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  1. #61
    ShareTrader Legend Beagle's Avatar
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    Quote Originally Posted by blackcap View Post
    Yep real solid, I like it, and have held for a few years now. What I like about this company is that it is not sexy. Not flavour of the month, they just get on with it. One caveat is that they are tightly held, with family (the Gibbons family) owning about 2/3's of the company. So illiquid but if you are in for the long haul no worries.
    Another caveat may be the same as I mentioned on the TRA thread. How are they able to cope with the changing face of the automotive market and are they able to adapt to survive. Another question I may ask Jim at the AGM.
    No sneezing at the 31 cent imputed dividend though and stellar capital gain these last few years.
    Interestingly revenue down and profit up. SO the sell off of Jeff Gray BMW last year justifiably warranted.
    It would appear so. BMW AG also have really high expectations regarding dealership presentation which costs dealerships truck loads of capex.
    I really scratch my head regarding BMW N.Z. pricing especially regarding high end product. Example a new BMW 750, retail approx. $240K, demo's circa $190K.
    Problem is high spec low mileage 2017 demo's in the U.K. for low 60K pounds incl VAT and openly advertised as VAT Qualifying so U.K. BMW dealers will sell you one exclusive of VAT for about 50K pounds.
    Add shipping, insurance, customs and local GST and you're looking at circa $115K Kiwi on the road here but local dealers want circa $190K.
    I think a lot of people are "showrooming" high end BMW product and then deciding what they want and parallel importing it or using one of the many existing parallel importers. (Its certainly crossed my mind more than once).
    Acknowledge there are spec differences between the countries and that BMW N.Z. offer a 5 year warranty and 3 year service inclusive package but nonetheless the German's who set the retail prices in N.Z. are not doing the dealerships any favours who typically only get 11% margin plus volume incentives and demonstrator rebates.
    Tough gig for BMW retailers up against all the parallel importer companies and those who do it themselves.
    Last edited by Beagle; 16-08-2017 at 04:20 PM.
    Ecclesiastes 11:2: “Divide your portion to seven, or even to eight, for you do not know what misfortune may occur on the earth.
    Ben Graham - In the short run the market is a voting machine but in the long run the market is a weighing machine

  2. #62
    percy
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    Jim Gibbons sounded some very loud warning bells at the agm.
    Take care.
    Last edited by percy; 04-11-2017 at 06:01 AM.

  3. #63
    Senior Member Marilyn Munroe's Avatar
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    Quote Originally Posted by Beagle View Post
    I really scratch my head regarding BMW N.Z. pricing especially regarding high end product. Example a new BMW 750, retail approx. $240K, demo's circa $190K.
    Bust My Wallet motors aren't the only ones to whom this Pom/Kiwi pricing discrepancy applies. Fiat-Chrysler are the same for their prestige brands.

    Boop boop de do
    Marilyn
    Diamonds are a girls best friend.

  4. #64
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    Quote Originally Posted by percy View Post
    Jim Gibbons sounded some very loud warning bells at the agm.
    Take care.
    Were you there too Percy? Did not see you. But was not really looking out for you either.

  5. #65
    percy
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    Quote Originally Posted by blackcap View Post
    Were you there too Percy? Did not see you. But was not really looking out for you either.
    No.
    I read his reported speech on both Scoop business and Daily ShareChat.
    Worrying.!
    Does not look as though Electric car franchise is secure,or retailing new cars is a good sector to be in.The comment about new car sales being made up with moving a good amount of "old" stock means margins are under pressure,as manufacturers try to move make room for "new" stock.I know a Toyota dealer who sold his dealership for this very reason. I also note the ChCh Toyota dealership has acres of cars that have yet to reach his yards.
    Last edited by percy; 04-11-2017 at 02:59 PM.

  6. #66
    ShareTrader Legend Beagle's Avatar
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    Quote Originally Posted by Marilyn Munroe View Post
    Bust My Wallet motors aren't the only ones to whom this Pom/Kiwi pricing discrepancy applies. Fiat-Chrysler are the same for their prestige brands.

    Boop boop de do
    Marilyn
    LOL that's a good one for BMW. I own a Chrysler SRT8 so feel well position to comment on that. We are fortunate that they build them in RHD for the low volume down under and in the U.K. among other RHD markets. Not really a mainstream brand but an especially good bit of kit for the money and when you take into account local ones here are sold choc-a-block with specification and technology taking into account shipping and the exchange rate from the U.S. we do pretty well, certainly better than a top end Euro.

    I don't think it was quite the alarm bell you allude too Percy. Hyundai dealers are already selling electric cars through their dealerships, BMW through their dealerships and Toyota hybrids e.t.c.e.t.c. for other brands so why would you imagine it would be any different for Ford and Mazda ? Trucks are apparently going very well.

    I'd be more worried about how buy rubbish cars is going if I were you. Top selling months are supposed to be September and October and isn't it strange that the TNR SP has been in such steady decline even right through the historical high selling period. Hmmm

    Meanwhile CMO confirmed a very good September quarter and latest registration data out this week for October sales shows new car sales continuing on at record level's.
    Last edited by Beagle; 04-11-2017 at 03:33 PM.
    Ecclesiastes 11:2: “Divide your portion to seven, or even to eight, for you do not know what misfortune may occur on the earth.
    Ben Graham - In the short run the market is a voting machine but in the long run the market is a weighing machine

  7. #67
    percy
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    Gibbons speech was full of very loud warning bells.
    We should also remember a weaker NZ $ works more against new car sales, than imported used cars sales.
    Last edited by percy; 04-11-2017 at 04:15 PM.

  8. #68
    ShareTrader Legend Beagle's Avatar
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    Here is the full text of his speech, people can decide for themselves.
    http://nzx-prod-s7fsd7f98s.s3-websit...763/268955.pdf
    Ecclesiastes 11:2: “Divide your portion to seven, or even to eight, for you do not know what misfortune may occur on the earth.
    Ben Graham - In the short run the market is a voting machine but in the long run the market is a weighing machine

  9. #69
    percy
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    Agreed.................................

  10. #70
    Divorced from logic Hectorplains's Avatar
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    Quote Originally Posted by percy View Post
    Gibbons speech was full of very loud warning bells.
    We should also remember a weaker NZ $ works more against new car sales, than imported used cars sales.
    http://www.nzherald.co.nz/business/n...ectid=11987605

    Record new car registrations in January. Earlier talk of 'alarm bells' might be premature at best. Ford and Mazda holding their ground, 2nd and 3rd in new vehicle registrations and Ford still No 1 in commercials.


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