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

[mskv]

Lets really review what has happened to DPC.

Yes BK did sell to Bridgecorp (in hindsight a great deal wish I was part of) in 2004
He resigned from DPC when price was $2.50
His shares were tipped into Vik
DPC appoints CEO with no industry or CEO experience
No finance sector experience on the Board or management at a time when the well predicted demise of the sector was under way.
Vik buy shares hoping to put a Director with finance exp
25% of St Laurence purchased for $30m!!! with option in a years time. Podmore added to board
Media criticisms from both DPC and BK (who starts it is debatable)
Did not manage their cash (requiring a urgent top up loan from shareholders) after spending $20m in cash to buy St Laurence and 45m in two loans(done with in six months of the loan from shareholder)
Criticisms of the performance of the company have born true as the company has failed to generate operating profits, lacks strategy for future.
Current Board's best approach is to put it into volantary receivership and hand back the Net asset backing of $1.70 to shareholders
Money to be made in this stock in the wind up!!

[James Bond]

Let's review what happened.

BK sold his shareholding to Bridgecorp in a deal which was censured by the NZX.

BK started buying back into DPC at over $2.00, trying to regain control.

BK could not regain control, start criticising the company whilst he sold out of his shareholding at ever lower prices.

We are missing something here, geniuses?

Balance, please be rational, how can you condem BK who sold 19.9% of DPC at 3.70 and know they are worth 47 cents.

BK sounds like a bloody genius!!!

Yes, he made have bought more at around $2.00 but it was peanuts in comparision to what he used to own, Play Money, Bloody Play Money.

BK is the guy who got out of the finance company sector at its top, told everyone it would turn nasty and nobody listened. Many would have now wished they had!

If i was the owner of DPC i would get BK on the phone and ask him to come and sort out this mess. Cause you can bet you last dollar on the fact that the current management only have on solution. Sell all assets before they go to ZERO!!!!

[Stranger_Danger]

BK is a genius?

This is a guy who seems to have seen the credit crunch coming - note his comments of a few years ago about profiting from a time when asset prices start to fall via VIK.

But, what is he in? Penny dreadful BIO and DPC, held through penny dreadful "investment" company VIK!

I see little sign of BK profiting from a period when assets are being repriced due to risk being repriced.

What he has said doesn't count : what counts is what he has done. As the old saying goes, predicting rain doesn't count, building an ark counts.

Regarding the new CEO - and comments that he is effectively a highly paid liquidator - I think there is actually an element of truth in this, but, the negative inference is completely wrong. Highly paid? He doesn't set his pay level. Liquidator? Well....

You guys appear to be saying that the company sucks, the sector sucks, the board sucks etc.

You then bash the CEO for implementing a strategy that involves preserving cash, collecting loans in, not making many new loans etc. In other words, winding back / winding down the business, or at least the size of it.

If we accept that "everything sucks" is the correct analysis, then I see the actions of the CEO as rational.

[COLIN]

Current Board's best approach is to put it into volantary receivership and hand back the Net asset backing of $1.70 to shareholders

I absolutely wouldn't count on the $1-70 actually being there. No way! Unless one has inside knowledge as to the NRV of the present assets in a forced sale.

[dsurf]

The CEO deserves criticism for:

Acting to slowly when the finance company fallout was well predicted
Having no strategy
Not being focused (& telling everyone)
Not having a direction (&telling everyone)
Selling Equity at the worse time possible
Destroying the share price via imcomprehensible public fighting with BK
Destroying share holder loyalty
Destroying a potential funding base from those shareholders
The lack of operating profit
The hopeless board that has not changed
Being the top guy who has the responsibility

Starnger Danger -What does he deserve praise for?

[Stranger_Danger]

dsurf,

In ordinary times, much of what you say would be relevant. Today though, he only has job : make sure the company survives the next 12 months, then work out what to do at that stage.

I believe the moves he is making - with the cards he was dealt, and dealt to himself early in his reign (St Laurence) - are the correct ones to maximise the chances of survival.

[Dr_Who]

BK is a genius?

.

He is a brilliant investor! Brilliant at destorying shareholders value. Would anyone here invest in VIK? LOL what a laugh.

Hey MSKV, since you love BK so much, do you own any VIK shares? If so at what price did you get VIK? If not, then you are full of shiat.

[mskv]

Dr Who

Interesting response. I seem to have hit a raw nerve.
I am a disgruntled DPC shareholder who paid too much and have watched the value be systematically destroyed to under a third of the net asset value.

I have not endorsed BK at all, this is about the performance of this company and its CEO.

[James Bond]

dsurf,

In ordinary times, much of what you say would be relevant. Today though, he only has job : make sure the company survives the next 12 months, then work out what to do at that stage.

I believe the moves he is making - with the cards he was dealt, and dealt to himself early in his reign (St Laurence) - are the correct ones to maximise the chances of survival.

Stranger Danger, what do you mean by the card he was dealt?
The cards were a nice set, orchestrated by BK who was furiously diversifing income streams of DPC prior to his departure. BK was predicting the downfall of many finance companies, and was setting up DPC to profit from it, building significant cash reserves. Unfortunately Walker steps in with a merchant banker attitude and just had to buy something, ST Laurence, at the peak of the market at a premium price.

SD if you attended the last DPC AGM you would have seen Podmore on stage smiling from ear to ear, one happy boy. He was like the cat that got the cream, Walker bought a PUP as they say.

[POSSUM THE CAT]

James Bond I agree buying St Laurence was very stupid