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16-07-2022, 09:22 AM
#7461
Originally Posted by percy
Interesting. Luckily Turners are not solely reliant on car sales. They will need to sharpen their pencils when buying cars.
Thanks for sharing.
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16-07-2022, 11:38 AM
#7462
Originally Posted by percy
it seems the article backtracks from the nose-dive, and plunge adjectives used in the headlines and initial paragraphs though
At the end it says
as buyers shied away from buying, prices for used cars were beginning to edge down.
Prices had been high, but they were softening in the used car market, Hedgepeth said.
“Prices are easing from their highs at the end of last year.
So maybe its a bit dramatic, and Turners will still buy and sell cars and make a margin whatever the prices are, though inventory value falling isn't ideal.
For clarity, nothing I say is advice....
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16-07-2022, 12:03 PM
#7463
Originally Posted by peat
it seems the article backtracks from the nose-dive, and plunge adjectives used in the headlines and initial paragraphs though
At the end it says
as buyers shied away from buying, prices for used cars were beginning to edge down.
Prices had been high, but they were softening in the used car market, Hedgepeth said.
“Prices are easing from their highs at the end of last year.
So maybe its a bit dramatic, and Turners will still buy and sell cars and make a margin whatever the prices are, though inventory value falling isn't ideal.
Having the fastest stock turns in the sector should mean falling values may have little affect on Turners.
I would think they have been reacting since January and are well ahead of the field.
We must also remember Turners auction as well as sell on behalf,so they will retain their margin on these sales.
Last edited by percy; 16-07-2022 at 12:18 PM.
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16-07-2022, 01:56 PM
#7464
Originally Posted by percy
Having the fastest stock turns in the sector should mean falling values may have little affect on Turners.
I would think they have been reacting since January and are well ahead of the field.
We must also remember Turners auction as well as sell on behalf,so they will retain their margin on these sales.
You are right ... live will go on, however - number of sales going down (i.e. less tickets to clip) as well as the value of each sale going down. Bad combination. Even if they can keep the same margin - it will be a smaller amount on the bottom line if the average sales value is lower ... and I suspect that increased competition in a receding market might even cut into the margin percentage.
As indicated before - it is a cyclical business and currently the cycle is clearly trending down.
The interesting questions are:
will this be a slope or a cliff?
Where is the bottom?
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"Prediction is very difficult, especially about the future" (Niels Bohr)
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16-07-2022, 02:07 PM
#7465
Market maybe foresaw some of that gloom …no wonder share price down 20%
BP says a cyclical ..slope of cliff …..maybe Baker et al will again be saying good buying at 3 bucks
Last edited by winner69; 16-07-2022 at 02:09 PM.
“ At the top of every bubble, everyone is convinced it's not yet a bubble.”
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16-07-2022, 02:19 PM
#7466
Just remember TRA have provided guidance of growing earnings through this down part of the cycle BP is talking about.
That article is Turners providing commentary on the wider industry which i am expecting to suffer far greater than TRA.
Maybe we get the opportunity to buy cheap TRA shares in the coming months, maybe not.
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16-07-2022, 02:40 PM
#7467
The issues facing the sector will add opportunities for Turners to increase market share.
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16-07-2022, 03:17 PM
#7468
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"Prediction is very difficult, especially about the future" (Niels Bohr)
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16-07-2022, 05:02 PM
#7469
Member
My thoughts, here they are:
1. Talk of cliff is simply nonsense. Buying a car is largely need-driven.
2. Turners will be under pressure, but nearly every other dealer will be under more. Remember that 90% of cars Turners sells is in the country already.
3. Number of motor vehicle dealers will decrease, so a bigger market share for Turners.
4. Nelson still to open.
5. Turners reputation is a bonus in these uncertain economic times.
So, of course there will be pressure on profits, certainly in the next few years. But the medium and long term picture looks good. Only short-term traders need to worry. I intend to use the upcoming dividends to buy more TRA shares.
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16-07-2022, 05:22 PM
#7470
Am seeing a lot of Tina from Turners, she is always popping up on tv and now radio. Becoming iconic or annoying depending on your perspective
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