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

[forest]

[QUOTE=winner69;731708]They say it’s undervalued by the market. If they are a retail

I thought it was unprofessional of directors to comment on the share price of companies they representing.

If the directors really believe the share price is undervalued why not just simply have an share buyback.
Instead of spending money on an Aussie listing in the hope the Aussies push the SP up.

An substantial buyback is more likely to give share holders the confidence the directors are looking for.

[winner69]

[QUOTE=forest;731717]

They say it’s undervalued by the market. If they are a retail

I thought it was unprofessional of directors to comment on the share price of companies they representing.

If the directors really believe the share price is undervalued why not just simply have an share buyback.
Instead of spending money on an Aussie listing in the hope the Aussies push the SP up.

An substantial buyback is more likely to give share holders the confidence the directors are looking for.

Maybe they don’t enough spare cash for that

Don’t think you can use insurance reserves (the float) for that sort of thing .....but don’t give them ideas

[percy]

So many negative posts.?
Need a lot more to shake my strong "conviction".
I trust my own research.

ps.Well done ANZ Securities,having updated the right number of TRA shares on issue.89,480,315.

[winner69]

I was most impressed with the enthusiasm shown by one person at the AGM when he expalined that car sales go up when the minimum wage goes up and that is supported research in the United States.

He sounded really excited

Family support should help

[forest]

[QUOTE=winner69;

Maybe they don’t enough spare cash for that

Don’t think you can use insurance reserves (the float) for that sort of thing .....but don’t give them ideas[/QUOTE]

My way of thinking is if a company can not buy some of their own shares back because of financial restraints then the company is financially sailing too close to the wind or the story "our shares are undervalued " they do not really believe themself.
I note 2 directors, Martin Berry and Anthony Vriens seemingly do not believe the TRA share price is a bargain as neither have a shareholding in the company.

So the question in my mind is "which directors are the clever ones, the ones with a shareholding or the ones who do not even have a token amount invested?"

[forest]

Sorry Percy, I am not trying to shake your conviction. It is just that some of the observations do not give me much confidence.
Often when I lose confidence in a company I move on to the next one, in this case I post my concern to see if others can ease them.

[Beagle]

If they can pay 16.5 cps this year fully imputed that's 16.5 / 0.72 = 22.92 cps gross which gives a gross yield of 7.8%. Interestingly at a 55% payout ratio and if eps is 30.6 cps this year that would equate to 16.83 cps in dividends or 23.375 cps gross and lift the yield to 7.95% at $2.94.

My recommendation to the board to fix the SP if they believe its undervalued is as follows.
Lift the payout ratio to the same level Colonial Motors use which is 65% and contemporaneously initiate a dividend reinvestment plan with say a 3% discount to five day ex divvy vwap as the exercise price for those that choose to reinvest their dividends.
This could actually be cash flow positive for the company as I would think that a moderate lift in the dividend payout ratio would easily be covered by those looking for a further reinvestment opportunity. (I also note that all previous capital raises have been done at more than a 3% discount to VWAP so this is a more cost effective way to raise capital)

At a ~ 65% payout ratio fully imputed if they can earn eps of 30.6 cps this year that would represent 19.89 cps, call it 20 cps which with full imputation credits would be 20 / 0.72 = 27.77 cps gross and the gross yield becomes 27.77 / 294 = 9.45%. More people would then be inclined toward owning it as a high yield opportunity.


Maybe I should flick a copy of this post to Todd Hunter - thoughts folks ?

[LAC]

If they can pay 16.5 cps this year fully imputed that's 16.5 / 0.72 = 22.92 cps gross which gives a gross yield of 7.8%. Interestingly at a 55% payout ratio and if eps is 30.6 cps this year that would equate to 16.83 cps in dividends or 23.375 cps gross and lift the yield to 7.95% at $2.94.

My recommendation to the board to fix the SP if they believe its undervalued is as follows.
Lift the payout ratio to the same level Colonial Motors use which is 65% and contemporaneously initiate a dividend reinvestment plan with say a 3% discount to five day ex divvy vwap as the exercise price for those that choose to reinvest their dividends.
This could actually be cash flow positive for the company as I would think that a moderate lift in the dividend payout ratio would easily be covered by those looking for a further reinvestment opportunity. (I also note that all previous capital raises have been done at more than a 3% discount to VWAP so this is a more cost effective way to raise capital)

At a ~ 65% payout ratio fully imputed if they can earn eps of 30.6 cps this year that would represent 19.89 cps, call it 20 cps which with full imputation credits would be 20 / 0.72 = 27.77 cps gross and the gross yield becomes 27.77 / 294 = 9.45%. More people would then be inclined toward owning it as a high yield opportunity.


Maybe I should flick a copy of this post to Todd Hunter - thoughts folks ?

I think you should, I am up for that. I think at 65% there should be more interest by divie hunters

[winner69]

Good question for the next AGM, someone ask a director when the last time they bought a second hand car was (either for themselves or someone else

Byrnes not a car salesman either ......at least how he tried to sell a few at the end of the AGM

Not a good effort at all ...but we’ll forgive him, after all he’s an accountant

[winner69]

So ~4.6 million shares issued to those who converted their bonds

But ~2.8 million shares went to Bartel

Add Beagles lot sort of says not many converted their bonds to shares ......a lack of confidence in the future or a vote of no confidence.