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

[Hoop]

Oh...I forgot to mention..
Even though a share buyback plan was announced on 28/07/06 no shares were ever actually brought back.

[lakeside]

Could a buyback push the couple of 19.88% holders over 20% ?

[winner69]

quote:Originally posted by lakeside

NTA is $1.92 a share so shouldn't go too much lower as they aren't losing money, just not going anywhere fast.

down to 165 today - now thats is going somewhere ... down

wonder why?

[Hoop]

Both my finance shares took a hiding today Dominion Finance [u]DFH</u> (down 6.8%) and Dorchester [u]DPC</u> (down 5.7%). I think they are been unjustifiably tarred by the Bridgecorp's brush.

# BRIDGECORP SUSPENDS SHARE TRADING

Property finance company Bridgecorp Holdings (ranked E see below) requested its shares be temporarily suspended from trading on online platform Unlisted.

The company says it is in talks with trustees and until it has resolved issues, a trading suspension is appropriate. Bridgecorp defaulted on repayments of some term investments due to investors last week.

In April, Bridgecorp said it had $523 million of term investments with 18,000 people in New Zealand.

Once again investors are spooked.

It's been common knowledge for ages that Bridgecorp has had its troubles, so it's surprising that the market has taken fright over this announcement. I wonder if this not an overreaction. OK I do realise that there is a lot of investment money tied up with an unknown future which will affect the investment market.

There are a few wobbly finance companies around, but DFH is up with the best (ranked B). See Chris Lee's site for his A to E rankings of the best to worst in NZ finance companies. http://www.chrislee.co.nz/June%20200...ket%20News.htm DPC has dropped a rank, now(ranked C)but it is still reasonably solid, but the sharemarket is singing a different tune...St Laurence which is now a bed buddy with Dorchester is ranked A !!!!
....I don't know why DPC is being so severely punished..it's got me stumped.

Also I am getting sick of making excuses for DPC. Getting close to waving the white flag on this stock and realise whats left of my profits. Held this stock for 10 years now.

You hear and they react on the bad news, what about todays good news?
# HANOVER FINANCE REPORTS $60M PROFIT (UP 5.4%)(Ranked B)

[Prophet]

Unfortunately I think the drop in DPC shareprice can partially be attributed to ill informed / popular belief that Bridgecorp is still a major shareholder in DPC. Still even the informed have reason to stand wary of putting good cash into the finance sector in general and DPC specifically (while things are uncertain with regards the company's intentions with St L). Maybe a bigger deal to be done with Bridgecorp scraps, DPC and St L. Interesting times and DPC at an attractive price; still not willing to add to my position when there are more certain stocks around to invest in.

Watching closely to see how things unfold.

[lewinsky]

I think the reason for the drop in share price can be found when you read the Annual Report.
The Annual Meeting should be a cracker!
LEW

[Bling_Bling]

Maybe it is an opportunity for DPC and ST L grp to pick up the pieces of Bridgecorp at bargain prices.

[lakeside]

They are saying liquidity was the main thing with Bridgecorp.

But it was just an interest payment they couldn't repay not even a capital repayment so they were in trouble all right.

Maybe St L had to take to take Dorchester shares when they realised they wouldn't get back the money they loaned to Bridge corp. They must have know back then things were bad - Fiji was the thing.

I think finance companies would rather keep good faith and money coming in with depositors than pick up more for their loan book. Could mean some higher interest rates paid by this sector.

[Hoop]

Bling any bargains from Bridgecorp is possibly many months away. The smart companies were building up their reserves over the last few months, which affects their profits but keeps themselves solvent when the rush is on with investors wanting their funds back. These smart companies anticipated trouble brewing with Bridgecorp. The problem from today and into the short term is the run on investor's funds. This may see a few more wobbly companies collapse. The scary thing is that a very profitable company with a good rating may collapse just because they have too much of their capital on loan, at the time of a funds flight.
Obviously St L saw this happening and could explain the mysterous reason why they would ever want to hook up with DPC. Maybe as Lakeside has pointed if StL wanted any money back from its loan to Bridge it had to take the DPC shares in lieu. However a positive spin on this (if there is one!) STL valued DPC shares at $1.75 in the Bridgecorp loan yet paid $2.10ish for them. Bridgecorp had DPC valued at $2.90 per share on their books. So it seems that StL must have seen some value in DPC especially as it asset backing was then $1.92.
What slightly worries me is that DPC supposely has money in reserve,yet they paid a 4.25cps dividend which in my view was not smart. The dividend was 12% of reserve capital held so it's not of major concern.
I think these events with Bridgecorp may prevent DPC who I think were looking at acquistions and a share buy back from preceeding in the short term.

I think all finance companies will battening down their hatches as there is a storm due to arrive as from today, this will affect future profits.

[hairdresser]

Do DPC have any loans to Bridgecorp or related parties on its books? If they do it would explain the share price drop off.