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

[Beagle]

Neighbour came over to have a coffee but really wanting to know what a share buy back was

I just said that’s when a company buys shares from the likes of you and your mates because they think they are too cheap and should be worth more. If you wait long enough they might even buy yours back at $3.20 (what he and his mates paid for them)

That’s good they keen to buy them he said because nobody else wants to buy them ....and he/they might hang in there a bit longer. I didn’t bother answer his question ‘Do they use our money to buy these shares back? ...that was all too hard. They still worried they still under water with Oceania and feel that’s a dud as well.

You can reassure your neighbor that oceans of money will flow from owning Oceania long term...tailwinds for Africa...can't go wrong.
Every dog has its day...just got to be patient to wait for TRA to bark. The usual suspect tells us everything is fine and dandy...what could possibly go wrong lol

[winner69]

I did not expect such a violent share price reaction downward... given TRA had already been trending downward post FY results... The HF results were not good, nor bad

Should have converted my bonds back to cash and invested in ARV

Metros result was not good, nor bad either and see what happened there

Profits boosted by a lumpy one off gain when balance of business going backwards not good

[couta1]

HaHa love the panic merchants work, advantage of having an XXXOS holding is you know you can't sell unless you want to settle for $2 a share.Lol

[percy]

At $2.57 it brings it down to $11.3m. Still a bit of cash to find

Buying back 4,474,000 shares at $2.57 would require $11.498 mil.
Cost of funding at 5% would be $574,909 which would be deductable.
Savings on dividends, which are paid from after tax profit would be $738,210.

[bull....]

be a steady grind down in share price , slowing sales next year filter thru there whole business

[winner69]

Hey Beagle - was this the answer to the question you asked atbthe AGM that they deftly avoided answering (ie subtly told you to go away)


• Impairments on higher risk lending categories has been worse than expected.

A few points in the presentation seem to be at odds at what was said at road show and AGM presentations

[couta1]

be a steady grind down in share price , slowing sales next year filter thru there whole business

Pure guesswork and fearmongering bull, oil prices plummeting equals more cash to buy cars.PS-This business has many strings to it's bow.

[minimoke]

Buying back 4,474,000 shares at $2.57 would require $11.498 mil.
Cost of funding at 5% would be $574,909 which would be deductable.
Savings on dividends, which are paid from after tax profit would be $738,210.

sounds a bit liek a Briscoes add where you can spend $60 to save $40 on a $100 frypan.

There is a line missing though

Buying back 4,474,000 shares at $2.57 would require $11.498 mil.
Cost of funding at 5% would be $574,909 which would be deductable.
Expenses go up, profit goes down. Dividend reduces
Savings on dividends, which are paid from after tax profit would be $yet to be calculated

[bull....]

Pure guesswork and fearmongering bull, oil prices plummeting equals more cash to buy cars.PS-This business has many strings to it's bow.

no lower oil and petrol prices help pay for increased rents , rates , food etc etc etc also slowing property market affects car purchases big time. cars are a luxury buy so they get ditched first when things slow down

[percy]

HaHa love the panic merchants work, advantage of having an XXXOS holding is you know you can't sell unless you want to settle for $2 a share.Lol

in 1967/69 I was working for ChCh Ford dealer Hutchinson Motors.
I think it was 1968 we had a drought in Canterbury.The four tractor salesmen sold one tractor between them.!
In 1974 The Labour Govt tightened Credit conditions.No finance company had funds for car loans.Dealers formed MTF.
So good years/bad years are the norm in the car sales market.Yet I know of a lot of extremely wealthy car dealers.
Having shares in the only fully veterically intergrated business in this sector;ie property,vehicle sales,finance,insurance,service and end of life means Turners are "well positioned" to weather any slow down in vehicle sales,and take advantage of any opportunities.I note further increase in their national footprint of vehicle sales sites,as well as an additional 120 new dealers added to Oxford Finance's dealer network.