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

[noodles]

Can someone enlighten me why this stock is rising? Felix highlighted the "in the money" options outstanding at 10c. Is it the Geoff Ross/Bakery factor?

[Felix]

There are currently 208m shares on issue. The 12.5c options are well in the money now so you'd be a mug to not convert the options to shares in May 2013. There are 150m options outstanding so that takes you up to 358m shares on issue (acknowledging of course that people converting the options to shares will generate some cash for DPC of course).

Then there is the potential issue for shares for the potential 'earn-out' for the purchase of EC Credit Control, with some of this being in shares. There is no indication of how many more shares will be issued for the earn-out so let's be conservative and assume 12m more shares issue to take the total issued shares up to 370m. With a current share price of 26c that represents a market cap of $96m. The company is forecasting an after tax profit of $4m-$5m for 2013/14 so that puts the company on a potential PE of 19 (taking the best case scenario of $5m profit).

There are lots of positives about the company. They have sorted out their financial position, they will have cash flowing in when the options are converted, they are in position to take a leading role in the finance sector consolidation and they appear to have good leaders. I do wonder if the share price has gotten ahead of itself but I'm pleased for the company and for shareholder who have stuck it out over a few tough 4-5 years.

[bermuda]

This stockwillbe a stand out performer for 2013.

Their purchase of East Coast Credit control is a game changer.

[bohemian]

Can anyone tell me if the DFC options at 25c are value?

[Grimy]

This stockwillbe a stand out performer for 2013.

Their purchase of East Coast Credit control is a game changer.

I hope you're right, but anytime someone sells their business, it's either fully/overvalued, or you're tired.......

[noodles]

Anyone still looking at this company for 2013? Seems like a turnaround that deserves a boost in SP.

Are you having a laugh? It has doubled in the last few months.

Suggest you understand the option structure before getting in too deep.

[noodles]

Yup, thought Sparky was taking up too much of the clownosphere around here, thought I'd give it a go. Cheers

I feel like a clown too. Sold at 18c. Based on valuation!

[noodles]

That speculation sure can come back and bite you later on!

Yep, it's a speculators market ATM. No bargains. Nowhere to hide when the tide turns either.

Doesn't suit me at all.

I have more stocks on the LSE than NZX/ASX. Better value to be had.

[kerryo]

DORCHESTER ACQUIRES STRATEGIC STAKE IN TURNERS AUCTIONS

Dorchester Pacific Limited (NZX: DPC) today announced it has entered into an
unconditional sale and purchase agreement to acquire the 18.2% shareholding
in Turners Auctions Limited (NZX: TUA), currently held by interests
associated with Milford Asset Management.

The cash consideration is $9.07 million or $1.82 per share (ex dividend). A
deposit of 5 cents per share has been paid on the execution of the agreement,
with the balance of $1.77 per share payable on 20 June 2013.

Dorchester CEO, and Executive Director Paul Byrnes, said the Turners Auctions
Board had indicated he would be welcomed on to the Board.

"There is a natural alignment between Dorchester and Turners Auctions," said
Mr Byrnes.

"Clearly finance and insurance of motor vehicles
are key drivers for Turners.
Both are areas we can add considerable value to as more than 65% of
Dorchester's new lending is for private and commercial motor vehicles.
And our recently released Mainstream Insurance focuses on motor vehicle
related insurance products to the consumer market.

"Of course, we appreciate any involvement as a provider of finance and
insurance services has to make sense for all Turners Auctions shareholders.
We look forward to working with the Turner's Board and management to achieve
positive initiatives to that end," he said.

"We are also supportive of Turners Auctions' initiative of increasing local
vehicle sourcing through its 'Cash Now' product, and IT initiatives -
including the imminent deployment of a new website."

Dorchester Chairman, Grant Baker, said the investment supported its strategy
to develop an end-to-end finance business.

"It allows us to participate in the origination or 'front-end' of the market.

"This complements our acquisition of
EC Credit Control - a leading supplier
of credit control and debt recovery services - in October last year, which
gives us a profitable position at the back-end of the market.

"We are also continuing to evaluate further acquisition opportunities that
may broaden our financial services offering," Mr Baker said.

ENDS.

One more under the belt.

[stones]

It appears that things are on the up DPC. Their recovery is going well and long may it continue. This 20%... shareholding in TUA is I feel a good example of the way forward for DPC