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

[peat]

For me there is no point in slaving over the commerial effectiveness of this new arm to Turners business.
As managers of the business they must have some faith in it, and I allow them to enter that business and monitor its success (without over committing) and allocate resource appropriately, and provide shareholders with some view of how that is progressing over time.
It will become part of the evluation that we apply to management during the course of our decision making to invest or not. Based on the last year or two of performance , a short while ago I reduced my oversize holding as there had not been enough success , or clarity of vision , to justify that larger position. What I still have is now at 7% of my shrinking share portfolio though. So I remain interested and hopeful they know what they're doing. (Not that hope is a strategy)
Attachment 10953
TRA has significantly underperformed both the NZ50 and its vaguely comparable sector buddy CMO although some recovery has recently taken place. Is this just a return to mean though? I think that based on the above things I've said it is unlikely to become an out performer any time soon, and should this price recovery continue I will probably exit completely.

[SCOTTY]

I sold out of my TRA holding at $2.90 ending my relatively short involvement as a shareholder (former bondholder) in TRA - while the dividends are great and I came out with a pretty small capital gain, at this price (around $3) I see it 'pretty fully valued' (for now) with not much room to grow capital gain wise or dividend wise for the immediate period.

Good luck to all holders.

(note: despite my name, I am not actually a trader lol so I don't sell out often)

I do not understand how TRA can be fully priced on an 8% gross yield (ex divi) when you would be very lucky to get 3% with a bank deposit. In my opinion this should be the valuation focus for all yield stocks. In this case there is plenty of room for share price growth unless you don’t believe that the dividend can be maintained?

[Beagle]

I must admit this rebranding stodgy old "renting" to brave new world "subscription" is pretty fabulous. Perhaps if Eaqub had called Generation Subscription instead of Generation Rent younger people would be feeling better about housing costs.

I guess TRA may have an advantage in buying cheap cars at rock bottom price to use in this operation and the marginal costs of service may not be that high given they already have people and branches around NZ. However, marginal cost view of the world often leads to marginal businesses that become the tail that wags the dog.

Agree. Over the years this company has consistently taken an "experimental" approach with a lot of what it does, multiple reviews, new start up's, anyone remember Cartopia which was supposed to be the all new frontier with car sales ? Multiple changes to the eligibility criteria for new customers wanting vehicle finance, (4 changes to this in 2018 were reported when I was a shareholder).
Structural reviews, lets sell off this division or that or the other...it just goes on and on and on and on.

The reality, that they never talk about is that used cars has always, and will always be an extremely competitive low margin business with very low barriers to entry and that Trade Me, (who now provide links for finance), is increasingly undermining the traditional car sales model. So too are private importers who can import and resell up to 6 vehicles per year from home with no overheads and no car sales compliance costs.

TRA has massively underperformed the NZX50 in recent years and my expectation is that they will continue to do so. This is just another exercise in seeing if they can squeeze a tiny extra drop of juice out of their existing business model and as you suggest, there is the real risk they lose focus and the tail wags the dog.

I am happy to continue to let them continue their experiments with other people's money.

[percy]

Sunda Clouded Leopard (found in Borneo with some difficulty) and Snow Leopard (not found in Borneo at all)



Whilst I will make no mention of the tedious, repetitive drivel that some hound is soiling this thread with, I will say that I am not surprised that those who are the most emotionally driven in their investment decisions seem to be the ones who stress how rational they are.

The pointless picking of a particular historical time frame that suits their argument for not being invested now could lead to someone pointing out that those who bought Air New Zealand 20 years ago are still in the red, even if they reinvested all their dividends, and thus no rational person would waste their breath on them.

Investing is all about where you see a company going in the future and the balance of probabilities that you will be in profit in your chosen time-frame.

At the moment we have a TRA uptrend that is seven months old and long may it last.

Disc: Hold TRA as part of a diversified portfolio of NZX shares, which is part of a diversified portfolio of assets.

I am still holding too.

ps.The quarterly fully imputed divie on 30th is timely.Will cover my excessive festive season spending.Went at bit overboard.!..lol

[SCOTTY]

“Tedious repetitive drivel” - I like that

Yes, I’m a happy holder, well into the black and will probably top up when funds permit.

Cheers and more beers.

[Snow Leopard]

I am still holding too.

ps.The quarterly fully imputed divie on 30th is timely.Will cover my excessive festive season spending.Went at bit overboard.!..lol

We bought ourselves 14 weeks wandering Europe so my credit cards got a little stressed.
Only got as far as Kuala Lumpur so far & we do need the French Train Drivers to stop striking by Feb , but otherwise TRA is working well .

[percy]

We bought ourselves 14 weeks wandering Europe so my credit cards got a little stressed.
Only got as far as Kuala Lumpur so far & we do need the French Train Drivers to stop striking by Feb , but otherwise TRA is working well .

Sounds like January's divie is spent.
You will be looking forward to April's divie.!!
In the meantime HGH will help out in March.
And hopefully PGW's minimum 8 cps is forthcoming.

PS.I am sure a lot of us would enjoy some of your travel news.

[DarkHorse]

"Carly"'s a pretty dull name! I would've gone for a popular Japanese girl's name - Kazumi

[percy]

"Carly"'s a pretty dull name! I would've gone for a popular Japanese girl's name - Kazumi

Me too................................lol.

[BlackPeter]

"Carly"'s a pretty dull name! I would've gone for a popular Japanese girl's name - Kazumi

Just lets hope for Shareholders that it doesn't turn into "Kamikaze".