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

[Snoopy]

I continue to believe the likes of Suzuki with their compact cars at around $20K, plus or minus a bit depending on model and Mazda with their Mazda 2 priced at a similar level who are both offering no deposit 5 year finance at just 3.9% and 5 years manufacturer warranty and taking into account the extra fuel efficiency of these sort of vehicles which is very much on the mind of consumers these days...these are the sort of vehicles that may be sucking some wind out of the sails of the second hand market because when you look at the whole deal, the cost to finance and operate something like this is probably cheaper than a running a bigger sized second hand vehicle in the $15,000 range.

Or if you are really smart buy that low km as new 4 year old small car privately for 60% off new price. (as I did this year)

I follow the argument that a new small car can stack up well against a higher priced late model used car for the consumer. I don't follow how this is negative for Turners though. In either case there will likely be a 'trade in' to deal with. So Turners are still likely to clip that ticket. Once the new car gets on sold, it doesn't disappear. It becomes a used car and potentially Turners are in the ticket clipping window again. What am I missing here?

SNOOPY

[minimoke]

There you go 38k at $2.50, bye bye the first few reef fish.

Another 36,200 at $2.5483 yesterday/ Thats about 0.09% bought in total. Shes going to be a long slow process.

[couta1]

Another 36,200 at $2.5483 yesterday/ Thats about 0.09% bought in total. Shes going to be a long slow process.

A slow termination of the reefies is fine by me.

[winner69]

Another 36,200 at $2.5483 yesterday/ Thats about 0.09% bought in total. Shes going to be a long slow process.

Got to March mini so plenty of time

And only 30% of the volume per day ....need more sellers to speed things up.

[minimoke]

Got to March mini so plenty of time

And only 30% of the volume per day ....need more sellers to speed things up.

At 0.5% a day they need 100 trading days to get to 5%. So they need to up the buy rate. Or not get to 5%.

So how will the market react with a buy back of less than 5%

[RTM]

At 0.5% a day they need 100 trading days to get to 5%. So they need to up the buy rate. Or not get to 5%.

So how will the market react with a buy back of less than 5%

Although it may make sense from a financial engineering perspective to buy back shares (i.e. less shares on issue = less dividend to pay out, should be less than the interest on the money borrowed, increased EPS) I don't see this moving the share price needle by much more than 5-7%. What they need is more runs on the board in terms of numbers of cars sold, profitability leading to increased dividends etc. The normal solid business metricsl Progress is going to take a few reporting cycles to be sure of what is happening. In short....I am not expecting any miracles from the share buyback and will therefore continue to enjoy the current dividend with my fingers crossed.

[mfd]

Although it may make sense from a financial engineering perspective to buy back shares (i.e. less shares on issue = less dividend to pay out, should be less than the interest on the money borrowed, increased EPS) I don't see this moving the share price needle by much more than 5-7%. What they need is more runs on the board in terms of numbers of cars sold, profitability leading to increased dividends etc. The normal solid business metricsl Progress is going to take a few reporting cycles to be sure of what is happening. In short....I am not expecting any miracles from the share buyback and will therefore continue to enjoy the current dividend with my fingers crossed.

You'd have to subtract the extra interest on the debt they are taking on to pay for the buy back as well, so maybe we could rationally expect the share price to rise by 3% or so over the next few months from the buy back. Not a lot to get excited about.

[minimoke]

You'd have to subtract the extra interest on the debt they are taking on to pay for the buy back as well, so maybe we could rationally expect the share price to rise by 3% or so over the next few months from the buy back. Not a lot to get excited about.

Then that hardly seems to make teh exercise worthwhile. I reckon they are aiming for closer to $2.90 as fair market value

From the dividend announcement "

Chairman Grant Baker said: "The ongoing positive performance of Turners

Automotive Group allows for increasing distributions and we are targeting a

minimum FY19 full year dividend of 17 cents per share (up 10% on FY18). Based

on a share price of around $2.90, this represents an annualised yield of 5.9%

fully imputed."

[winner69]

At 0.5% a day they need 100 trading days to get to 5%. So they need to up the buy rate. Or not get to 5%.

So how will the market react with a buy back of less than 5%

Love the way they include this in the announcements — Buy back of Ordinary Shares for capital management purposes which the Board believe is in the best interests of the Company and its shareholders

Mini ...100 days eh ..like doing lines at school

If they repeat that often enough they might even believe it themselves .....and think it gives credence to their desperation

[couta1]

Love the way they include this in the announcements — Buy back of Ordinary Shares for capital management purposes which the Board believe is in the best interests of the Company and its shareholders

Mini ...100 days eh ..like doing lines at school

If they repeat that often enough they might even believe it themselves .....and think it gives credence to their desperation

Must be time for you to sell out winner and stop torchuring yourself.