack of projected EPS growth is quite clearly the reason the SP is underperforming. No doubt more shares to be issued this year when the convertible bonds mature. That should give them ample funds for a good team building retreat at say the Wairaki conference centre at Taupo to try and make some meaningful inroads on improving company culture. (You don't turn that sort of thing around overnight)

[winner69]

It would be good if senior management made it crystal clear what the earnings per share growth is, (if any), rather than making it all about headline profit growth. Heck I don't even mind if they use the fancy weighted average number of shares on issue to try and make it look better !
No question the company is growing but if they keep issuing so many shares year after year after year its makes the growth almost meaningless for shareholders, (probably really good for management bonus's though). This lack of projected EPS growth is quite clearly the reason the SP is underperforming. No doubt more shares to be issued this year when the convertible bonds mature. That should give them ample funds for a good team building retreat at say the Wairaki conference centre at Taupo to try and make some meaningful inroads on improving company culture. (You don't turn that sort of thing around overnight)

Jeez beagle - you expect car salesmen to tell you bad stuff like EPS not growing much ....even if the wheels are falling off the car it’ll still be all shiny and revved up and a great buy eh

They’re wheeler dealers mate (maybe a bit harsh but ....) ... do everything to make a buck even if they have to be given a buck to make that buck.

Wairakei ....going there you may as well go to Huka Lodge

[percy]

Turners achieve what they say they will do.

[Beagle]

Turners achieve what they say they will do.

Agree they have a good track record of doing that by issuing new shares such that EPS growth has been about 4% and might be this year too.
Meanwhile over at Colonial Motors now in their 100th year of operations and trading on a lower PE and without issuing any new shares in their most recent half year result net profit after tax was up 22%. I think if TH was being perfectly honest he would suggest that its tough to compete with brand new fuel efficient vehicles when manufactures support sales with no deposit interest free deals and in many cases low priced or free multi year service plans.

The economics of a small brand new small car for $20K with its very fuel efficient engine, very low maintenance and interest free finance is better than an old clunker for $10K - $12K with the significant extra fuel consumption, substantial extra maintenance and of course paying normal finance company interest rates. That is a fact and I've run the ruler over this for several clients over the years and that fact isn't going to change anytime soon with fuel prices headed north and new car and engine technology getting even more efficient as time goes by. Then there's the extra safety as well with most modern small cars being five star safety rated, something that some on here ignore but I would suggest is also a compelling motivating factor for many families.

I don't see the statistics of new car growth far exceeding used car growth changing going forward.

[percy]

Agree they have a good track record of doing that by issuing new shares such that EPS growth has been about 4% and might be this year too.
Meanwhile over at Colonial Motors now in their 100th year of operations and trading on a lower PE and without issuing any new shares in their most recent half year result net profit after tax was up 22%. I think if TH was being perfectly honest he would suggest that its tough to compete with brand new fuel efficient vehicles when manufactures support sales with no deposit interest free deals.

As far as I know CML do not have their own insurance company,or their own finance company.
TRA by bulking up their sales chanels,both Truck and Equipment with more sites,their car sales with BuyRight cars and more Turners sites ,gives them the added momentum to add finance [again bulked up] and insurance [yes that too bulked up].
Bulking up their core business has added strength to Turners ongoing earnings.It is a lot better,stronger business,and well focussed for future,with the capacity to add further strength to each sector they are in,ie vehicle sales,insurance,and finance.The possible entry into vehicle servicing will add another ticket for Turners to clip.
Not being part of a franchise group means they can react to market forces very quickly,and nothing stopping them opening sites where ever they want to.
Moving salesmen's approach from auctions to selling, is best done via pay incentives.
The best salesmen in any business are the top earners,books to real estate.
It really works...lol.

[couta1]

I wouldn't buy a brand new car unless I was certain it was the last one I was ever going to own,too much loss as soon as you drive it out of the showroom.

[Beagle]

The shares were 28 cents about 4 years ago Percy before the 10:1 share consolidation. Around $2.80 about four years ago to $3 now is a very dismal performance against a booming market over the last few years so I would say the market is telling you that Turners have a heck of a lot to prove going forward. If things are going so well why has the SP been in such a downtrend for the last year or so ?

Couta1. Not everyone is highly mechanically minded and capable like you. Most people face ever increasingly and potentially very serious repair costs as their cars get really old. Eg, a good mate phoned me last evening and said he's got a serious whine in the diff of his Ford Falcon. Its done 280,000 km's but is only 10 years old, what to do ? Does he keep tipping money down a hole on that car, (quoted $1,500 plus GST to fix) knowing there's probably a range of other problems coming shortly ? (Known issues with that model are water pumps, alternators and he admitted his gearbox is already very tired and could d fail at any time in the near future).
What would be your advice to him ?

On the other hand by way of example last year I bough a 2017 demo Honda Civic sedan done just 5,000 km's for $26,500 for Mrs Beagle (5 star rated for safety of course ) You would struggle to find a 2017 Honda Civic on Trade me for that price now. If you buy a good brand at a good price I would argue the initial year's loss is not as great as what many people think. We have a 3 year service contract on that car for $900 and its covered by a 5 year unlimited mileage factory warranty. These sort of long warranties are another reason people buy new or near new cars. What price complete peace of mind ?

In terms of depreciation on used cars especially used Japanese imports try buying a 10 year old second hand Japanese import for say $12K, drive it around the block and try trading it in at another dealership, you might get about half back if you are lucky.

I maintain that the new vehicle manufactures are making a compelling case for people to update their vehicles with some great new technology like blind spot monitoring, adaptive cruise control e.t.c., increased fuel efficiency, greater safety, low or no interest finance terms, long warranties and free or cheap service plans.
For many people with good credit who are eligible for these no interest deals the package as a whole is quite compelling compared to the alternatives and this is why the growth in new vehicle sales, about 9% last time I checked is substantially greater than used vehicle sales.

We can all have opinions but the sales statistics (new vehicle growth v used), speak for themselves and have done for quite some time and I for one don't see that changing going forward.