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

[couta1]

People selling TRA at $2.48 and OCA at $1.14, completely rational market they tell me.PS-A 2 for 1 deal almost, both undervalued.

[percy]

There's no need to worry mate, just look at Percy's assurance posted on 30 November 2018.

i take it you have fallen out of love again?...lol.
Keep the faith,you will be well rewarded,may take two years,.may take three.

ps.Next years agm will be a cracker.
McGinty and Beagle in full flight.!!.
Beagle be like McGinty, and keep one share so you can attend it.Be nice if they had it at Turners Invercargill branch.!

[LAC]

$2.48 gees that’s not good, massively in the red now. Next AGM is going to be fireworks agreed, wonder if the chairman will show up knowing that’s in store.

[minimoke]

$2.48 gees that’s not good, massively in the red now. Next AGM is going to be fireworks agreed, wonder if the chairman will show up knowing that’s in store.

I think its part of the directors cunning plan. Do what you can to get as many as cheaply as possible. Then as SP rises be a little more fussy on price paid and % of target to be reached. Early days but plan seems to be working so far

[Snoopy]

Here's how I see it:

- Grant has lost it being quoted saying "This positive outlook supports the Share Buyback initiative” in the same announcement which is warning of a possible downgrade (Either that or he's talking fluff).

Or perhaps Grant Baker has a time horizon longer than one year?

- Directors may know about the business, but they don't know the first thing when it comes to understanding how market sentiment works (and how it can work against you)

You give management no credit for dropping the regular conversion of capital notes which ends the 'gaming' between notes and shares in the run up to each conversion date? Or the recognition of not endlessly issuing new shares that will depress the share price in the medium term? Or the lesson learned from not having a pro-rata rights issue?

- I would even question if the directors are any good at investing as they've failed to generate a positive return in their own TRA holdings (but we know they can certainly trough)

IIRC not many of those Business Bakery shares were issued at an equivalent price of greater than $2.50.

- TA wise (due to the trapped holders) it will take ages (possibly years) for TRA to hit $3.30 again.
- This buyback won't hold up the price if it's limited to just 30% of weekly volume.
- The buyback is the last defence of the SP by the directors (as a buyback has previously never been mentioned as a part of TRA's capital management)

The intention of the buyback is not to 'hold up the price' or distort the market in any way (at least in the short term). The 30% sharemarket volume limit is Turners way of not breaking the rules.

- They will struggle to maintain the current dividend unless market conditions improve, so a yield play this may not be.

Turners are only planning a dividend payout ratio of 60%. So profits would need to drop 40% before dividend payouts would likely be affected. And even then Turners can generate short term cash by reducing stock levels. They have done this before to retain dividends in the old TUA days.

SNOOPY

[winner69]

BlackCross, from your reading up on buybacks have come across the studies that show that PE ratios for companies that do buybacks often go lower because their equity debt profile changes (seen as more leveraged thus more risky)

So, yes EPS might increase (from less shares) but if PE contracts the share price won’t go up as much (if at all) as some punters assume/hope.

Turners could be a case in point seeing they pretty highly leveraged to start with

[percy]

I think its part of the directors cunning plan. Do what you can to get as many as cheaply as possible. Then as SP rises be a little more fussy on price paid and % of target to be reached. Early days but plan seems to be working so far

You are onto it.!........................lol.

ps.With the Dow down heavily over night, I expect the buyback could be very successful today.!!

[Ggcc]

You are onto it.!........................lol.

ps.With the Dow down heavily over night, I expect the buyback could be very successful today.!!

Or expect a further drop. Not only in this share to be fair. No share will be exempt today I think

[winner69]

$2.48 gees that’s not good, massively in the red now. Next AGM is going to be fireworks agreed, wonder if the chairman will show up knowing that’s in store.

LAC, not really ‘in the red’ are they as the shares have been cancelled.

[winner69]

Jeez, that Craig’s forecast of EPS of 22 cents for F19 (F18 was 29 cents) is a shocker

According to that marketscreener thing here are brokers earnings trend —

2018 23.4m
2019 23.3m
2020 21.3m
2021 24.6m

Pretty dismal picture and makes lies of the words/hype from the company

No wonder the share price is sinking

A strong trend in place. Trends don’t change unless there’s a shock to the system

Time for heads to roll ....whose going to be the first sacrificial lamb