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- TRA - Turners Automotive Group [previously TNR - Turners Limited]
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02-07-2018, 12:59 PM
#2511
Think I may have been one of several ST posters at the road show.
The CEO and CFO spoke to the published slides.http://nzx-prod-s7fsd7f98s.s3-websit...216/282084.pdf
Great organic growth possible here and in Australia.
This is a good business with great prospects. If I wasn’t already overloaded I’d buy more.
TRA has only 5% of the used car market. CEO says at least 10% within 5 years.
New bond issue after current one finishes. Will be longer term and won’t be convertible.
Details depend on how much cash they end up with when current bonds mature.
No more cash issues in sight. They have enough cash.
A business with heaps of potential and quarterly dividends.
What’s not to like.
Last edited by biker; 02-07-2018 at 01:08 PM.
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02-07-2018, 01:05 PM
#2512
Turners not as iconic as Trade Me ,yet but well on the way. love the linkage and glad to hold both stocks.
Trade Me Yet would make a great subsidiary
Last edited by Joshuatree; 02-07-2018 at 01:07 PM.
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02-07-2018, 01:09 PM
#2513
Originally Posted by biker
Think I may have been one of several ST posters at the road show.
The CEO and CFO spoke to the published slides. http://nzx-prod-s7fsd7f98s.s3-websit...216/282084.pdf
Great organic growth possible here and in Australia.
This is a good business with great prospects. If I wasn’t already overloaded I’d buy more.
TRA has only 5% of the used car market. CEO says at least 10% within 5 years.
New bond issue after current one finishes. Will be longer term and won’t be convertible.
Details depend on how much cash they end up with when current bonds mature.
No more cash issues in sight. They have enough cash.
A business with heaps of potential and quarterly dividends.
What’s not to like.
Thank you for your post.
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02-07-2018, 01:13 PM
#2514
Well run investor presentation. Management clearly articulated their strategy and have a goal of growing their market share to 10% within 5 years, from 5% now.
Steadily increasing amount of business done at a retail level, (as opposed to wholesale) will boost vehicle margins and generate significant growth in opportunities to cross sell insurance, finance and maintenance packages going forward.
Gradually expanding retail footprint.
Focus on organic growth in the years ahead.
Convertible bonds will be replaced with a new issue approx. a couple of months after maturity of current tranche but will probably be for a longer term, 3-4 years and probably won't have a convertibility aspect to them.
I spoke with some of the senior management after the meeting and all seemed to know their market well and impressed.
Todd Hunter impressed as a natural leader. My main reason for going was to get a handle on whether I think he is the right guy to drive future value growth in this company and he gets a big tick as far as I am concerned.
Investment case. I think in general terms the market is pricing Turners as a no growth company on a forward PE of 10 and I think there's a good case for believing that EPS will in fact show modest / good growth in the years ahead.
Summary I think this is probably the cheapest growth stock on the NZX disguised as a value play. I expect high single digits EPS growth for the foreseeable future.
Ecclesiastes 11:2: Divide your portion to seven, or even to eight, for you do not know what misfortune may occur on the earth.
Ben Graham - In the short run the market is a voting machine but in the long run the market is a weighing machine
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02-07-2018, 01:21 PM
#2515
Yes ,thanks b&B , for sharing and opinions.Now an integral stock in my portfolio.. Disclose my av entry $2.99. Taken a while to lift off but heading for higher trails by the looks.
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02-07-2018, 01:25 PM
#2516
Originally Posted by Beagle
Well run investor presentation. Management clearly articulated their strategy and have a goal of growing their market share to 10% within 5 years, from 5% now.
Steadily increasing amount of business done at a retail level, (as opposed to wholesale) will boost vehicle margins and generate significant growth in opportunities to cross sell insurance, finance and maintenance packages going forward.
Gradually expanding retail footprint.
Focus on organic growth in the years ahead.
Convertible bonds will be replaced with a new issue approx. a couple of months after maturity of current tranche but will probably be for a longer term, 3-4 years and probably won't have a convertibility aspect to them.
I spoke with some of the senior management after the meeting and all seemed to know their market well and impressed.
Todd Hunter impressed as a natural leader. My main reason for going was to get a handle on whether I think he is the right guy to drive future value growth in this company and he gets a big tick as far as I am concerned.
Investment case. I think in general terms the market is pricing Turners as a no growth company on a forward PE of 10 and I think there's a good case for believing that EPS will in fact show modest / good growth in the years ahead.
Summary I think this is probably the cheapest growth stock on the NZX disguised as a value play. I expect high single digits EPS growth for the foreseeable future.
Excellent post.
I am expecting double digit eps growth this year.!???
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02-07-2018, 02:32 PM
#2517
Originally Posted by percy
Excellent post.
I am expecting double digit eps growth this year.!???
....And the rest percy
Doubling market share in 5 years while boosting margins and all the ticket clipping along the way implies more than doubling profits so expect earnings growth of ~20%
And what PE are we on at the moment ...just over 10
Jeez I might hold on until the share price gets to $7 plus
At the top of every bubble, everyone is convinced it's not yet a bubble.
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02-07-2018, 02:58 PM
#2518
Originally Posted by percy
Excellent post.
I am expecting double digit eps growth this year.!???
Official forecast is for 13% earnings growth. With say half of convertible note holders converting to shares that will dilute it a bit.
My sense is that officially we're looking at high single digits, unofficially I think its quite possible that they're being quite conservative with that forecast. Todd Hunter did exude an air of confidence about how the company is going.
Integrating Autosure and Buy Right Cars has obviously been quite a process but my sense is the business is now very well positioned to grow organically.
Outlook going forward looks very sound to me.
Good solid company with sound growth prospects trading on compelling metrics.
I think its a good one to hold long term Winner and the quarterly dividends are a nice point of difference to most companies on the NZX and at over 7% gross we're being paid well to enjoy ongoing growth in the years ahead.
Last edited by Beagle; 02-07-2018 at 03:29 PM.
Ecclesiastes 11:2: Divide your portion to seven, or even to eight, for you do not know what misfortune may occur on the earth.
Ben Graham - In the short run the market is a voting machine but in the long run the market is a weighing machine
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02-07-2018, 03:57 PM
#2519
Yes trying to work the dilution of the bonds makes projections difficult.
The trust I help out on will convert their bonds to shares.
The larger non-convertible bond issue sounds promising.
No further capital raises, and management/directors fully focused on strong organic growth will be rewarding for shareholders.
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03-07-2018, 12:28 PM
#2520
Thru 320 she goes
Heading back to where it was once not long ago
Cmon guys ...keep topping up
At the top of every bubble, everyone is convinced it's not yet a bubble.
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