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

[winner69]

Only down 1 cent today ...not much

Tomorrow’s another day ..probably go up

[couta1]

Only down 1 cent today ...not much

Tomorrow’s another day ..probably go up

And up a cent from a few years ago before the 10:1 consolidation when it was 28c.Lol.

[percy]

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.

Yet just over 2 months later, with no trading update from the company, you are calling them a "pig dog."????????????

[winner69]

Was Beagle easily seduced by cool looking slides, warm fuzzy words and slick car salesmen?

[winner69]

Just as this will never happen in NZ even though securitisation and car loans are often not a good mix

https://insight.factset.com/car-comp...-delinquencies

[Beagle]

Yet just over 2 months later, with no trading update from the company, you are calling them a "pig dog."????????????

To be clear I am saying the share price and technical analysis is as ugly as a flea infested and mange affected pig dog. This is an undisputed fact, it just looks plain ugly. Fundamentally it looks sound but Mr Market is telling us something is wrong.

The fact that they changed the timing of their new bond issue, (which at the investor presentation was suggested would be after the maturity of the current bonds) and brought it forward suggests they need the money from that new issue to repay the 50% of bondholders who didn't convert to shares back. This is another little clue that all is not going completely to plan.

My preference is to invest in high growth companies where TA and FA are in alignment and to hold a basket of high yield dependable shares as well. Since that earlier post I have realised that because of all the new shares issued last year and this year EPS growth for FY19 will probably only be in the region of 4%. For me that puts TRA into more of a yield case investment than a growth one and yield is no good if the SP keeps going down is it !

The directors fee increase also looks like the aforementioned animal. If things were going well why do shareholders (who must surely all be in the red) keep hitting any decent sized bid over and over and over and over again ?

[couta1]

Directors should actually feel embarrassed at asking for an increase in fees given the current SP(Which they will all be well aware of) Directors should not be Troughers whilst shareholders get a capital haircut. PS-I know it's an idealistic outlook but one can always hope.

[winner69]

Beagle

The fact that they changed the timing of their new bond issue, (which at the investor presentation was suggested would be after the maturity of the current bonds) and brought it forward suggests they need the money from that new issue to repay the 50% of bondholders who didn't convert to shares back. This is another little clue that all is not going completely to plan.

Hmmmm .......no waty, cash management better than that surely

[percy]

Directors should actually feel embarrassed at asking for an increase in fees given the current SP(Which they will all be well aware of) Directors should not be Troughers whilst shareholders get a capital haircut. PS-I know it's an idealistic outlook but one can always hope.

Agree...……………………..

[Beagle]

Hmmmm .......

Share price 31 January 2013 $3.40
Share price 31 January 2017 $3.85

Current share price after all these years $2.89.
What has the market been trying to tell us for all these years that flies in the face of their national road show presentation ?
Hmmmmmmm ????
Its just not happening, (wealth creation) for shareholders is it ? Why not ?

P.S. Colonial Motors share price 31 January 2013 $4.00 Current price $8.27.