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

[dsurf]

He actually made this comment weeks ago, it has nothing to do with the big drop in the shareprice...

I must admit that I'm happy that Dorchester no longer owns Direct as I might have started getting a bit paraniod during the period between selling shares and receiving the cash in the bank.

It is not important when he made the comments - it is important when investors read them and the decide to dell. He is creating the impression that DPC does not have a viable future. This is bizarre from a CEO!

[dsurf]

Yesterday, chief executive Andrew Walker said the company was focusing on preserving liquidity, aggressively realising assets and looking for sources of funding beyond the retail debenture market.

Analyst John Kidd, of McDouall Stuart, said the finance company situation appeared to be playing out along expected lines.

Large, secure companies with diverse funding sources were benefiting from attractive lending opportunities thrown up as less secure companies, particularly those overly reliant on retail debenture funding, struggled.

The outlook was looking increasingly grim for those firms unable to secure alternate funding from the likes of banks, who were themselves now more cautious about who they extended loans to due to the ongoing international credit crunch, said Kidd. "They're taking a very risk averse approach. Only the strongest companies will be able to secure bank lines."

Walker confirmed Dorchester was finding it difficult to secure alternate funding.

"You can imagine it's not the easiest job to diversify funding when the international debt markets are suffering a rather large correction." (excuses, excuses - lack of strategic planning!)

Brian Jolliffe, managing director of Pyne Gould Corporation, which owns finance company Marac, said that should have been a priority long before recent events unfolded.

"If diversification wasn't part of the funding strategy particularly in the last 12 or 18 months then the reality is that it's going to be extremely difficult in this marketplace to be able to put those alternatives in place now."

He confirmed Marac was enjoying increased profitability from new loans it was writing.

[bermuda]

I havent studied DPC but I was speaking to someone in the know who told me things are settling down but its hard when your enquiries have been knocked 60%.

Says it all I think

As they said in the latest report "Reduced Lending sees reduction in profit." Not too hard to work out in this environment.Get out.

[COLIN]

My prediction is that South Canterbury Finance will soon emerge as the dominant player. Alan Hubbard is one of the shrewdest businessmen around. He has stocked up with oodles of longer-term funding and banking lines, well before the storm hit.

[bermuda]

My prediction is that South Canterbury Finance will soon emerge as the dominant player. Alan Hubbard is one of the shrewdest businessmen around. He has stocked up with oodles of longer-term funding and banking lines, well before the storm hit.

Fully agree Hubbard is one of the shrewdest businessmen around. That why he and Churcher have 6.2million Roma Petroleum shares (ASX RPM ) which places them as the no.7 shareholder.

This little company has a very bright future, not too sure about DP though. Check RPM out. Big big upside.

[POSSUM THE CAT]

Are Directors hoping to privatise this company slowly on the cheap

[Nitaa]

you are on to it... panning out a classic example of small shareholders missing out at the for the benefit of a select few.

[POSSUM THE CAT]

Dr Who Not if they panic and sell like they are doing at moment. Then they might have to pay valuation for 1or2 percent of the shares. Liquidation might be something to consider.

[Nitaa]

It doesnt matter how low the sp goes, if there is a T/O they will have to pay valuation which should be close to NTA which is around $1.70 or there abouts. At current levels the company has market cap of around $22 million, hence trading below its cash holdings? Can someone confirm this please.

Im no accountant so please excuse me if i dont make any sense. The problem i see with the company is cashflow. Your NTA that you are talking about doesnt clealry define the true value of the company. Simply because to company looks to have financial problems and by their own admission have a shrinking business. The ability to raise capital comes into question let alone the risk of laon defaulters. Valuation of their assets may and most probably likely are overstated.

The the tru value of the company is 1.70 per share then why is the current sp less than 50%. Something doesnt add up and forgive but finance companies that are making paper profits are going bankrupt. Is DPC next? maybe not but as i pointed out recently. I would have a big concern if HHG pulled their money out before the full term of their loan. It doesnt guarentee anything but does raise red flags.

I am still in the view that the average shareholder will get screwed and a select few will be their to mop up and make a small killing.

only my view and i hope i am completely off the mark

[lewinsky]

I am curious as to why one of the directors is buying shares. I also wonder what the share price would be if he wasn't buying.
If you look at this business, the finance company isn't lending. The investment advisary business is being sold. They have left a Reverse Annuity Mortgage business that has a limited market. They have a savings scheme that isn't linked to Kiwisaver. The insurance business i believe was tied in to the car market.
The profit downgrade means the only profit earned this year was from the sale of the Dorchester Building.
Where is there a strategy??
The loans made by the two shareholders have been repaid.
The only activity for DPC appears to be repaying debenture holders.
And yet one of the Directors is buying shares.........................mmmmmm

LEW